【Singapore】HSBC considers selling Singapore insurance business: sources

[SINGAPORE] HSBC Holdings is exploring options for its insurance unit in Singapore, including a sale, people familiar with the matter said, following other business revamps globally under CEO Georges Elhedery.

The bank and a financial adviser are working on a review of HSBC Life (Singapore), which could be valued at more than US$1 billion in a transaction, the people said, asking not to be identified because the information is private. Other insurers and investment firms have shown early interest, they noted.

Considerations are preliminary, and no final decision has been made, the people added.

HSBC’s Singapore insurance business includes life and critical illness, savings, personal accident and health. The bank has expanded its insurance presence in Singapore organically and via acquisitions, including the purchase of AXA Insurance for US$529 million in 2022.

There have been several insurance deals in South-east Asia in recent years, including Chubb’s acquisition of Liberty Mutual Holding’s businesses in Thailand and Vietnam.

Sumitomo Life Insurance purchased Singapore Life Holdings in 2024, and others including FWD Group Holdings have been active in the region.

In late 2024, Allianz SE withdrew an offer to buy a majority stake in Singapore’s Income Insurance – a blow to its ambitions in a key growth market.

A sale would follow other HSBC disposals in Europe and North America. Last year, the bank agreed to sell its UK life insurance business to Chesnara and its custody business and private banking operations in Germany. It also sold its French life insurance unit.

Elhedery has undertaken the biggest overhaul of HSBC in at least a decade, reorganising it into four divisions and exiting some businesses. Last week, minority shareholders of Hang Seng Bank voted in favour of HSBC’s US$14 billion buyout.