HSBC has agreed to sell its £4.2bn UK pensions business to ReAssure.
Under the terms of the agreement, announced to the London Stock Exchange this morning, HSBC will sell its corporate and individual pensions policies and an associated annuities book to ReAssure.
HSBC Life, the bank’s UK provider arm, will continue to manufacture protection and insurance bonds and provide wealth and retirement planning
The value of the underlying assets under management involved in the deal is estimated at £4.2bn. Some £4bn of those assets are managed by HSBC Global Asset Management – this will continue to be the case after the transaction completes.
The deal is subject to regulatory approval and is expected to be finalised in the second half of 2015.