HSBC has agreed to sell its life and health insurance business in Singapore to Allianz for S$2.7 billion ($2.1 billion), as it trims non-core operations and focuses on its Asian wealth and wholesale banking operations.
Deal Details
The global bank will move to a capital-light bancassurance model in Singapore, allowing it to generate fee income without carrying capital reserves or maintaining underwriting books, in line with its long-term goal of being a leaner wealth manager.
For Germany’s Allianz, the deal offers a second chance to expand in Singapore after it withdrew an offer in 2024 to buy at least 51% of Income Insurance, formerly NTUC Income, following public concern and government intervention.
HSBC said the deal will generate a pre-tax gain of $1.8 billion and boost its common equity tier 1 ratio by as much as 15 basis points.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
