HSBC and Aviva Enter into General Insurance JV

International banking giant HSBC has selected insurance provider Aviva to form a joint venture, under the HSBC Insurance brand, with a vision to become a top 10 player in the UK general insurance market.

Under the terms of the planned joint venture, HSBC and Norwich Union Insurance, the UK general insurance arm of Aviva, will underwrite and distribute general insurance products to HSBC's 10.2 million customers in the UK.

Dyfrig John, CEO of HSBC Bank, said: "The proposed joint venture will bring together, in HSBC and Norwich Union, two of Britain's most trusted brands. We believe that combining HSBC's distribution network and Norwich Union's underwriting and customer management capabilities will create one of the best general insurance services the market has to offer."

Norwich Union and HSBC have had a successful underwriting relationship for the past 23 years and, with this latest proposal, their relationship will be further strengthened. At present, HSBC distributes protection, home, travel and car insurance products created by Norwich Union.

In addition to the plans for the joint venture, HSBC intends to sell Hamilton Insurance Company and Hamilton Life Assurance Company to companies within the Aviva group. The Hamilton companies are currently owned by HFC Bank, a subsidiary of US-based HSBC Finance Corporation.