2. 2
Forward-looking statements
This presentation and subsequent discussion may contain certain forward-looking statements with
respect to the financial condition, results of operations and business of HSBC Holdings plc and HSBC
Bank plc. These forward-looking statements represent the bank’s expectations or beliefs concerning
future events and involve known and unknown risks and uncertainty that could cause actual results,
performance or events to differ materially from those expressed or implied in such statements.
Additional detailed information concerning important factors that could cause actual results to differ
materially is available in both Annual Reports.
3. 3
Introduction
• A rapidly growing global insurer
• Distribution capability in over 50 countries and territories worldwide
• In 2007, HSBC’s insurance businesses generated:
– USD9.1 billion net earned premiums
– USD3.1 billion profit before tax (13 per cent of total Group PBT)
• Over 10,000 staff employed in insurance worldwide
• Access to a potential in-house customer base of over 128 million customers and companies by
joining-up the Group
4. 4
Our history goes back 200 years
20 per cent of
Associated Bankers
Insurance co (Hang
Seng’s associated
company)
Antony Gibbs Holdings
Ltd (20 per cent) of
participation
Wardley Swire Assurance
Arthur Weller
East Point
Reinsurance co
Middle East
Insurance Holdings
Al Sagr East Ins
Co of Saudi Arabia
Acquisition of Antony Gibbs
Marine Midland
Bamerindus
Seguros
Banco Roberts
SA
CCF Life/ERISA
10 per cent Ping An Ins Co
Grupo Financiero Bital, SA
Household
Bank of Bermuda
EE Cooper & Co –
Insurance Brokers
Antony Gibbs & Sons Ltd
20 per cent of
Malayan Group of
Companies, through
Mico Equities Inc
(Wardley Insurance)
1808 1965 1973 1976 1978 1979 1980 1987 1997 2000 2002 20031874 1977 1984
Hartley Cooper & Co Ltd
1992
Midland Bank
2006 2007
Grupo Banistamo
Joint Venture
Malaysia
• Erisa 100 per cent
• Hana Life Korea
• Bao Viet
• Joint venture India
• Joint venture
China
• SABB Takaful
Company (Saudi
Arabia)
5. 5
Asian Update
• Rapidly growing regional presence – strong PBT in 2007
• Joint ventures / strategic investments in Vietnam, Korea, India, Malaysia, China
• Manufacturing capabilities went from 3 to 8 Asia Pacific sites
• Winner Asian Banker ‘Excellence in bancassurance’ awards, 2007
• Asia (including Ping An) generated 39% of 2007 PBT
6. 6
34%
53%
13%
Manufacturing
Distribution excl Ping An
Ping An
PBT by type of business, 2007PBT by region, 2007
27%
14%
20%
13%
26%
Asia excl Ping An Ping An
Europe Latin America
North America
Our insurance business is well-balanced and growing
7. 7
Overview of HSBC Insurance
• HSBC manufactures life, pensions and investments products within HSBC Life (UK) for distribution
through the HSBC network and external IFAs
• GI products are distributed through HSBC network, First Direct and Marks and Spencer stores
These products are underwritten by 3rd party insurance companies, with a JV currently being formed
with Aviva Norwich Union. Other parties include Allianz
• Insurance broking
• Reinsurance services in Ireland
• Actuarial consultancy and pension services
• Health insurance underwritten by Westfield Contributory Health Scheme Limited
UK
• ERISA and ERISA IARD
• Distributes life insurance, GI and
investment products, exclusive
distributors of insurance through
HSBC’s network of member banks
(includes HSBC France and 10 regional
banks)
France
• 25.9 per cent stake in
HSBC Insurance
Brokers (India) Private
Limited
− Insurance broking
company
− Direct and
reinsurance broker
− JV with OBC and
Canara Bank being
formed
India
• HSBC Insurance (Asia Pacific) Holdings Limited
– 100 per cent owned
• HSBC Life (International) Limited – 100 per cent
owned
• HSBC Insurance (Asia) Limited – 100 per cent
owned
• Hang Seng Life and Hang Seng Insurance
Company Limited – subsidiaries of Hang Seng
bank (62.14 per cent owned by HSBC)
Hong Kong
• Malaysia
− HSBC Amanah Takaful
− 49 per cent JV with Jerneh Asia Berhad and
