Business
Hiscox to sell Hong Kong division of DirectAsia
Hiscox to sell Hong Kong division of DirectAsia.
About this update from Hiscox Ltd
[{"type":"text","content":"\n \nRNS Number : 6087R Hiscox Ltd 10 March 2016 \n \n\n \n \nHiscox Group agrees to sell Hong Kong division of DirectAsia to Well Link\nHiscox Group to focus future growth strategy of DirectAsia on Singapore and Thailand\n \nHamilton, Bermuda (Thursday 10th March 2016) - Hiscox, the global specialist insurance group, has today announced that it has reached an agreement to sell the Hong Kong division of its DirectAsia business to Well Link Group Holdings Limited, a member of a Hong Kong based financial conglomerate. The transaction, which allows Hiscox to focus the future growth of DirectAsia on its operations in Singapore and Thailand, is subject to regulatory approval from the Office of the Commissioner of Insurance (OCI) in Hong Kong. \n \nThe Hong Kong division of DirectAsia was established in 2012. It generated US$8 million of GWP in 2015, serves 29,000 customers and employs 40 people. Its primary business is motor, with ancillary lines in travel. As a direct-to-consumer insurance provider supported by call centres, it is a differentiated model in a market where agent-based channels predominate. \n \nIts new owner, Well Link Group Holdings Limited, is backed by an investor group with interests in insurance broking, corporate and customer finance, securities and futures brokerage, and asset management. Its acquisition of the Hong Kong division of DirectAsia will complement its existing businesses and provide it with broader product opportunities.\n \nBob Thaker, Managing Director, DirectAsia Group, commented: \"The Hong Kong division of DirectAsia is a business with a great team and a distinctive business model, which has grown its premium income strongly since launch. However the focus for DirectAsia is on our core Singapore and Thailand markets where we see significant growth opportunities, and this transaction allows us to focus our energy and investment on those markets. Well Link is a great fit in terms of values and culture for the people and customers of the Hong Kong business unit, and this transaction gives them an attractive platform for growth in the region.\"\n \nA representative from Well Link, added: \"We welcomed the opportunity working with the current DirectAsia team to make it another successful business of our group. It is an impo...