HSBC Holdings plc has announced that its indirect wholly-owned subsidiary, HSBC Insurance (Asia-Pacific) Holdings Limited, has entered into a share purchase agreement with Allianz Asia Holdings Pte. Ltd. to sell the entire issued share capital of HSBC Life Insurance (Singapore) Private Ltd. (HSBC Life Singapore) for a total consideration of S$2.7 billion (US$2.1 billion).

HSBC Life Singapore is a leading insurer in the city-state, offering a comprehensive range of life and health insurance products. The transaction is subject to approval from the Monetary Authority of Singapore and is expected to be completed in the first half of 2027.

Upon completion, Allianz will own HSBC Life Singapore and intends to retain all existing employees. The parties will work closely to ensure a smooth transition for both colleagues and clients.

Following the sale, HSBC Bank (Singapore) Limited, another indirect wholly-owned subsidiary of HSBC Holdings, will enter into an exclusive 15-year bancassurance distribution agreement with HSBC Life Singapore (which will be renamed post-completion). Under this agreement, HSBC Bank Singapore will exclusively distribute HSBC Life Singapore's insurance products to its retail banking and wealth management clients in Singapore.

In exchange for the exclusive distribution rights, HSBC will receive an initial upfront cash payment of S$200 million (US$150 million) from Allianz. This payment, along with additional contingent consideration based on performance under the agreement, will be recognized in the income statement over the term of the distribution agreement.

The sale is expected to generate a pre-tax gain of approximately US$1.8 billion on HSBC's consolidated accounts. The decision to sell follows a strategic review of HSBC Life Singapore, which concluded that divesting the business represents the best outcome for all parties involved.

This transaction is part of HSBC Holdings' broader strategy to streamline its business structure, focusing on areas where it has a clear competitive advantage and can best drive growth and serve clients, thereby enhancing its leadership position and market share.

HSBC remains committed to supporting Singapore's development as an international wealth management and wholesale banking hub. Singapore remains strategically important to HSBC's overall plan and is a key focus for the Group's investment and growth.