HSBC LOOKS TO INSURANCE EXPANSION

Global financial services group HSBC is looking to boost its insurance operations to 20% of the group’s profit pre-tax within five years, according to Choy Chung-foo, CEO of HSBC Insurance (Asia-Pacific). Mr Choy said that HSBC plans to establish joint ventures for insurance business in mainland China and India. Premium volume on the Chinese mainland last year was US$60.1bn, with a penetration rate of 2.7%. In India, ipremium volume was $25.0bn, with a penetration rate of 3.14%. Mr Choy said that insurance business worldwide contributed $1.4bn of the group’s profits, equal to 10% of the whole group’s profit, for 2004. He said that most of the profit derived from Europe. HSBC plans to establish a life operation on the mainland before the end of the year, through its alliance with Bank of Communications (Bocom). Mr Choy did not name the likely partner, although the company does own a stake in Ping An.