Insurtech CXA to sell brokerage business in Singapore, Hong Kong – AIR

CXA Group Pte. Ltd. intends to sell its brokerage business in Singapore and Hong Kong to Pacific Prime Insurance Brokers Ltd. for an undisclosed value, Asia Insurance Review reported.

The move is part of CXA's restructuring efforts as it aims to shift its focus to its enterprise software-as-a-service business that raked in 70% of its revenues in 2020. The brokerage business was responsible for the remaining 30% of its revenues.

CXA, which is expected to become profitable by 2023, will no longer need to secure additional funding following the sale of its brokerage arm, founder and CEO Rosaline Chow Koo said.

The company intends to use the proceeds from the sale to fund its expansion efforts across Asia and Europe. CXA will also use the proceeds to support banks, insurers and payroll companies using its benefits and health and wellness platform.