The Hong Kong division of DirectAsia was established in 2012. It generated US$8 million of GWP in 2015, serves 29,000 customers and employs 40 people. Its primary business is motor, with ancillary lines in travel. As a direct-to-consumer insurance provider supported by call centres, it is a differentiated model in a market where agent-based channels predominate.
Its new owner, Well Link Group Holdings Limited, is backed by an investor group with interests in insurance broking, corporate and customer finance, securities and futures brokerage, and asset management. Its acquisition of the Hong Kong division of DirectAsia will complement its existing businesses and provide it with broader product opportunities.
Bob Thaker, Managing Director, DirectAsia Group, commented: "The Hong Kong division of DirectAsia is a business with a great team and a distinctive business model, which has grown its premium income strongly since launch. However the focus for DirectAsia is on our core Singapore and Thailand markets where we see significant growth opportunities, and this transaction allows us to focus our energy and investment on those markets. Well Link is a great fit in terms of values and culture for the people and customers of the Hong Kong business unit, and this transaction gives them an attractive platform for growth in the region."
A representative from Well Link, added: "We welcomed the opportunity working with the current DirectAsia team to make it another successful business of our group. It is an important step towards our group's long-term ambition to build a successful finance business in this region."
Customers in Hong Kong will continue to be served as normal by the business, and need take no action as a result of this announcement. Following completion of the transaction, Well Link will have the right to use the DirectAsia brand in Hong Kong for a maximum period of 12 months.
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