Another ex-NTUC Income CEO raises concerns about Allianz deal, while Singaporeans seek “full transparency”

SINGAPORE: Yet another former NTUC Income CEO has expressed concerns over the plan for Allianz to acquire a majority stake in Income Insurance.

On July 24, CNA quoted Tan Suee Chieh, who had been the Chief Executive Officer of NTUC Income Insurance Co-operative Limited from 2007 to 2013, as calling the transaction a “breach of good faith.”

He also told CNA that he had been assured that NTUC Enterprise was committed to Income Insurance. “This was what I had hoped would not happen. I did not expect the sale of majority shareholding to a very commercial European insurer to happen. My concern about the fair treatment of minority shareholders when the corporatisation happened remains,” he said.

On his Facebook page, Mr Tan wrote that when he and Tan Kin Lian, who served as CEO of NTUC Income from 1977 to 2007, had run it as a cooperative, they wanted to “maximise social impact.” This is opposed to what Oliver Baete, the Group CEO of Allianz, said in a Business Times piece earlier this week “we want to build a resoundingly profitable business.”

“I hope our leaders are making sound decisions to benefit Singaporeans in the long term. I believe if there is a public outcry, things may still change. It is time to speak up or forever hold your peace,” he added.

Earlier this week, Mr Tan Kin Lian had weighed in on the matter, saying, “This is sad. But it reflects what has been happening in Singapore for the past three decades. We are following the bad practices of America. America is now in decay. Singapore may follow.”

Other prominent figures, including veteran diplomat Tommy Koh, have also voiced concerns over the Allianz’ acquisition, saying, “I don’t think it’s a good idea to sell INCOME. It was founded to serve a social purpose and a social need. They remain valid today. I wish to argue that INCOME and Fairprice should never be sold.”

Allianz announced the acquisition offer, which is still pending regulatory approval, on July 18. Its proposed price is US$30.23 (S$40.58) per share, for a total of approximately US$1.64 billion (S$2.2 billion) for a 51 per cent stake in the company.

Over on Reddit, some Singaporeans have expressed the need for complete transparency on the Allianz deal.

“We need full transparency on this. It’s a national issue that can’t be ignored; The whole purpose of Income will be made redundant if this deal goes through, with no safety nets for the lower income,” wrote one. /TISG

Read also: Allianz plans to buy $1.64 billion majority stake in Income Insurance