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Straits Times
7 days ago
- Business
- Straits Times
Hong Kong asks insurers to return investing roles from Singapore, sources say
Sign up now: Get ST's newsletters delivered to your inbox Life insurers have become the latest target in Hong Kong's efforts to compete with Singapore in retaining talent and capital. HONG KONG - Life insurers have become the latest target in Hong Kong's efforts to compete with Singapore in retaining talent and capital. Over the past year, Hong Kong's insurance regulator has been steering some of the financial hub's biggest life insurers to move investment decision-making functions back to the city following their relocation to Singapore, according to people familiar with the matter. The push, led by the Hong Kong Insurance Authority (hkia), started in early 2024 and is focusing on companies including AIA Group, the people said. The HKIA is a regulator independent of the government, according to its website. Drawn by incentives such as tax advantages offered by the Monetary Authority of Singapore (mas), some insurers have in recent years accelerated efforts to establish the city-state as a regional asset management hub, despite making policy sales mainly in Hong Kong, the people said. While the move to Singapore was allowed by the HKIA, a number of emerging challenges prompted concern among regulators. Intensifying competition between the two financial hubs for talent and capital - as well as rising concentration risks among asset managers - triggered scrutiny over the relocations, the people said. The Hong Kong insurance regulator is able to track the decision-making process when insurers notify them about their outsourcing decisions. Based on a guideline known as GL14, the HKIA can look through detailed arrangements between the insurers and the investment managers who they entrust money with, including the amount and the location. In at least one case, the HKIA specifically looked at whether the Hong Kong investment team ultimately decides the mandates, according to one of the people. The regulator has indicated it wants to create more jobs in the city, including from insurers, fund managers and law firms, the people said. Top stories Swipe. Select. Stay informed. Singapore Hidden vapes and where to find them: Inside ICA's clampdown at land checkpoints Singapore East-West Line MRT service resumes after delays lasting around 5 hours; track point fault fixed Opinion Internships open doors but only if students can first find the key World Meta says it's working to thwart WhatsApp scammers Singapore Jail for 2 friends who swopped seats in car to try and evade justice after drinking alcohol Singapore Sorting recyclables by material could boost low domestic recycling rate: Observers Singapore SM Lee receives Australia's highest civilian honour for advancing bilateral ties Asia Trump's sharp India criticism corners Modi as rift deepens The HKIA said there is no statutory requirement for long-term insurers to maintain their assets in Hong Kong or to exercise their investment-decision making in the city. Nonetheless, all authorizSd insurers are expected to manage their assets prudently and avoid the building up of concentrated exposure. This will ensure insurers can swiftly settle claims and meet contractual obligations for the protection of policyholders, the regulator said. The HKIA said it will also pay due regard to potential legal and operational constraints on fungibility of capital across different jurisdictions. Singapore presence In the case of AIA, it established an asset management company under a structure known as the variable capital company in Singapore in 2021. The insurer operates in 18 Asian markets with businesses ranging from life insurance to pensions. AIA has since been moving assets in private equity and global stock strategies from Hong Kong to Singapore, according to the people. Hong Kong's management arm is looking after mostly pension money raised from the city, the people added. With 198 employees, Singapore-based AIA Investment Management Private Ltd. (AIAIM) managed US$139 billion (S$179 billion) as of end 2024. AIA Group's total invested assets stood at about US$255 billion in the same period. AIA's Hong Kong-based senior group investment executives are in charge of setting up asset allocation principles and monitoring various managers, including AIAIM, but the fund selection decisions are in the hands of the Singapore investment team, the people said. AIA declined to comment. MAS said in a response to Bloomberg News that Singapore's asset management industry has seen healthy growth from diversified sources outside the city-state, including North America, Europe and Asia. The VCC structure offers investment funds greater operational flexibility and saves costs, it added. The number of companies with regional headquarters in Hong Kong dropped from 1,457 in 2021 to 1,410 in 2024, according to government data. One Hong Kong-based insurer was recently guided by people at the HKIA not to move assets into Singapore VCC structures, one person said. Assets under management across Hong Kong's asset and wealth management industry rose 13 per cent to HK$35.1 trillion (S$5.8 trillion), according to a Securities and Futures Commission annual survey with some 40 insurance firms. BLOOMBERG
Business Times
05-08-2025
- Business
- Business Times
Hong Kong asks insurers to move investing roles from Singapore, in push to compete on talent
