HSBC to Acquire Keppel Ins.

HSBC Holdings PLC
20 December 2002

                        HSBC TO ACQUIRE KEPPEL INSURANCE


HSBC Insurance (Asia-Pacific) Holdings Limited has today entered an agreement to
acquire 100 per cent of Keppel Insurance Pte Limited from its shareholders
Fortis Far East NV, Keppel Capital Holdings Limited and Kephinance Investment
Pte Limited. The aggregate consideration, which is subject to certain
adjustments under the agreement, will be approximately S$150 million
(approximately US$86 million) in cash.

Fortis and Keppel Capital Holdings each currently have an equity interest of 40
per cent in the issued share capital of Keppel Insurance. Kephinance Investment
has an equity interest in the remaining 20 per cent of the issued share capital
of Keppel Insurance.

The acquisition, which is subject to fulfilment of certain conditions precedent
including obtaining approvals from the relevant regulatory authorities, is
expected to be completed in the first quarter of 2003. Keppel Insurance will
then be integrated with HSBC's insurance operations, and the merged operation
subsequently renamed HSBC Insurance (Singapore) Pte Limited.

Keppel Insurance currently has approximately 55,700 individual life policies,
about 82,800 non-life policies and a tied agency sales force of approximately
220 qualified agents. It also offers non-life products and services to some
8,400 small to medium-sized enterprises in Singapore. The company has captured
an estimated 80 per cent of the investment-linked Islamic insurance (Takaful)
market in Singapore, with about S$180 million of Islamic funds under management
as at the end of 2001.

David Eldon, Chairman of The Hongkong and Shanghai Banking Corporation Limited,
said: "Our acquisition of Keppel Insurance will add life insurance and Islamic
insurance products to our current general insurance business in Singapore. We
will also be able to strengthen our sales force to support our wealth management
drive."


Notes to editors

1. Keppel Insurance's existing shareholders

Fortis Far East is a member of the Fortis Group, which is an international
financial services provider active in the fields of insurance, banking and
investment. Fortis is listed on the stock exchanges of Amsterdam, Brussels and
Luxembourg and has a sponsored ADR programme in the US.

Keppel Capital is a subsidiary of Oversea-Chinese Banking Corporation Limited,
which is a listed company on the Singapore Stock Exchange.

Kephinance Investment is a subsidiary of Keppel Corporation Limited, which is a
listed company on the Singapore Stock Exchange.

2. HSBC Group Insurance

The HSBC Group, through its insurance subsidiaries, provides insurance products
and services to both its retail and commercial banking customers. These
insurance products and services include life, protection and investment
business, property and casualty, insurance broking and consultancy, insurance
agency and alternative risk financing services. In 2001, insurance premiums
transacted worldwide by the HSBC Group amounted to US$7.7 billion.

3. HSBC in Singapore

The HSBC Group's history in Singapore dates back to 1877 when its founding
member, The Hongkong and Shanghai Banking Corporation Limited, opened its first
branch. Today, HSBC has 11 branches incorporating five Premier centres and 23
automated teller machines in Singapore, including two at offsite locations. A
qualifying full bank, HSBC in Singapore offers a comprehensive range of services
including personal and commercial banking, investment and private banking,
insurance, forfaiting and trustee services, leasing and securities and capital
markets services.

4. HSBC Holdings plc

The HSBC Group is one of the largest banking and financial services
organisations in the world. The Group has some 8,400 offices in 81 countries and
territories in Europe, the Asia-Pacific region, the Americas, the Middle East
and Africa, and has assets of over US$746 billion at 30 June 2002.


                      This information is provided by RNS
            The company news service from the London Stock Exchange