HSBC Insurance Services has agreed to sell its underwriting business HSBC Insurance UK to Syndicate Holding Corp for £68.5m.
The UK motor insurer was put into run-off in 2009.
In a statement, HSBC said: "This sale is in line with the five filters strategic criteria for capital deployment set out at HSBC’s Investor Day on 11 May 2011 and it completes HSBC’s exit from underwriting motor insurance in the UK."
The deal is expected to be completed in the third quarter of 2011, subject to regulatory approvals.
Nigel Rogers, chief executive of Syndicate Holding Corp, said: “RITC Syndicate Management Limited, our Lloyd's run-off subsidiary has been very successful since its formation in 2007 in becoming the leading provider of RITC contracts, writing in excess of $800m of run-off business at Lloyd's.”
He added that the deal would provide the platform for the group's future growth in the UK and international companies run-off and legacy markets.
Bruce Howe, chief executive of HSBC Insurance in Europe and the Middle East said: "HSBC Insurance UK has been in run-off for over a year and we are very grateful for the dedication of our staff which has enabled a successful exit from this business.
"Although this move completes our exit from underwriting motor insurance in the UK, we continue to offer motor insurance through the HSBC, first direct and M&S Money brands using chosen third party insurers.”
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