European Insurance News & Views: Prudential Singapore versus HSBC Singapore

Research evidence excerpt

European Insurance News & Views: Prudential Singapore versus HSBC Singapore

Global Research

24 July 2026ab

European Insurance News & Views Equities

Europe including UKPrudential Singapore versus HSBC Singapore

Financial

Nasib Ahmed, FIA

Headline: Prudential Singapore versus HSBC Singapore Analyst

nasib-za.ahmed@ubs.com

Allianz announced the acquisition of HSBC Singapore this morning (see First Read here). +44-20-7568 8231

We compare this business to Pru's Singapore business below. Will Hardcastle, CFA

Analyst

will.hardcastle@ubs.com

UBS Summary:

+44-20-7567 9763

Qian Lu

HSBC Singapore generated IFRS income of €78m IFRS income and €86m of stat. Analyst

income over 2025, with Allianz expecting a return on investment of >10% in the qian-za.lu@ubs.com

medium-term through efficiency gains. For example, one of the efficiency gains is the +44-20-7567 4657

current expense ratio of 13% within the stat. filings, versus the nearest peer at c.10%

Chloe Ryan

and the most efficient at <5%. Assuming the business achieves the ROI target within 5 Associate Analyst

years, the implied growth rate is c.20%. The company also expects the remittance ratio chloe.ryan@ubs.com

to be c.100% of IFRS earnings. The book value multiple (excluding the distribution +44-20-7567 3505

agreement is at >1.5x adjusted comprehensive equity.

Pru Singapore: Pru's Singapore business reported IFRS profits of c.$600m on an IFRS

basis in 2024, with remittances of c.$200m (a c.30% payout). We also expect Pru

Singapore to grow in line with Pru's double-digit growth targets (i.e. c.10% NBP

growth), which is roughly half of the implied medium-term growth rate expected from

HSBC Singapore. Pru Singapore's Adjusted Equity at FY24 was c.$7.3bn, with a >1.5x

multiple implying a c.$11bn valuation.