AXA becomes second insurer to redomicile from Bermuda to Hong Kong

French insurer AXA’s Hong Kong unit, one of the city’s largest life and general insurers, has become the second insurance company to move its domicile to Hong Kong from Bermuda, according to a statement on Monday. At least three other local insurers, including the local unit of Canada’s Sun Life, were planning the same move after a law change in May simplified the process, according to industry players. AXA was the first to begin the process after the rule change, but Manulife International was the first insurer to complete the move, in December. “The redomiciliation underscores our strong confidence in Hong Kong’s strategic importance and growth potential, and reflects our unwavering commitment to serving customers with resilience and innovation,” said Sally Wan Yuen-wai, CEO of AXA Greater China. “With this redomiciliation now complete, we are even better positioned to capitalise on Hong Kong’s vibrant momentum as Asia’s leading risk-management and insurance hub.” Wan said Hong Kong was a gateway to the Greater Bay Area, where insurance penetration was low, making it a high-growth area. The Greater Bay Area comprises Hong Kong, Macau and nine mainland cities in Guangdong province. “There’s clearly a high growing need for good quality healthcare and wealth planning solutions,” Wan said. “Opportunities in wealth protection and legacy planning for high-net-worth clients are also promising.” From Monday, AXA China Region Insurance Company (Bermuda) will be renamed AXA China Region Insurance Company (Hong Kong) to reflect the move. The Insurance Authority said AXA’s re-domiciliation reinforced “Hong Kong’s strong appeal as an international financial centre and the industry’s commitment to contributing to Hong Kong as a regional insurance hub”. “The Insurance Authority will continue to work closely with all relevant parties to enable interested insurers to re-domicile to Hong Kong under the regime, supporting the Government’s vision to strengthen headquarters economy,” it said. About a dozen insurers in Hong Kong are incorporated in Bermuda. They chose the Caribbean nation for tax purposes because of a Hong Kong government estate duty, which was eliminated in 2006. Insurance companies that wanted to redomicile after the duty was eliminated could not easily do so due to a lack of legal support. The law change in May allows companies incorporated overseas to establish themselves in the city while maintaining their legal identities and business continuity. Previously, a company that wanted to move its domicile had to close an existing entity and shift all assets and transactions to a new firm in Hong Kong. Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said AXA’s relocation showed that the new law helped to attract companies to the city. The Companies Registry had approved 14 cases and was processing 30 more applications from financial firms, holding companies, insurers and fund houses, he added. “The government will continue to work with the companies to facilitate them to move to domicile in Hong Kong,” Hui said on the sidelines of the Asian Financial Forum on Monday. In October, a unit of PetroChina Investment (Hong Kong) became the first company approved to reincorporate in the city under the new law. In September, two Hong Kong-listed companies under China Resources Group announced plans to redomicile from the Cayman Islands: China Resources Beverage (Holdings), the mainland’s second-largest water bottler under the brand C’estbon, and its sister company, China Resources Building Materials Technology Holdings.