HSBC has agreed to sell its Singapore insurance business to Allianz for $2.1bn as part of a global restructuring led by CEO Georges Elhedery.

The bank said it remains committed to Singapore, a key wealth hub and its fifth‑largest profit contributor. The transaction is expected to close in the first half of 2027, pending regulatory approval, and will net HSBC a pre‑tax gain of $1.8bn, lifting its common equity tier 1 ratio by 15 basis points.

The sale reverses HSBC’s 2022 purchase of Axa’s Singapore operation for $529mn, which aimed to make the bank “Asia’s leading insurance and wealth provider.” Under Elhedery, HSBC is streamlining its sprawling global footprint.

As part of the deal, HSBC and Allianz will enter a 15‑year distribution agreement; HSBC will sell Allianz products and receive an initial $200mn cash payment. HSBC shares dipped 1% on Thursday but have risen 28% this year, valuing the lender at £262bn.