[HONG KONG] Life insurers have become the latest target in Hong Kong's efforts to compete with Singapore in retaining talent and capital. Over the past year, Hong Kong's insurance regulator has been steering some of the financial hub's biggest life insurers to move investment decision-making functions back to the city following their relocation to Singapore, according to sources familiar with the matter. The push, led by the Hong Kong Insurance Authority (HKIA), started in early 2024 and is focusing on companies including AIA Group, the sources said, requesting not to be named because the matter is private. The HKIA is a regulator independent of the government, according to its website. Drawn by incentives such as tax advantages offered by the Monetary Authority of Singapore (MAS), some insurers have in recent years accelerated efforts to establish the city-state as a regional asset management hub, despite making policy sales mainly in Hong Kong, the sources said. While the move to Singapore was allowed by the HKIA, a number of emerging challenges prompted concern among regulators. Intensifying competition between the two financial hubs for talent and capital, as well as rising concentration risks among asset managers, triggered scrutiny over the relocations, the sources said. The Hong Kong insurance regulator is able to track the decision-making process when insurers notify them about their outsourcing decisions. Based on a guideline known as GL14, the HKIA can look through detailed arrangements between the insurers and the investment managers who they entrust money with, including the amount and the location. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In at least one case, the HKIA specifically looked at whether the Hong Kong investment team ultimately decides the mandates, according to one of the sources. The regulator has indicated it wants to create more jobs in the city, including from insurers, fund managers and law firms, the sources said. The HKIA said that there is no statutory requirement for long-term insurers to maintain their assets in Hong Kong or to exercise their investment-decision making in the city. Nonetheless, all authorised insurers are expected to manage their assets prudently and avoid the building up of concentrated exposure. This will ensure insurers can swiftly settle claims and meet contractual obligations for the protection of policyholders, the regulator said. The HKIA said that it will also pay due regard to potential legal and operational constraints on the fungibility of capital across different jurisdictions. Singapore presence In the case of AIA, it established an asset management company under a structure known as the variable capital company in Singapore in 2021. The insurer operates in 18 Asian markets with businesses ranging from life insurance to pensions. AIA has since been moving assets in private equity and global stock strategies from Hong Kong to Singapore, according to the sources. Hong Kong's management arm is looking after mostly pension money raised from the city, the sources added. With 198 employees, Singapore-based AIA Investment Management Private (AIAIM) managed US$139 billion as at the end of 2024. AIA Group's total invested assets stood at about US$255 billion in the same period. AIA's Hong Kong-based senior group investment executives are in charge of setting up asset allocation principles and monitoring various managers, including AIAIM, but the fund selection decisions are in the hands of the Singapore investment team, the sources said. General partners and asset managers mostly talk to the Singapore team for mandates, according to sources familiar. AIA has said that it intends to keep its headquarters in Hong Kong. Its outgoing non-executive chairman Edmund Tse said in 2024 that the company had no intentions to relocate. AIA declined to comment. The number of companies with regional headquarters in Hong Kong dropped from 1,457 in 2021 to 1,410 in 2024, according to government data. One Hong Kong-based insurer was recently guided by people at the HKIA not to move assets into Singapore VCC structures, one source said. Assets under management across the city's asset and wealth management industry rose 13 per cent to HK$35.1 trillion (S$5.8 trillion), according to a Securities and Futures Commission annual survey with some 40 insurance firms. The MAS said in a response to Bloomberg News that Singapore's asset management industry has seen healthy growth from diversified sources outside the city-state, including North America, Europe and Asia. The VCC structure offers investment funds greater operational flexibility and saves costs, it added. BLOOMBERG
Business Times
05-08-2025
- Business
- Business Times
Hong Kong asks insurers to return investing roles from Singapore
[HONG KONG] Life insurers have become the latest target in Hong Kong's efforts to compete with Singapore in retaining talent and capital. Over the past year, Hong Kong's insurance regulator has been steering some of the financial hub's biggest life insurers to move investment decision-making functions back to the city following their relocation to Singapore, according to sources familiar with the matter. The push, led by the Hong Kong Insurance Authority (HKIA), started in early 2024 and is focusing on companies including AIA Group, the sources said, requesting not to be named because the matter is private. The HKIA is a regulator independent of the government, according to its website. Drawn by incentives such as tax advantages offered by the Monetary Authority of Singapore (MAS), some insurers have in recent years accelerated efforts to establish the city-state as a regional asset management hub, despite making policy sales mainly in Hong Kong, the sources said. While the move to Singapore was allowed by the HKIA, a number of emerging challenges prompted concern among regulators. Intensifying competition between the two financial hubs for talent and capital, as well as rising concentration risks among asset managers, triggered scrutiny over the relocations, the sources said. The Hong Kong insurance regulator is able to track the decision-making process when insurers notify them about their outsourcing decisions. Based on a guideline known as GL14, the HKIA can look through detailed arrangements between the insurers and the investment managers who they entrust money with, including the amount and the location. