Wesco Insurance Company

HSBC Holdings PLC
24 March 2006


            HOUSEHOLD INSURANCE GROUP SELLS WESCO INSURANCE COMPANY


Household Insurance Group Holding Company Inc., an indirectly-held, wholly-owned
subsidiary of HSBC North America Holdings Inc., has reached agreement with
AmTrust Financial Group, Inc. to sell Wesco Insurance Company, a property and
casualty company.

The transaction is subject to regulatory approval. The sale price is 
US$7.5 million, plus Wesco's statutory capital and surplus at closing which 
will be approximately US$15 million. Closing is expected on or before 1 June 
2006.

Notes to editors:
1. Wesco Insurance Company and Household Insurance Group Holding Company Inc.
Wesco is a subsidiary of Household Insurance Group Holding Company Inc. It is a
property and casualty company providing mainly credit protection products to
HSBC customers.

Household Insurance Group Holding Company Inc. is a subsidiary of HSBC Finance
Corporation, itself a subsidiary of HSBC North America Holdings Inc. Household
Insurance Group offers and administers a broad range of insurance products
across North American businesses for domestic and international customers. The
business is a mix of manufactured and broker protection products, sold through
the various HSBC business channels.

2. HSBC North America Holdings Inc.
HSBC North America Holdings Inc. comprises all of HSBC's US and Canadian
businesses, including the former Household International businesses. The
company's businesses serve more than 60 million customers in five key areas:
personal financial services, consumer finance, commercial banking, private
banking and corporate, investment banking and markets. Financial products and
services are offered under the HSBC, HFC and Beneficial brands. For more
information, visit: www.hsbcusa.com.

3. HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 9,500
offices in 76 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa. With assets of US$1,502 billion at 
31 December 2005, HSBC is one of the world's largest banking and financial 
services organisations. HSBC is marketed worldwide as 'the world's local bank'.


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