HSBC expects to register a $100m (approximately £73m) pre-tax loss on the sale of the HSBC Life (UK) arm to Chesnara.
Earlier in July HSBC and Chesnara announced the agreement to buy the HSBC Life (UK) business for £260m, with it expected to complete in 2026.
The transaction includes all in-force life insurance policies and investment products written by the business with around 454,000 policies, of which approximately 432,000 are protection products.
The bank announced the anticipated pre-tax loss as part of its results for the first half of 2025 published today.
It noted the operation had $6.2bn in assets and $5.9bn in liabilities at 30 June and would be included in its third quarter results “when we will recognise an estimated pre-tax loss on disposal of $0.1bn”.
“The transaction, which remains subject to regulatory approval, is expected to complete in early 2026,” HSBC continued.
“Upon completion, foreign currency translation reserve losses, which stood at $0.2bn at 30 June 2025, will recycle to the income statement,” it added.
£140m raised, 230 staff to transfer
Last week, Chesnara raised £140m towards the £260m purchase through a share rights issue which received 88% take-up.
Earlier this month Health & Protection revealed that Chesnara was considering the possibilities of retaining the protection insurance new business operations of HSBC Life when it takes over the firm.
Around 230 staff will transfer and Health & Protection also understands that includes HSBC Life (UK) CEO Mark Hussein.
Sources close to the deal told Health & Protection that aside from a small crossover period it is expected that the Countrywide Assured and Chesnara Group brands will be used for the business.
Previously, advisers told Health & Protection they would miss HSBC Life’s immediate decision process and its dual approach to critical illness cover should it be closed to new business.