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up In at least one case, the HKIA specifically looked at whether the Hong Kong investment team ultimately decides the mandates, according to one of the sources. The regulator has indicated it wants to create more jobs in the city, including from insurers, fund managers and law firms, the sources said. The HKIA said that there is no statutory requirement for long-term insurers to maintain their assets in Hong Kong or to exercise their investment-decision making in the city. Nonetheless, all authorised insurers are expected to manage their assets prudently and avoid the building up of concentrated exposure. This will ensure insurers can swiftly settle claims and meet contractual obligations for the protection of policyholders, the regulator said. The HKIA said that it will also pay due regard to potential legal and operational constraints on the fungibility of capital across different jurisdictions. Singapore presence In the case of AIA, it established an asset management company under a structure known as the variable capital company in Singapore in 2021. The insurer operates in 18 Asian markets with businesses ranging from life insurance to pensions. AIA has since been moving assets in private equity and global stock strategies from Hong Kong to Singapore, according to the sources. Hong Kong's management arm is looking after mostly pension money raised from the city, the sources added. With 198 employees, Singapore-based AIA Investment Management Private (AIAIM) managed US$139 billion as at the end of 2024. AIA Group's total invested assets stood at about US$255 billion in the same period. AIA's Hong Kong-based senior group investment executives are in charge of setting up asset allocation principles and monitoring various managers, including AIAIM, but the fund selection decisions are in the hands of the Singapore investment team, the sources said. General partners and asset managers mostly talk to the Singapore team for mandates, according to sources familiar. AIA has said that it intends to keep its headquarters in Hong Kong. Its outgoing non-executive chairman Edmund Tse said in 2024 that the company had no intentions to relocate. AIA declined to comment. The number of companies with regional headquarters in Hong Kong dropped from 1,457 in 2021 to 1,410 in 2024, according to government data. One Hong Kong-based insurer was recently guided by people at the HKIA not to move assets into Singapore VCC structures, one source said. Assets under management across the city's asset and wealth management industry rose 13 per cent to HK$35.1 trillion (S$5.8 trillion), according to a Securities and Futures Commission annual survey with some 40 insurance firms. The MAS said in a response to Bloomberg News that Singapore's asset management industry has seen healthy growth from diversified sources outside the city-state, including North America, Europe and Asia. The VCC structure offers investment funds greater operational flexibility and saves costs, it added. BLOOMBERG
Yahoo
07-04-2025
- Business
- Yahoo
XChange TEC expands into Hong Kong with acquisition
XChange TEC has strengthened its presence in Asia-Pacific with the acquisition of an insurance brokerage in Hong Kong. This move offers the company 'direct access' to the Hong Kong insurance market, with plans to roll out customised insurance solutions for clients across China and international markets. XChange TEC said that the acquisition of the brokerage, licensed by the Hong Kong Insurance Authority, is a 'critical milestone' in its Asia-Pacific growth plan and will help it benefit from Hong Kong's growing insurance sector, which has experienced high demand from mainland Chinese clients and expatriates. The move into Hong Kong supports XChange TEC's aim to become the 'one-stop' hub for risk management and wealth enhancement solutions. Hong Kong's insurance sector serves as a global capital gateway, the company said in a statement. The region offers opportunities to cater to the needs of high-net-worth individuals, multinational corporations and cross-border investors, it added. XChange is an insurance agency and insurance technology business with subsidiaries and consolidated variable interest entities. The insurance agency, licensed in China, offers an array of insurance products and operates nationwide, collaborating with both state-owned and regional property and casualty insurance companies in China. The company's insurance technology arm focuses on developing and operating insurance technology in China, including a software-as-a-service platform that bridges the gap between consumers and underwriting support. In November 2024, XChange regained compliance with NASDAQ's minimum bid price requirement, following a prior notice from the exchange indicating non-compliance with the rule. "XChange TEC expands into Hong Kong with acquisition " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
