Allianz announced on Friday that it has agreed to acquire HSBC's Singapore life insurance business for S$2.7 billion (approximately US$2.09 billion), thereby expanding its footprint in the Asian life and health insurance market.

The German insurance giant anticipates a double-digit return on investment over the medium term, with the transaction expected to be completed in the first half of 2027. As part of the deal, Allianz will also enter into a 15-year exclusive distribution partnership with HSBC Singapore, strengthening its business connections in the region.

Friday's announcement underscores the German insurer's commitment to expanding its operations in Singapore. The company stated that the market has strong fundamentals, including stable economic growth and a sound regulatory environment.

Renate Wagner, a member of the Allianz Board of Management, said: "We are dedicated to providing more comprehensive support to more individuals and communities with a broader product portfolio, helping them protect and plan for what matters most."

In 2025, HSBC Life Singapore achieved an operating profit of €80 million (approximately US$91 million).