The Employee Provident Fund of Malaysia
− Offers Shariah-compliant insurance (home, fire,
motor, mortgage) underwritten by Syaikat
Takaful Malaysia Berhad
• Macau
− Established HSBC Life branch in 2006
• Singapore
− HSBC Insurance (Singapore) Limited
− 100 per cent owned
• Vietnam
− HSBC participated in the IPO and acquired a 10
per cent stake in Vietnam’s leading insurance and
financial services group, Vietnam Insurance
Corporation (Bao Viet)
• South Korea
− HSBC Hana Life partnership 2007
Rest of Asia
• 16.8 per cent stake in Ping An Insurance
• Beijing HSBC Insurance Brokers Limited – 24.9 per cent owned JV
− Partnered with Shanghai Hua Yu Asset Management and Beijing Zhang
Ke Engineering Company
• CEPA partnership with National Trust
China
• HSBC Seguros – 100 per cent
owned
• Long-term distribution
agreement whereby HDI, a
subsidiary of Talanx, offers GI
products through the HSBC
Brazil branch network
following the 2005 sale of
HSBC GI arm to HDI
Brazil
• HSBC Insurance Agency (USA) – 100
per cent owned
• Offers life insurance and also
underwrites
• Offers credit protection to 50 million
HSBC finance customers
USA
• HSBC Seguros – 100 per cent owned
• HSBC Afore – 100 per cent owned
• HSBC Pensiones – 100 per cent owned
• Seguros provides a range of Life and
GI products; products are distributed
through bank branches
• HSBC Pensiones provides annuities
and survivorship insurance
Mexico
• HSBC La Buenos Aires Seguros – 100
per cent owned
• JVs with New York Life
− Maxima – 59.99 per cent owned
− Specialises in pensions
− HSBC New York Life
• A top three market share leader
• Distributes through HSBC’s insurance
brokerage arm and the network of
more than 2,000 points of sale
Argentina
• Grupo Banistmo bought in
2006, with presence in
Panama, Honduras and El
Salvador
Central America
• SABB Takaful Company JV
− Offers Shariah-compliant
solutions
• Insurance Brokers Limited
operates in the Middle East
through the brand HSBC
Insurance
Middle East
8. 8
Vision: A world-class bancassurer with an aim to double PBT
contribution to 20 per cent
• Belief in Bancassurance within a multichannel delivery strategy
• Six strategic initiatives:
– Top ranking Life/Pensions and Investment provider
– World-class ethical credit protection insurer
– Improved management of Group Self Insurance programme
– Working with Preferred Strategic Partners to gain scale
– A focused, profitable insurance broker, supporting Commercial Banking and Global Banking and Markets clients
and third parties
– Operational efficiency: more customer satisfaction and Straight Through Processing (STP)
• Drive manufacturing excellence based upon STP
• Establish HSBC Insurance c brand – with high-quality ‘brand experience’
• Best place to work – high IQ, challenging, collegiate and financially rewarding
9. 9
Bancassurance focused on Life, Pensions and Investment
• 75 per cent of all wealth in the hands of those
older than 55
• These individuals and their assets need
protection (insurance) and investments
• Ageing is accelerating this shift as old
borrowers de-leverage
• Equally applicable in developed and
emerging markets
• This ‘sea change’ is too big an opportunity to
miss and should build on HSBC credit
credentials
*Source: US Federal reserve , 2004
Financial needs map
Age
Wealth
Youth
High
Low
Insurance investment
needs
Bank (Credit) Products
Old
10. 10
Credit enhancement
• Important, logical business
• Operating in 28 countries
• Ethically sold
• Meets real customer needs in OECD
and emerging markets
Value to customer
Value to HSBC
Eg
• Travel accident
• Purchase protection
Included/Packaged
Eg
• Credit life
• Accident, sickness, health
• Unemployment
• Special event payment breaks
Credit protection
Eg
• Identity protection
• ATM safe
Enhanced/Add-on
Eg
• Personal accident
• Hospital cash
• Travel
Ancillary
12. 12
Summary
An international business focused on key geographies
An integral capability within the HSBC Group
Aim to double insurance contribution to Group profits
through a mix of organic and joint ventures
