Jerneh Insurance Hong Kong

HSBC Holdings PLC
25 January 2007


                  HSBC TO ACQUIRE NON-LIFE INSURANCE PORTFOLIO
                        OF JERNEH INSURANCE (HK) LIMITED
                                        
HSBC Insurance (Asia) Limited has entered into an agreement to acquire the
non-life insurance portfolio of Jerneh Insurance (HK) Limited (JIHK). The
portfolio, which has a gross asset value of HK$35.0 million (approximately
US$4.5 million), comprises approximately 10,000 policies in medical, motor,
employee compensation and public liability insurance.

David Fried, CEO of HSBC Insurance (Asia Pacific) Holdings Limited, said: "The
Jerneh Group has made a strategic decision to dispose of its Hong Kong non-life
business. HSBC has a strong presence in the territory and a comprehensive
insurance business. We are well-placed to provide a good continuing service to
Jerneh's customers, who will have access to HSBC's wide range of insurance and
financial services. The portfolio from Jerneh Insurance (HK) will add to our
growing insurance business in the territory."

The acquisition is expected to be completed in the first quarter of 2007.
Completion of the transaction is subject to various conditions including
obtaining regulatory and other approvals.

1. HSBC Insurance (Asia) Limited
HSBC Insurance (Asia) Limited, is a wholly owned subsidiary of HSBC Insurance
(Asia Pacific) Holdings Limited (HSBC Insurance). HSBC Insurance has offices in
the Hong Kong SAR, the Macau SAR, Singapore and Malaysia as well as
representative offices in Beijing, Shanghai and Guangzhou. HSBC Insurance's
total assets stood at HK$80 billion at the end of June 2006.

2. HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 9,500
offices in 81 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa. With assets of US$1,738 billion at 30 June
2006, HSBC is one of the world's largest banking and financial services
organisations.

3. Jerneh Insurance (HK) Limited
Jerneh Insurance (HK) Limited (JIHK), which has been operating in Hong Kong for
over 25 years, is a wholly owned subsidiary of Jerneh Asia Berhad, an investment
holding company listed on the Kuala Lumpur Stock Exchange in Malaysia. Jerneh
Asia Berhad has a 31 per cent interest in HSBC Amanah Takaful (Malaysia) Sdn
Bhd, a joint venture Islamic insurance company in Malaysia launched in August
2005. HSBC and The Employees Provident Fund of Malaysia (EFP) hold a 49 per cent
and 20 per cent interest respectively.




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