Allianz said to lead bidding for HSBC’s Singapore insurance unit

SINGAPORE: Allianz SE has emerged as the frontrunner to acquire HSBC Holdings Plc’s Singapore insurance unit, according to people familiar with the matter.

The German insurer is the likeliest buyer for HSBC Life Singapore Pte after outbidding other industry players, the people said, asking not to be identified because the deliberations are private.

Allianz and HSBC are finalising details of a transaction that could be announced soon, the people said. HSBC was seeking a valuation of as much as US$2 billion for the business, people familiar with the matter have said.

Talks are ongoing and no final decisions have been made, the people said, adding that other bidders remain interested in the assets.

A representative for Allianz declined to comment.

A spokesman for HSBC said the Singapore insurance unit is under a strategic review and no decision has been taken. The bank is committed to Singapore as an international wealth and wholesale banking hub, and is also crucial to its strategy and a key focus for investment and growth, the spokesman added, declining to comment further.

Allianz has been seeking to expand in Singapore, but in 2024 withdrew an offer to buy a majority stake in Income Insurance Ltd. for about S$2.2 billion (US$1.6 billion). Its unit Allianz Global Investors is in exclusive talks to buy the asset management division of United Overseas Bank Ltd., people familiar with the matter have said.

HSBC had shortlisted Allianz, Sumitomo Life Insurance Co. and Daiichi Life Group Inc. as bidders for the Singaporean insurance unit. Other insurers including Sun Life Financial Inc. and Nippon Life Insurance Co. were said to be in the frame for the unit previously.

The lender had started a review of the business in January, also saying at the time that Singapore was a priority market.

HSBC completed a US$529 million acquisition of AXA Singapore four years ago, under previous chief executive officer Noel Quinn. His successor, Georges Elhedery, has cut management layers, jobs and businesses. HSBC’s share price has doubled in Hong Kong since Elhedery took over in September 2024.