Cash boost not enough to save UK insurance arm
HSBC pumped £110m into HSBC Insurance (UK) before putting it into run-off, Insurance Times can reveal.
It had previously been reported that the bank gave an £80m cash injection to the insurer in April. It has now emerged that a payment of £30m was made at the end of 2008.
An HSBC spokesman said: “The insurance business has never been under-reserved. The HSBC Group will, from time to time, inject capital into different businesses. This is normal and sensible business practice.”
HSBC put the motor underwriting business into run-off following the collapse of sales talks with IAG, led by UK chief executive Neil Utley.
Read the full story: A time to kill