The Bank of East Asia (BEA) said it had agreed to sell its non-life insurance and healthcare services business to a unit of AIA Group Ltd for a total consideration of HK$2.168 billion ($278 million). BEA will sell its entire 80% interest in Blue Cross (Asia-Pacific) Insurance, its medical, travel, and general insurance services arm, and Blue Care JV (BVI) Holdings, its medical services arm, to AIA to create shareholder value.
According to the announcement, the directors believe that the sale of Blue Cross and the bank’s interest in Blue Care and the proposed amendment and restatement of the Regional Distribution Agreement and the Blue Cross Distribution Agreement are in the bank’s best interests. The value generated by this transaction is in the interests of the bank’s shareholders. By entering into the Blue Cross distribution agreement, the bank will be able to expand its existing exclusive life insurance partnership with AIA to include non-life insurance products, which is expected to further boost the bank’s service fee income.