FTSE 100 HSBC has agreed to sell its health and life insurance business to German insurance giant Allianz for $2.1bn (£1.6bn) as it refocuses its strategy on Singapore’s wealth management.
The banking giant agreed to sell its Singapore business to Allianz in a transaction that is expected to be completed in the first half of 2027, subject to regulatory approval.
HSBC and the German insurance group will enter a 15-year partnership upon the deal’s completion, which will see the London-listed bank continue to sell insurance to its retail banking and wealth clients in Singapore, but it will be owned and underwritten by Allianz.
The deal is expected to generate a pre-tax gain of £1.4bn for HSBC, while the bank will also receive an additional £150.1m upfront payment. The sale follows HSBC’s strategic review, which determined this deal would be the “best outcome” as part of the bank’s ongoing “simplification” of its group business.
HSBC focus on trimming its business
Chief executive Georges Elhedery, who took charge of the bank in 2024, has moved swiftly to overhaul its operations upon launching a major restructuring plan in October 2024. The bank had aimed to achieve £1.1bn in annual cost reductions by the end of 2026, but accomplished this ahead of schedule in June.
