HSBC Holdings has agreed to sell its Singapore life and health insurance business, HSBC Life (Singapore), to Germany's Allianz for S$2.7 billion, or $2.09 billion. The disposal is expected to generate a pre-tax gain of $1.8 billion for HSBC and add up to 15 basis points to its Common Equity Tier 1 ratio. As part of the deal, HSBC Bank (Singapore) and HSBC Life (Singapore) will enter an exclusive 15-year bancassurance distribution agreement, with HSBC receiving an initial lump sum payment of S$200 million from Allianz. Allianz said the combined consideration for the acquisition and distribution agreement is €2 billion, or $2.27 billion, and it expects a double-digit return on investment in the medium term. Completion is expected in the first half of 2027, subject to regulatory approval.
Allianz SE VNA O.N.Allianz acquires HSBC Life Singapore for €2B, expects double-digit ROI in medium term.
HSBC Holdings PLCHSBC sells Singapore life insurance arm for $2.09B, expects $1.8B pre-tax gain and 15bps CET1 ratio improvement.
Allianz SEAllianz acquires HSBC Life Singapore for €2B, expects double-digit ROI in medium term.