SINGAPORE – German insurer Allianz is seeking to build a leading wealth management and retirement business in Singapore through its acquisitions of HSBC Life Singapore and UOB Asset Management, less than two years after its attempt to take control of Income Insurance fell through.
Allianz chief executive Oliver Bate said during the company’s second-quarter earnings call on Aug 7 that it views life insurance and asset management as two components of an integrated wealth management and retirement offering in an important market.
Bate noted that Allianz has been working to strengthen its presence in South-east Asia for “more than a decade”, and that the two Singapore acquisitions are part of a “grand design” by the insurer to establish a stronger position for future growth in the region.
“We are systematically working on growth and we are happy that it is working. But these two acquisitions are only the beginning, not the end of the work,” he said.
He added that Allianz is keen to expand its presence in Singapore because “strategically, one of the things we missed 20 years ago was establishing a (business) presence here. We are closing that gap as we speak”.
Allianz has operated a regional office in Singapore since 1998, but did not have a major local commercial and retail business.
Asked why Allianz was making the acquisitions only now, Bate said the group had sought to expand in Asia for years, but previously found acquisition prices too high relative to the potential value of the deals.
“But we have now found now two opportunities where we believe the synergies are such that we can justify the investments.”
Allianz announced on July 24 that it will acquire HSBC Life Singapore and offer protection, health, retirement and wealth solutions to the bank’s customers in Singapore under a 15-year exclusive distribution agreement.
It is paying $2.7 billion for the acquisition and distribution agreement, with the transaction expected to close in the first half of 2027.
This agreement adds to similar deals with HSBC in five other markets.
Bate noted that HSBC Life was not merely a bancassurance operation, as it also distributed products through insurance agents and independent financial advisers.
Two weeks after announcing the HSBC Life deal, Allianz Global Investors (Allianz GI) agreed to acquire UOB Asset Management for $555 million.
The move covers United Overseas Bank’s asset management franchise across Singapore, Brunei, Indonesia, Japan, Malaysia, Taiwan, Thailand and Vietnam.
UOB Asset Management has been part of the UOB Group for 40 years and had about $42 billion in assets under management on Dec 31, 2025.
The deal also includes a 10-year distribution partnership under which UOB will offer investment products managed by AllianzGI to its customers in Singapore and other South-east Asian markets.
Following the acquisition, Asia will account for more than one-third of AllianzGI’s assets under management.
Bate said Singapore has become an important global wealth hub, with wealthy individuals from regions such as the Middle East and India choosing to invest through the Republic because of its strong rule of law and financial infrastructure.
The two acquisitions mark Allianz’s renewed effort to expand in Singapore after the Government blocked its proposed $2.2 billion acquisition of a majority stake in Income Insurance in 2024, citing concerns that the insurer might no longer be able to fulfil its social mission of providing affordable insurance.
Changes were subsequently made to the Insurance Act to give the Government greater oversight of deals involving insurers linked to cooperatives, and Allianz withdrew its offer in December 2024.
