ZURICH HSBC HSBA.L said on Wednesday it had agreed to sell its UK pensions business to ReAssure, owned by Swiss Re SRENH.VX, but will continue to manage the business's assets.
HSBC will sell the business's corporate and individual pensions policies and an associated annuities book, it said. At the end of 2013, the underlying assets of the business were valued at 4.2 billion pounds ($7.1 billion).
Some 4 billion pounds of those assets were managed by HSBC Global Asset Management and will continue to be under a new contractual arrangement. The deal is subject to regulatory approvals and is expected to complete in the second half of 2015.
HSBC is looking to cut costs by exiting non-core businesses.
(Reporting by Matt Scuffham; Editing by Laura Noonan)