Allianz SE (ALVG.DE) Announced acquisition of HSBC Life Singapore and 15 year distribution agreement

Equity Research 24 July 2026 | 7:41AM BST

Allianz SE (ALVG.DE): Announced acquisition of HSBC Life Singapore and 15-year distribution agreement

Allianz has announced: 1) the acquisition of HSBC Life Singapore, and 2) that it will Andrew Baker, CFA | enter into an exclusive 15-year distribution partnership under which Allianz will Goldman Sachs International provide protection, health, retirement and wealth solutions to HSBC’s customers in Vash Gosalia, CFA Singapore (see here). The combined consideration for both agreements is €2bn, with | Allianz targeting a double-digit ROI over the medium term and closing expected in Goldman Sachs International

1H’27. HSBC Life Singapore has the #7 position in Singapore Life (5% market share) Alice Palumbo | and holds 1 of 7 Shield (health) licenses. The business delivered strong growth in Goldman Sachs International 2025 and is expected to deliver above group Life CSM growth and high single digit short-term Health growth going forward, with a high cash conversion. The Ankitha Giridhar | announcement doesn’t come as a major surprise given recent press articles (see Goldman Sachs India SPL here), and is in the bolt-on category for Allianz but provides entry into a global wealth hub with an attractive Life, Health and Wealth market (underpinned by favourable macro fundamentals), provides growth and productivity enhancement opportunities and diversifies Allianz’s Asia growth profile.

Financials In 2025 HSBC Life Singapore delivered c.€1.5bn in GWP, €79mn in IFRS 17 net income, €86mn stat net income, €116mn VNB and had €1.2bn of comprehensive equity (equity plus net CSM). The Solvency II impact is expected to be c.-5%.

The business has seen strong growth with Life annualised new business premium +29% in 2025 and short-term health GPW +27%. Double digit growth of new business in financial adviser, high-net-wort and Banca is expected to continue over the medium term and the Agency business should benefit from Allianz expertise. As a result, the CSM growth is expected to be well above the overall group target and the short-term Health business is expected to grow high single digit.

Productivity enhancements are also expected by leveraging Allianz Group wide infrastructure and solutions and bringing the expense ratio closer to peers.

Overall Allianz targets a double digit ROI in the mid-term with a high level of cash conversion expected (c.100% IFRS 17).

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Goldman Sachs Allianz SE (ALVG.DE)

Exhibit 1: HSBC Life Singapore has a balanced distribution Exhibit 2: HSBC Life Singapore has a favourable product mix w mix which is expected to continue 2025 Life new business by channel 2025 Life new business by product

Pure protection, HNW, 13% 4% Tied agents, 24%

€246mn IUL, 18% €246mn Fin. Advisors, 29% ILP, 70% Banks, 35%

Source: Company data Source: Company data

Exhibit 3: HSBC Life Singapore diversifies Allianz’s Asia Exhibit 4: HSBC Life Singapore diversifies Allianz’s Asia operating profit mix VNB profit mix Allianz Operating profit: regional split (pro-forma 2025) VNB: regional split (pro-forma 2025)

Singapore, 9% Singapore, 14% China, 10% China, 5%

Indonesia, 4% Indonesia, 15% Thailand, 21%

Thailand, 20% €853mn €832mn Malaysia, 10% Malaysia, 28%

Taiwan, 23% Philippines, 5% Taiwan, 32%

Source: Company data Source: Company data

We have a Buy rating on Allianz with a 12-month price target of €450. Our 12-month price target is based on a P/ATBV (adjusted tangible book value) vs. return on ATBV approach. Our 2027E P/ATBV multiple is c.1.8x and our 2028E RoATBV is c.18%. Key risks to our view and price target include: slower P&C top-line development / higher nat cat losses, lower Asset Management…