HSBC Argentina Holdings S.A. and HSBC Participaciones (Argentina) S.A. agreed to sell 99,73% of the capital stock of its insurance company HSBC La Buenos Aires Seguros S.A. to the Australian QBE Holdings (Americas) Pty Limited.

The closing of the transaction is subject to satisfaction of a series of conditions precedent, including the approval of the National Insurance Superintendence (Superintendencia de Seguros de la Nación).

This sale is part of a global process of sale of the general insurance business and property faced by HSBC which includes the sale of these business units not only in Argentina but also in other jurisdictions such as Hong Kong (also to QBE), Mexico and Singapore (these last two to the AXA insurance group). The total amount that QBE will pay HSBC for the purchase of the business units in Argentina and Hong Kong rises to US$784m (net asset value US$189m).

HSBC will continue to operate in Argentina through its life insurance and annuities business units, considered very important to the global group and strengthening its presence in the banking markets.

This acquisition permits QBE to position itself among the leading insurance companies in the local market. QBE Insurance is one of the twenty major insurance groups worldwide and has been present in Argentina since 2001 operating in the field of occupational risks and incipiently in the general insurance industry.

The transaction also includes holding a distribution agreement for 10 years for the supply of general insurances of La Buenos Aires Seguros to the customers of HSBC Bank Argentina S.A.

In Argentina, HSBC was legally advised by Bruchou, Fernández Madero & Lombardi, through partner Hugo N. L. Bruzone and senior associates Matías López Figueroa and Jorge L. Garnier, and associates Juan Manuel Chiesa, Francisco J. Lanusse and Martín Calatrava. Senior associate Leandro J. Caputo intervened in regulatory insurance matters and tax matters were addressed by partner Matías Olivero Vila and associate Santiago Oscar Zebel.

A very important role in Argentina was played by Legal Affairs Manager and Company Director, Mr. Miguel Estevez.

Regional assessment (needed under the global framework inherent to the sale) was conducted by Machado Meyer Sendacz Opice through partner Eduardo Avila de Castro and Camila Borba Lefevre, and associates Pedro Corbucci Caldeira Nasi and Thais de Gobbi.

Global assessment was conducted by Clifford Chance LLP through partners Timothy Page and Lee Taylor, and associates Mark Hultum, Derek Hung, Rebecca Goldie and Hugo Laing from their offices in London and Hong Kong.

Locally QBE Holdings (Americas) Pty Limited was legally advised by Allende & Brea, through partner Pablo Louge and associate Eugenia Cyngiser.