HSBC Holdings has agreed to sell its Singapore life and health (L&H) insurance business, HSBC Life (Singapore) (HSBC Life SG), to Germany’s Allianz for S$2.7bn ($2.09bn).
Under the deal, HSBC Insurance (Asia-Pacific) Holdings, an indirect wholly owned subsidiary of HSBC, will sell 100% of the issued share capital of HSBC Life SG to Allianz Asia.
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HSBC Life SG provides L&H insurance products and reported profit before tax of S$118m in 2025.
As part of the transaction, HSBC Bank (Singapore) and HSBC Life SG will enter into an exclusive 15-year bancassurance distribution agreement on completion.
Under that arrangement, HSBC will continue distributing the insurer’s products to its retail banking and wealth customers in Singapore.
HSBC will receive an initial lump sum payment of S$200m from Allianz when the distribution agreement is entered into.
This will be recognised in the income statement over the term of the agreement, together with variable consideration linked to performance.
HSBC said the disposal is expected to generate a pre-tax gain of $1.8bn for the group.
This is set to be recognised largely on completion and classified as a material notable item.
The transaction is also expected to add up to 15 basis points to the group’s consolidated Common Equity Tier 1 ratio following the subsequent upstreaming of the distributable gain.
All HSBC Life SG employees will remain employed by the company after the change of ownership.
HSBC said the transaction follows a strategic review of HSBC Life SG and is part of the broader simplification of the group as it focuses on markets where it holds a “competitive advantage”.
The bank also said it remains committed to Singapore as an international wealth and wholesale banking hub.
For Allianz, the acquisition and distribution agreement have a combined consideration of €2bn ($2.27bn), and the insurer expects a double-digit return on investment in the medium term.
Allianz CEO Oliver Bäte said: “Singapore serves as our Asia-Pacific headquarters and is central to our global growth strategy. Singapore is a forward-thinking, globally connected and resilient market, and is a nation that cares deeply about the well-being of its people.
“Allianz’s expansion in Singapore underscores our resolve to help more people meet their protection, health, retirement and wealth needs globally.”
The agreement extends an existing distribution partnership of more than ten years between Allianz and the HSBC Group across Asia-Pacific and gives Allianz access to HSBC Singapore’s established client base.
HSBC Life SG generated operating profit of €80m in 2025 and has comprehensive equity of €1.2bn.
Completion is expected in the first half of 2027 (H1 2027), subject to regulatory approval.
