Allianz (-0.23% to 301.40 euros) announced that it had withdrawn its offer to take a majority stake in the Singaporean insurer Income Insurance. The German insurer submitted a proposal on July 17. This withdrawal decision comes this Monday following the announcement made by the Singaporean government on October 14. Singapore has expressed concerns about the proposed transaction. The Minister for Culture, Community and Youth, Edwin Tong, said that “this operation would not be in the public interest”.
Income Insurance’s parent company, NTUC Enterprise said in a press release on Monday “that it acknowledges Allianz’s decision to withdraw its offer due to legislative changes which have affected the deal”.
In detail, the Singapore government has amended the Insurance Act, giving it more power to control takeovers of insurers linked to cooperatives.
Allianz Europe BV, a subsidiary of Allianz, had submitted a preconditional cash offer to acquire at least 51% of the shares of Income Insurance for an amount of approximately 2.2 billion Singapore dollars (or almost 1.6 billion US dollars).
This transaction, subject to approval by regulatory authorities, was expected to propel the Allianz group from ninth to fourth among composite insurers in Asia.
However, Allianz says it is “very confident” of the potential of the insurance market in Singapore and will continue to expand its business in the Asia-Pacific region. The insurer believes “she is the ideal partner to support the continued growth of Income Insurance”.
“We respect the decision of the Singapore government,” says Renate Wagner, member of the board of directors of Allianz SE and head of the Asia-Pacific region.
With a total business volume of 7.7 billion euros for its general insurance and life/health insurance activities in 2023, the Asia-Pacific region is a strategically important growth area for Allianz and Singapore, in as Southeast Asia’s regional financial services hub.
“We have full confidence in the future strength and potential of our existing operations in this region, and we look forward to continuing to deliver value to our customers and partners across Asia Pacific,” adds Renate Wagner.
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