Allianz, Sun Life said to be weighing bids for HSBC Life Singapore
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HSBC started a review of the insurance business in January as part of a global streamlining, saying at the time that Singapore is a priority market and that it would consider all options.
PHOTO: REUTERS
Hong Kong – Allianz and Sun Life Financial are considering bids for HSBC Holdings’ insurance unit in Singapore, according to people familiar with the matter, after the bank announced a strategic review of the business.
Japan’s Dai-ichi Life Holdings and Nippon Life Insurance may also bid for HSBC Life Singapore, the people said. A sale process began in March, and non-binding bids could materialise as soon as the coming weeks, the people said.
Considerations are ongoing, and the companies might decide not to proceed, while other bidders could also emerge, the people added.
Representatives for Allianz, Dai-ichi Life and Nippon Life declined to comment.
A Sun Life spokesperson declined to comment beyond saying the company always seeks opportunities that enhance its scale and capabilities and advance its goals and strategy.
A representative for HSBC said the Singapore insurance unit is under strategic review and that no decision has been taken, declining to comment further.
HSBC started a review of the insurance business in January as part of a global streamlining, saying at the time that Singapore is a priority market and that it would consider all options. A transaction might value HSBC Life Singapore at more than US$1 billion (S$1.28 billion), people familiar with the situation have said.
Reuters reported on Feb 26 that HSBC had started the sale process and was engaging with potential buyers, including Dai-ichi Life and Nippon Life.
HSBC completed a US$529 million acquisition of AXA Singapore four years ago under Mr Noel Quinn, the previous chief executive. His successor, Mr Georges Elhedery, has cut management layers, jobs and businesses. HSBC’s share price has nearly doubled in Hong Kong since Mr Elhedery took over in September 2024. BLOOMBERG
