BERLIN: Allianz Group said Friday it has agreed to acquire HSBC’s Singapore life insurance unit for 2.7 billion Singapore dollars ($2.09 billion), expanding the German insurer’s footprint in Asia’s life and health insurance market.
The transaction, expected to close in the first half of 2027, will see Allianz take full ownership of HSBC Life Singapore, a business that generated operating profit of 80 million euros ($91 million) in 2025, according to reports.
As part of the deal, Allianz will enter a 15-year exclusive bancassurance distribution partnership with HSBC Singapore, building on more than a decade of collaboration between the two companies in the Asia-Pacific region. HSBC will receive an initial S$200 million lump sum payment as part of the distribution agreement.
The acquisition represents a rare opportunity to gain scale in Singapore’s insurance market, which Allianz described as backed by strong fundamentals including steady economic growth, robust regulation, substantial savings wealth and a rapidly aging population. The company expects to generate a double-digit return on investment in the medium term.
“With the expansion of our presence in Singapore, we reaffirm our promise to be there for more people around the world when it comes to protection, health, retirement and wealth,” said Oliver Bäte, CEO of Allianz SE.
Renate Wagner, a member of the Allianz board of management, said the company aims “to support more individuals and communities even more comprehensively, with a broader product portfolio that helps protect and plan for what matters most to them”.
For HSBC, the sale is part of Chief Executive Georges Elhedery’s broader strategy to simplify the bank’s operations and redeploy capital to businesses and markets where it sees stronger returns, while preserving Singapore as a key wealth and wholesale banking hub. The disposal is expected to generate a pre-tax gain of about $1.8 billion for HSBC and improve the group’s Common Equity Tier 1 ratio by up to 15 basis points.
HSBC built its insurance presence in Singapore in 2022 when it acquired AXA Insurance’s Singapore business for $529 million. Allianz has operated in Singapore for more than 25 years and the acquisition expands its position in one of Asia’s most attractive insurance markets.
Completion of the transaction remains subject to regulatory approval from the Monetary Authority of Singapore. All employees of HSBC Life Singapore will remain with the business following the acquisition.
