AIA Group Agrees to Buy Bank of East Asia’s Non-Life Insurance Businesses for $278M

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Bank of East Asia (BEA) said late on Friday it has agreed to sell its non-life insurance and healthcare services businesses to a unit of AIA Group Ltd. for an aggregate HK$2.168 billion ($278 million).

BEA agreed to sell its medical, travel and general insurance services unit Blue Cross (Asia-Pacific) Insurance and all of its 80% interest in healthcare services unit Blue Care JV (BVI) Holdings to AIA to generate value for shareholders.

AIA Group to Buy Life Insurance Business of Bank of East Asia

The Hong Kong-based bank expected to book an aggregate profit of HK$1.534 billion upon completion of the deals, it said in a filing to the Hong Kong bourse.

Asia-focused AIA’s largest market is mainland China, which along with Hong Kong accounts for about half of its business.

BEA shares have risen 11.8% so far this year as of last close, while AIA shares have gained 1%.

($1 = 7.8136 Hong Kong dollars)

(Reporting by Donny Kwok; editing by Christian Schmollinger)