Allianz Group (Allianz) and HSBC Holdings (HSBC Group) today announced that Allianz, through its wholly owned subsidiary Allianz Asia Holding, has agreed to acquire HSBC Life Singapore, subject to regulatory approval.
HSBC Life Singapore is a Singapore-incorporated and licensed composite insurer with a strong presence in Singapore’s life and health insurance market.
In addition, Allianz and HSBC Bank (Singapore) (HSBC Singapore) have agreed on a 15-year exclusive distribution partnership under which Allianz will provide protection, health, retirement and wealth solutions to HSBC’s customers in Singapore. The partnership builds on a well-established distribution relationship between Allianz and HSBC Group across Asia, and is expected to commence upon completion of the transaction.
The combined consideration for both agreements totals EUR2.0bn ($2.3bn; S$2.9bn). Of the S$2.9bn, S$2.7bn is for 100% of the issued share capital of HSBC Life Singapore and the remainder for the distribution agreement with HSBC Singapore.
Allianz expects to generate a double-digit return on investment in the mid-term.
The acquisition, which advances Allianz’s strategy to grow and serve more people in Asia, is expected to close in the first half of 2027.
Mr Oliver Bäte, CEO of Allianz SE, 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.”
Allianz expands in Singapore
The transaction and the distribution agreement grow Allianz’s presence and reach in the Singapore market. As a result of the proposed transaction and distribution agreement, customers in Singapore will benefit from greater access to Allianz solutions available globally, allowing them to address their protection, health, retirement and wealth needs across all life stages.
HSBC Group to post US$1.8bn gain on disposal
The disposal is expected to generate a pre-tax gain of $1.8bn for HSBC Group at the consolidated level. On completion of the deal, all employees will continue to be employed by HSBC Life Singapore.
The transaction follows the strategic review of HSBC Life Singapore, which concluded that a sale would be the best outcome for all parties. It forms part of the ongoing simplification of the HSBC Group as it focuses on increasing leadership and market share in the areas where it has a clear competitive advantage and the greatest opportunities to grow and support its clients. HSBC says that it is committed to Singapore as an international wealth and wholesale banking hub.