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

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.

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)