Matmut has struck a deal to acquire HSBC Continental Europe’s life insurance division, namely HSBC Assurances Vie, for EUR 925 million with a joint venture provision.

HSBC Continental Europe of HSBC Holdings has entered into an MOU with Matmut Société d’Assurance Mutuelle for an actual offer of a transaction for the sale of HSBC Assurance Vie to do business as the French life insurance arm of HSBC Continental Europe. It stands at EUR 925 million subject to some regulatory clearances before it can fully materialize in the second half of 2025.

This would mean for HSBC Continental Europe a pre-tax deficit of nearly 100 million euros. HSBC Assurances Vie has assets worth over 20 billion euros and has earned 77 million euros in 2023. It also fulfills Solvency II ratio of 287% signifying good financial health of the firm.

In addition, HSBC and Matmut will also have a new long term funding agreement; following the implementation of the new agreement, HSBC Assurances Vie and HSBC Global Asset Management (France) will also have their distribution deals.