Deal includes a 15-year bancassurance pact and is expected to boost HSBC’s CET1 ratio by up to 15 basis points.
HSBC Holdings will sell its Singapore life and health insurance arm, HSBC Life (Singapore), to Allianz for $2.09bn. The transaction includes an exclusive 15-year bancassurance agreement, allowing HSBC to distribute Allianz products to its retail and wealth clients in Singapore.
HSBC Life (Singapore) reported a pre-tax profit of $118m in 2025. The deal is expected to generate a pre-tax gain of $1.8bn for HSBC, with an initial $200m lump sum payment from Allianz upon completion. The disposal will also enhance HSBC’s consolidated Common Equity Tier 1 ratio by up to 15 basis points.
All employees of HSBC Life (Singapore) will retain their positions under the new ownership. The transaction aligns with HSBC’s strategic review of its insurance operations.