HSBC agrees to US$2 billion deal to sell Singapore insurance branch to Allianz
Allianz is set to buy the bank’s Singapore insurance arm, entering a 15-year distribution pact as HSBC streamlines its global operations
HSBC has agreed to sell its Singapore life and health insurance business to Germany’s Allianz for S$2.7 billion (US$2.08 billion), with the deal expected to be completed in the first half of 2027, HSBC Group announced on Friday morning before the start of trading.
The disposal is expected to generate a pre-tax gain of US$1.8 billion and boost HSBC’s common equity tier 1 ratio by up to 15 basis points, the bank said.
As part of the deal, HSBC Singapore will enter a 15-year exclusive bancassurance distribution agreement with Allianz, receiving an initial S$200 million cash payment for distributing insurance products to its retail and high-net-worth clients.
Completion remains subject to regulatory approval. If finalised, Allianz will own HSBC Life Singapore and retain all of its employees.
The sale marks a reversal of HSBC's approach to its Singapore insurance business. HSBC’s insurance arm expanded in Singapore in 2022 when it purchased French rival AXA for US$575 million, consolidated more than 600,000 active policies covering life and death, health and property in Singapore, the bank said in the 2021 acquisition announcement.