By Roxanne Libatique
Yuexiu Enterprises (Holdings) Limited has finalised its acquisition of Hong Kong Life Insurance Limited, resulting in a significant change in the insurer’s ownership and strategic direction.
The transaction was completed following regulatory approval on Sept. 25, and involved the purchase of an 83.33% stake in Hong Kong Life by Yuexiu Insurance (Holdings) Limited, a wholly owned subsidiary of Yuexiu.
The remaining 16.67% of shares are held by Chong Hing Insurance Company Limited, also under the Yuexiu umbrella, making Yuexiu the ultimate owner of the insurer.
The acquisition was initiated through a share purchase agreement signed on Dec. 27, 2024, with the previous shareholders – Asia Insurance Company Limited, CMB Wing Lung Agency Limited, OCBC Bank (Hong Kong) Limited, and Shanghai Commercial Bank Limited – agreeing to sell their stakes.
This move consolidates Hong Kong Life’s ownership under Yuexiu and sets the stage for the company’s next phase of development.
Andrew Li Feng, who now chairs the board at Hong Kong Life, said the deal aligns with Yuexiu’s broader ambitions in the financial sector.
“Hong Kong Life has a well-established and reliable brand and its deeply rooted relationship built with customers is highly complementary to Yuexiu’s vision of building a robust and diversified financial service platform across the Greater Bay Area,” he said.
He also confirmed that Yuexiu plans to inject HK$1 billion in additional capital into Hong Kong Life, a move intended to strengthen the insurer’s capital base and support the rollout of new products and distribution channels.
Raymond Chang, chief executive of Hong Kong Life, commented on the company’s transition, noting that the insurer is entering a new phase as part of Yuexiu Group.
“With Yuexiu’s robust strength and abundant resources, Hong Kong Life is well-positioned to accelerate its innovation, enhance our product quality and customer experience, and expand our market presence,” he said.
He indicated that the capital infusion will enable Hong Kong Life to focus on retirement and health-related insurance solutions, areas that are increasingly important given demographic changes and cross-border trends in the Greater Bay Area.
The transaction occurs against a backdrop of steady expansion in Hong Kong’s life insurance sector. Market research from GlobalData forecasts that direct written premiums in the city’s life insurance market will reach HK$575.6 billion (US$73.7 billion) by 2029, up from an estimated HK$489.3 billion (US$62.6 billion) in 2024. This represents a compound annual growth rate of 3.3% over the five-year period. For 2025, the market is projected to grow by 2.9% to HK$503.3 billion (US$64.4 billion).
Factors contributing to this growth include the ongoing economic recovery, an aging population, and increased demand for whole life and pension products, particularly among international policyholders.
Hong Kong Life’s management has indicated that the company will prioritise the development of retirement and health protection products, with a focus on supporting customers who may seek services across the Greater Bay Area.
The additional capital from Yuexiu is expected to facilitate product innovation and expansion into new service areas, while reinforcing the insurer’s commitment to providing solutions that address evolving market needs.
The completion of this acquisition is likely to influence the competitive landscape in Hong Kong’s insurance industry, as other market participants may respond to the increased scale and resources now available to Hong Kong Life under Yuexiu’s ownership.
The integration is also expected to promote further collaboration and synergies within Yuexiu’s financial services portfolio, supporting the group’s long-term strategy in the region.
