Allianz SE agreed to buy HSBC Holdings plc’s Singapore insurance business for $2.7 bn, giving the German insurer a larger footprint in one of Asia’s wealth and insurance hubs.
The companies also signed a 15-year exclusive distribution partnership. Under the agreement, Allianz will provide insurance and related solutions to HSBC customers in Singapore.
The acquisition signals confidence in Singapore’s wealth-management growth, Bloomberg Intelligence analyst Steven Lam wrote Friday. He said new annual premium equivalent in Singapore is set to rise by at least 15% in 2026.
The deal also gives Allianz a cleaner path back into Singapore after its failed 2024 attempt to buy a majority stake in Income Insurance Ltd. That offer was valued at about $2.2 bn before Allianz withdrew it.
Adding HSBC’s Singapore insurance business would make the city-state one of Allianz’s largest life and health markets in Asia, Lam had previously said.
Allianz said the enlarged Singapore presence improves its standing in one of Asia’s most attractive insurance markets and financial centres.
For HSBC, the sale fits a broader simplification plan under CEO Georges Elhedery. The bank has been cutting management layers, jobs and businesses as it reshapes the group.
The London-based lender said it expects the disposal to generate a pretax gain of $1.8 bn, equal to about $2.33 bn. HSBC also said it remains committed to Singapore.
The transaction is expected to close in the first half of 2027, pending regulatory approvals.
