Hong Kong-based AMTD Group, which is backed by China Minsheng Investment, LR Capital, and Morgan Stanley, is planning to list its corporate insurance brokerage arm next year to help fund acquisitions and pave the way for a possible group listing.
The insurance unit provides advice on property damage insurance, motor vehicle insurance, and employee insurance to large corporations, including Li Ka-shing’s CK Hutchison, which accounted for half of its revenue last year.
According to a document obtained by FinanceAsia, the gross earnings of the insurance unit were about HK$38 million ($4.9 million) in 2015, when revenue totaled HK$47 million.
For 13-year-old AMTD, which started out as an independent financial advisor, the planned stock market flotation of its insurance arm next year could bolster its war chest for acquisitions elsewhere in the region and in developed markets too. In addition to its insurance and retail-focused IFA businesses, the group has asset management and investment banking operations, its largest by revenue.
