Allianz SE has agreed to acquire United Overseas Bank’s asset management business for S$555 million (US$433 million), strengthening its asset management presence in Asia as the German insurer continues its regional expansion strategy.

The acquisition, announced Wednesday, will see Allianz Global Investors (AllianzGI) purchase UOB Asset Management Ltd. (UOBAM), adding approximately S$42 billion in assets under management and expanding AllianzGI’s distribution network across eight Asian markets, including Singapore, Indonesia, Thailand and Vietnam.

The transaction comes less than two weeks after Allianz agreed to acquire HSBC’s Singapore insurance business for S$2.7 billion, underscoring chief executive Oliver Bäte’s focus on growing the group’s Asian operations while expanding its asset management franchise.

AllianzGI said the deal will provide access to UOB’s established regional distribution network, while all 500 UOBAM employees are expected to transfer to Allianz upon completion.

UOB said the disposal is expected to generate a pre-tax gain of approximately S$330 million and increase the bank’s Common Equity Tier 1 capital ratio by around 14 basis points.

The acquisition also aligns with Allianz’s broader strategy of increasing its exposure to asset management. The group recently agreed to acquire the remaining minority stake in Pacific Investment Management Company (PIMCO), further consolidating its position in the global investment management sector.

The transaction is expected to close in 2027, subject to regulatory approvals.