Global Market: HSBC to sell Singapore insurance business to Allianz in $2.09 billion deal

HSBC is selling its Singapore insurance business to Allianz in a deal worth around $2.09 billion, expected to generate a pre-tax gain of about $1.8 billion and improve HSBC's CET1 ratio by up to 15 basis points. The deal, expected to close in early 2027, includes a 15-year bancassurance distribution agreement under which HSBC will distribute Allianz insurance products in Singapore, with Allianz making an upfront payment of S$200 million. The divestment is part of HSBC's broader strategy to simplify its global operations, while it continues to expand its overall insurance and Asian wealth businesses.