HSBC plans to review insurance business in Singapore
HSBC has revealed plans to review its insurance business in Singapore in the latest move by boss Georges Elhedery to overhaul the British banking giant.
The group said the review would only cover HSBC Life Singapore, adding it will consider all options for the division including a sale, which could be worth over one billion dollars (£740 million), according to reports.
HSBC said despite the unit sale, Singapore remained a “priority market” for the bank.
“HSBC will continue to offer market-leading insurance products to its customers in Singapore,” it said.
“The review is part of the group’s ongoing simplification globally.
“HSBC is focused on increasing leadership and market share in the areas where it has a clear competitive advantage and where it has the greatest opportunities to grow and support its clients.”
Singapore was the firm’s fifth largest earnings contributor in 2024, with $1.4bn (£1.04 billion) in pre-tax profits.
It marks the latest step in a plan being led by Mr Elhedery to streamline the firm and cut costs since he took on the top job in 2024.
He has already reorganised HSBC into four new divisions and pulled out of some businesses, while moving to take its troubled Hang Seng bank in Hong Kong private.
After gaining shareholder approval earlier this month, the group expects Hang Seng shares to be delisted from the Hong Kong Stock Exchange on January 27 should it get the green light from Hong Kong’s high court.
HSBC already owns around 63 per cent of Hang Seng and plans to buy out the remaining stake.
Hang Seng, which was founded in 1933, is one of the largest domestic banks in Hong Kong.
It was bought by HSBC in 1965, marking a milestone deal for the group at the time, but the subsidiary has struggled in recent years after being hit hard by Hong Kong’s property slump and seeing rising bad debts.