HSBC Holdings (00005) subsidiary plans to sell Singapore life and health insurance business to Allianz for $2.1 billion.

HSBC HOLDINGS (00005) announced that its indirect wholly-owned subsidiary HSBC Insurance (Asia-Pacific) Holdings Limited (the "Seller") has entered into a sale and purchase agreement today with Allianz Asia Holdings Pte. Ltd. (the "Buyer") to sell 100% of the issued share capital of HSBC Life Insurance (Singapore) Private Limited (HSBC Life Singapore) for a consideration of SGD 2.7 billion (USD 2.1 billion) (collectively, the "Sale Transaction"). HSBC Life Singapore is a leading insurance company in Singapore, offering a wide range of life and health insurance products. Subject to obtaining relevant approvals from the Monetary Authority of Singapore, the Sale Transaction is expected to be completed in the first half of 2027. Upon completion of the Sale Transaction, the Buyer will own HSBC Life Singapore and continue to employ all its employees. The parties will work closely together to ensure a smooth transition for colleagues and customers. After completion of the Sale Transaction, HSBC HOLDINGS' indirect wholly-owned subsidiary HSBC Bank (Singapore) Limited (HSBC Bank Singapore) and HSBC Life Singapore (to be fully owned by the Buyer and renamed after completion) will enter into an exclusive 15-year bancassurance distribution agreement ("Distribution Agreement", together with the Sale Transaction, the "Transaction"). Under the Distribution Agreement, HSBC Bank Singapore will exclusively distribute HSBC Life Singapore's insurance products to its retail banking and wealth management clients in Singapore. Upon execution of the Distribution Agreement, HSBC will receive an initial one-time cash payment of SGD 200 million (USD 200 million) from Allianz based on the exclusive terms of the Agreement. This amount will be recognized in the profit and loss statement along with any additional consideration payable based on the Agreement's performance throughout the term. It is expected that the Sale Transaction will contribute USD 1.8 billion in pretax sale profits to HSBC's consolidated accounts. The Transaction is based on a strategic review of HSBC Life Singapore, which concluded that selling the business was the best outcome for all parties involved. The Transaction forms part of HSBC's ongoing business simplification efforts, focusing on areas where the Group has a competitive advantage and can drive growth while serving customers, enhancing its leadership position, and expanding market share. HSBC is committed to supporting Singapore's development as an international hub for wealth management and wholesale banking. Singapore is of utmost importance to HSBC's strategy and is a key area of investment and growth for the Group.