Singapore's UOB to sell asset management business to Allianz unit for $556m

Singapore's United Overseas Bank (UOB) is selling its asset management business to a unit of Germany's Allianz for $555 million, as the lender focuses on wealth advice and distribution.

The deal marks insurer Allianz's second Singapore-related acquisition announced in about two weeks, following its July 24 deal to buy HSBC's life and health insurance business in the city-state for $2.7 billion.

Allianz Global Investors (AllianzGI), the asset management arm of Allianz, will buy all of UOB's shares in UOB Asset Management, which operates in Singapore, Brunei, Indonesia, Japan, Malaysia, Taiwan, Thailand and Vietnam, according to statements from the two companies on Wednesday.

The deal includes excess cash held by UOB Asset Management and a 10-year distribution agreement, AllianzGI said.

UOB Asset Management managed about $42 billion of client assets as of Dec 31, 2025, UOB said. The purchase will raise AllianzGI's assets managed for clients in Asia-Pacific to more than €170 billion (S$217.9 billion), it said.

The sale is part of UOB's plan to strengthen its wealth management business, the bank said. It will allow UOB to keep advising customers and selling investment products without owning the fund manager.

Under the distribution deal, UOB will offer UOB Asset Management and AllianzGI unit trusts, mutual funds and other investment products in Singapore, Indonesia, Malaysia, Thailand and Vietnam, UOB said.

The agreement will begin after the sale is completed. AllianzGI said it would give the firm long-term access to UOB's retail customer network across Southeast Asia.

The transaction is subject to regulatory approvals and is expected to close in 2027, the companies said.

All of UOB Asset Management's 500 employees in the region will move to AllianzGI, which has pledged to maintain their employment, UOB said. UOB Asset Management will continue operating as usual until the deal closes.

UOB expects a pre-tax gain of about $330 million, excluding one-off transaction costs, and a 14-basis-point increase in its common equity tier one ratio, it said. 

The ratio measures a bank's core capital strength.

Shares of UOB were down 0.5 per cent by midday on Wednesday, in line with the benchmark Singapore index.

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