HSBC is considering options for its Singapore insurance unit, including a potential sale, as part of the bank’s ongoing global restructuring under CEO Georges Elhedery.
People familiar with the matter said HSBC, together with a financial adviser, is reviewing its insurance arm, HSBC Life (Singapore) Pte Ltd, which could be valued at over US$1 billion (around RM4 billion) in a transaction. Several insurers and investment firms have reportedly expressed early interest, though no final decisions have been made.
HSBC declined to comment but reaffirmed Singapore’s importance as a key wealth and wholesale hub, emphasizing its strategic focus on investment and growth in the market.
HSBC Life (Singapore) offers a range of products, including life and critical illness coverage, savings plans, personal accident, and health insurance. The bank has grown the business both organically and through acquisitions, including its US$529 million purchase of AXA Insurance Pte Ltd in 2022.
The potential sale follows a wave of insurance deals in Southeast Asia, such as Chubb’s acquisition of Liberty Mutual’s units in Thailand and Vietnam, and Sumitomo Life Insurance’s purchase of Singapore Life Holdings Pte Ltd in 2024. Other regional players like FWD Group have also been active.
This move would be in line with HSBC’s broader divestment strategy in recent years. The bank has sold several European and North American operations, including its UK life insurance business to Chesnara plc, its German custody and private banking units, and its French life insurance operations.
Under Elhedery, HSBC is undergoing its most significant overhaul in over a decade, reorganizing into four divisions and exiting non-core businesses. The bank recently secured minority shareholder approval to complete its US$14 billion takeover of Hang Seng Bank Ltd, further strengthening its position in Asia.
