Allianz SE has emerged as the frontrunner to acquire HSBC Holdings Plc's Singapore insurance unit, people familiar with the matter said.
The German insurer is the likeliest buyer for HSBC Life Singapore Pte after outbidding other industry players, according to the people, who asked not to be identified because the information is private.
Allianz and HSBC are finalizing details of a transaction that could be announced soon, the people said. HSBC was seeking a valuation of as much as $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 spokesperson 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 it is crucial to its strategy and a key focus for investment and growth, the spokesperson added, declining to comment further.
Adding the business would make Singapore one of the biggest markets in Allianz's life and health segment in Asia, said Bloomberg Intelligence analyst Steven Lam. "Singapore's life insurance market is on a robust path, and we expect new premiums to rise by at least 15% this year with strong wealth management appeal and protection demand, despite market disruptions in the first quarter due to the Iran war," he said.
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 ($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
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 $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.
HSBC shares rose 1.8% Monday morning, advancing for a third day in Hong Kong, where the stock is up 19% this year. The Hang Seng Index is down 3% in 2026.
