Hang Seng Bank : Insurance Adds RMB Currency Option to Annuity Products (1 Jun 2021)

1 June 2021

Hang Seng Insurance Adds RMB Currency Option to Annuity Products

Greater Flexibility, Convenience and Choice for Customers as Opportunities in GBA Increase

With the opening up of opportunities in the Greater Bay Area ("GBA") gaining momentum, more Hong Kong people are expressing interest in eventually working, living or retiring in one of the GBA cities in mainland China.

Along this vein, Hang Seng Insurance Company Limited ("Hang Seng Insurance") has launched a Renminbi ("RMB") option for its FortuneLife Deferred Annuity Life Insurance Plan ("FortuneLife") and MaxiPlus Annuity Life Insurance Plan ("MaxiPlus") to make life easier for individuals who wish to retire in the Mainland by removing the hassle and costs involved in currency conversion from retirement planning considerations.

As awareness increases on the importance of making financial provisions for the future and a secure retirement, more customers in Hong Kong are turning to Hang Seng Insurance for advice about investing in annuity products, which are designed to provide a steady stream of regular income over the long term. In April 2021, Hang Seng Insurance's Qualifying Deferred Annuity Policy recorded a year-on-year growth of over 25% in new premiums.

At the same time, demographic trends and other developments are driving a growth in demand for more flexible retirement planning options. According to the Hong Kong Government's Thematic Household Survey on Willingness to Live in the Guangdong- Hong Kong-Macao Greater Bay Area*, conducted in 2019, more than 38% of the nearly 700,000 respondents who have considered relocating outside Hong Kong in the future expressed interest in living in the GBA cities. Hang Seng Insurance's RMB- denominated retirement products offer customers the flexibility and convenience of making it easier for them to move to other cities while still enjoying financial security in retirement.

more…

Hang Seng Insurance Adds RMB Currency Option to Annuity Products / 2

Applying for FortuneLife or MaxiPlus is simple and can be done at all branches of Hang Seng Bank. FortuneLife, which is a Qualifying Deferred Annuity Policy, is also eligible for tax deduction under the Hong Kong Government's concessionary tax measures.

Joe Lam, Chief Executive Officer of Hang Seng Insurance said: "As the GBA continues to develop, we expect more people in Hong Kong will consider moving to other locations in the GBA after their retirement. The launch of an RMB currency option for these two annuity products gives customers greater flexibility and choice as they plan for their retirement. Such products are also part of the solid framework we are building to capture an increasing share of the opportunities arising from the growth and development of the GBA.

"In addition, market commentators point to the continuing strength of the Mainland economy as providing good long-term growth potential for the RMB. With RMB- denominated annuity products still relatively new in the market, our RMB plan options give customers the chance to capture any long-term growth while also receiving a stable return," Lam added.

*Source: The Thematic Household Survey Report No. 71, Census and Statistics Department

Note:

FortuneLife and MaxiPlus are underwritten by Hang Seng Insurance. Hang Seng Bank Limited is the authorized insurance agent of Hang Seng Insurance.

# END #

Hang Seng Insurance Adds RMB Currency Option to Annuity Products / 3

About Hang Seng Bank

Hang Seng Bank is celebrating its 88th anniversary this year. Founded in 1933, the Bank has continually innovated to provide best-in-class,customer-centric banking, investment and wealth management services for individuals and businesses. It is widely recognised as the leading domestic bank in Hong Kong, currently serving more than 3.5 million customers.

Combining its award-winning mobile app and strong digital capabilities with a vast network of about 290 service outlets in Hong Kong, Hang Seng offers a seamless omni-channel experience for customers to take care of their banking and financial needs anytime, anywhere.

Its wholly owned subsidiary, Hang Seng Bank (China) Limited, operates a strategic network of outlets in almost 20 major cities in Mainland China to serve a growing base of Mainland customers locally and those with cross-boundary banking needs. The Bank also operates branches in Macau and Singapore, and a representative office in Taipei.

As a homegrown financial institution, Hang Seng is closely tied to the Hong Kong community. It supports the community with a dedicated programme of social and environmental initiatives focused on future skills for the younger generation, sustainable finance and financial literacy, addressing climate change and caring for the community.

Hang Seng is a principal member of the HSBC Group, one of the world's largest banking and financial services organisations. More information on Hang Seng Bank is available at www.hangseng.com.

About Hang Seng Insurance

Established in 1965, Hang Seng Insurance Company Limited ('Hang Seng Insurance') is a wholly owned subsidiary of Hang Seng Bank. Leveraging Hang Seng Bank's local extensive network of online and offline banking channels, Hang Seng Insurance is one of the top players in Hong Kong insurance market, offering a diverse range of personal insurance and corporate employee benefit products and services that meet the needs of customers from all walks of life and at all life stages.