Allianz buys HSBC Life Singapore for $2.1b

The agreement includes a 15 year exclusive bancassurance partnership through HSBC.

Allianz has agreed to buy HSBC Life Singapore for S$2.7b (US$2.1b), with the transaction expected to complete in the first half of 2027, subject to regulatory approval.  

The deal includes the acquisition of 100% of HSBC Life Singapore, which provides life and health insurance products in Singapore. The combined value of the acquisition and distribution agreement is about US$2.3b (S$2.9b = EUR2.0b). 

Allianz and HSBC Bank (Singapore) will also enter a 15-year exclusive bancassurance partnership, under which HSBC will continue to distribute the insurer's protection, health, retirement and wealth products to its retail banking and wealth customers.  

HSBC said it will receive an initial lump sum payment of S$0.2b (US$0.2b) when the distribution agreement begins. 

The payment will be recognised in its income statement over the life of the agreement, alongside additional performance-based payments. 

The bank expects the sale to generate a pre-tax gain of about S$2.3b (US$1.8b) and increase its Common Equity Tier 1 (CET1) ratio by up to 15 basis points. 

The transaction follows a strategic review of HSBC Life Singapore, with the bank saying the sale supports its plan to simplify the business and focus on areas where it sees stronger growth opportunities. 

HSBC said Singapore remains a key market for its wealth and wholesale banking business. 

The bank added that all employees of HSBC Life Singapore will remain with the business after the acquisition, and both companies will work together to ensure a smooth transition for staff and customers. 

For Allianz, the acquisition expands its presence in Singapore's life and health insurance market and builds on its existing bancassurance partnership with HSBC across Asia, which began in 2013. 

(US$1.00 = S$1.29 = EUR0.88)