According to foreign media reports, HSBC Holdings (00005.HK) has signed a memorandum of understanding with Matmut Societe d’Assurance Mutuelle for the potential sale of the French life Insurance business, HSBC Assurances Vie (France).

According to the financial terms of the potential Trade, Matmut will acquire HSBC Assurances Vie (France) for 0.925 billion euros in cash, which is expected to result in an approximate pre-tax loss of 0.1 billion euros for HSBC Continental Europe, with the potential Trade subject to regulatory approval before completion, anticipated to occur in the second half of next year.

HSBC Assurances Vie (France) has over 20 billion euros in outstanding Assets, with a profit of 77 million euros in 2023 and a solvency II ratio of 287%. As part of the potential Trade, HSBC Continental Europe and Matmut will establish a long-term cooperative arrangement, and HSBC Assurances Vie (France) will continue its existing distribution arrangements with HSBC Global Asset Management (France).