Allianz is being viewed as the leading contender to buy HSBC Holdings' insurance business in Singapore, according to a Bloomberg report.

The German group is regarded as the most likely purchaser of HSBC Life Singapore after surpassing rival bids.

Unnamed sources cited by the news agency said Allianz and HSBC are working through the final terms of a deal, which could be unveiled soon.

HSBC had been eyeing a valuation of up to $2bn for the business.

The negotiations are continuing and other parties continue to express interest in the business, according to the sources.

An Allianz representative declined to comment.

An HSBC spokesperson said the Singapore insurance business is undergoing a strategic review and that no outcome has been decided.

The spokesperson added that the bank remains committed to Singapore as an international wealth and wholesale banking centre, and said the market is central to its strategy as well as a focus for investment and expansion.

Allianz has been looking to increase its presence in Singapore. In 2024, however, it withdrew a proposal to acquire a majority stake in Income Insurance valued at around S$2.2bn ($1.71bn).

Separately, Allianz Global Investors is in exclusive discussions to acquire the asset management arm of UOB in Singapore, as per a Bloomberg report released earlier this month.

HSBC had previously narrowed the bidding field for the Singapore insurance unit to Allianz, Sumitomo Life Insurance and Daiichi Life Group.

Other insurers including Sun Life Financial and Nippon Life Insurance had also been linked to the process.

The bank began a review of the business in January and said at the time that Singapore was a priority market.

Four years ago, HSBC completed the $529m purchase of AXA Singapore. In 2025, the bank announced the sale of HSBC Life (UK) to Chesnara for £260m.

"Allianz leads race for HSBC's Singapore insurance arm – report " was originally created and published by Life Insurance International, a GlobalData owned brand.