AXA Launches Global Private Insurance in Hong Kong for High-Net-Worth Individuals
AXA is launching AXA Global Private in Hong Kong, aimed at high-net-worth individuals, as the city becomes the world's largest hub for cross-border wealth, surpassing Switzerland. This platform integrates life insurance with wealth management and succession services, specifically designed for affluent families in Asia. It also features specialized coverages like kidnap-and-ransom, art collection, and family-office insurance.
Sally Wan, CEO of AXA Greater China and head of AXA Global Private, emphasized the return of many high-net-worth individuals from mainland China to Hong Kong post-COVID-19. These individuals seek diversification and protection for family businesses and legacy planning. Wan stressed the importance of participating life policies in estate planning and tax management, noting these policies provide access to unique asset classes primarily in U.S. or Hong Kong dollars.
Mainland Chinese clients constitute approximately half of AXA Hong Kong’s total portfolio by premium, with many originating from private banks. Wan highlighted the intricate premium sizes and diverse needs of high-net-worth individuals, particularly in underwriting and financial planning. AXA plans to offer comprehensive insurance solutions, including art collection insurance, kidnap-and-ransom coverage, and tailored family office protection in both physical and cyber domains.
In 2022, AXA ranked 103rd on the Fortune Global 500, achieving revenues of €116 billion ($133 billion) and net income of €9.7 billion ($11.2 billion). The company has refocused on its core insurance business, selling AXA Investment Managers to BNP Paribas. This strategic shift underscores AXA’s commitment to strengthening its market position.
Hong Kong: Pioneering Cross-Border Wealth
Analysts from Boston Consulting Group highlight Hong Kong's dominance in cross-border wealth, managing $2.9 trillion driven by inflows from mainland China and a robust IPO market. Predictions suggest this advantage will expand, with cross-border flows expected to reach $4.6 trillion, outpacing Switzerland’s $4 trillion by decade’s end. This growth is principally fueled by wealth from mainland China.
Wan acknowledged Hong Kong's swift financial progress, aided by a thriving IPO market and burgeoning family offices, as central to wealth accumulation. She attributed the city's success in attracting global capital and family offices to proactive financial promotion efforts post-COVID. Despite Hong Kong's aging population and low fertility rate, Wan pointed out the pressure on insurance providers to accommodate longer life spans while addressing the inadequacies in eldercare facilities.
Future plans could see AXA Global Private expand to the Middle East, recognizing current limited flows but anticipating growth with Middle Eastern entrepreneurs extending their businesses into Asia.