Exploration of New Opportunities in Hong Kong’s Market
TROOPS Inc, a diversified conglomerate based in Hong Kong, is actively exploring avenues to broaden its footprint in the city’s insurance and property management domains through two strategic initiatives. The company announced on March 24 that it has initiated preliminary due diligence on a potential acquisition of a Hong Kong-based insurance brokerage.
Although the discussions are in progress, TROOPS made clear that the process is currently in its initial stages, with no binding agreements finalized yet. The aim of this evaluation is to enhance the company’s service portfolio in Asia’s dynamic insurance market, contingent upon standard due diligence, final negotiation terms, and the necessary regulatory approvals.
Insights into Hong Kong’s Insurance Market
This strategic move comes as Hong Kong’s insurance market continues to show robust growth. According to the Insurance Authority, the total gross premiums for the first three quarters of 2024 amounted to HK$480.8 billion. Notably, new office premiums for long-term policies—excluding retirement schemes—reached HK$169.6 billion, reflecting a 15.7% rise compared to the same period in 2023.
The majority of new long-term policies were derived from non-linked individual business, with HK$162 billion in new premiums. Within this, HK$141.4 billion came from participating policies and HK$20.7 billion from other non-linked products. Conversely, linked individual business saw a decline of 19.7%, totaling HK$7.2 billion in new premiums.
Revenue from in-force long-term policies escalated to HK$405.8 billion, marking an 8.3% increase. Non-linked policies contributed HK$358.4 billion to this figure. Additionally, retirement schemes generated HK$25.5 billion in revenue, a 14% rise, while linked business decreased to HK$16.8 billion.
Meanwhile, general insurance premiums during the same timeframe reached HK$75 billion, with net premiums at HK$51.7 billion. Claims paid out amounted to HK$38.4 billion, and the sector recorded an operating profit of HK$6.7 billion. Direct business in general insurance was led by accident and health policies at HK$18 billion, followed by general liability at HK$9.4 billion, property damage at HK$5.1 billion, and motor vehicle insurance at HK$4.2 billion.
Strategic Acquisition in Property Management
In a concurrent development, TROOPS is on the verge of finalizing an acquisition agreement with Bestfaith International Technology Limited, a property services firm delivering telecommunications infrastructure and fibre-optic support to over 200 buildings in Hong Kong. This transaction, subject to regulatory and board approvals, would enable TROOPS to establish a significant presence in building operations, maintenance, and tenant service management.
The company highlighted that these strategic moves align with its broader business objectives. “Acquiring Bestfaith would position TROOPS as a significant entity in the region’s property management industry, while the potential purchase of the insurance brokerage would not only boost revenue but also create cross-selling opportunities between its property management and insurance service divisions,” it stated.
Currently, TROOPS Inc is active in mortgage lending, property investment, and financial technology services, including managing a digital financial marketplace.
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