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HSBC Begins Strategic Review of Singapore Life-Insurance Unit

The move fits CEO Georges Elhedery’s push to streamline the bank’s portfolio.

Overview

  • The review covers HSBC Life (Singapore) and will consider all options for the insurance manufacturing business, with no decision announced.
  • The bank says Singapore remains a priority market and it will keep offering insurance products while accelerating wealth and wholesale banking growth.
  • The step forms part of CEO Georges Elhedery’s ongoing simplification drive that has included selling the UK life arm and winding down some M&A and equities activities.
  • HSBC shares rose as much as 1.6% in Hong Kong after the announcement, while Bloomberg Intelligence expects strong bidder interest if a sale proceeds.
  • HSBC expanded in Singapore by buying AXA Singapore in 2022, and recent life-insurance deals in the city have drawn close scrutiny, including Allianz’s abandoned bid for Income and Sumitomo’s stake purchase in SingLife.