HSBC sells Singapore insurance arm to Allianz for $2.1bn

Published Jul 24, 07:35 AM UTC

HSBC has agreed to sell its health and life insurance business in Singapore to German insurer Allianz for $2.1bn (£1.6bn), as part of CEO Georges Elhedery's strategy to simplify the bank and focus on wealth management. The deal, expected to close in the first half of 2027 pending regulatory approval, includes a 15-year partnership where HSBC will continue selling insurance to its retail and wealth clients in Singapore, but policies will be owned and underwritten by Allianz. HSBC anticipates a pre-tax gain of £1.4bn and an additional £150.1m upfront payment. The sale follows HSBC's strategic review and ongoing cost-cutting, which has already achieved £1.1bn in annual savings ahead of schedule. For Allianz, the acquisition provides a second entry into Singapore's insurance market after its $2.2bn bid for Income Insurance was blocked by Singapore's parliament in 2024. Allianz expects the deal to generate double-digit returns in the medium term.