Allianz officially withdraws majority stake offer for Income Insurance

SINGAPORE: Global insurance giant Allianz, through its subsidiary Allianz Europe B.V., has officially withdrawn its pre-conditional voluntary cash general offer to acquire at least 51% of Income Insurance.

The decision comes in response to recent changes to the Insurance Act announced by the Singapore Government on 14 Oct.

Allianz first announced its offer on 17 July, expressing a strategic intention to partner with Income Insurance to bolster growth and expand its footprint in Singapore’s insurance market. However, the regulatory amendments prompted a reassessment of the transaction.

“Allianz remains convinced it is the right partner to support Income Insurance’s continued growth and its strategic mission for the benefit of Singapore’s people, but the decision to withdraw its offer at this time underscores Allianz’s financial discipline,” the company stated.

Renate Wagner, Member of the Board of Management of Allianz SE and head of the Asia-Pacific region, affirmed Allianz’s respect for the government’s decision.

“We still believe the combination of Allianz and Income Insurance would result in two strong businesses being brought together for the benefit of Income Insurance’s policyholders and a growing portion of Singapore’s customers,” Ms Wagner said.

Despite the withdrawal, Ms Wagner emphasized Allianz’s long-term commitment to Singapore’s insurance market. “We regret having to make this decision, but we will, without question, carry on supporting the Singapore insurance market’s continued growth and success,” she added.

The insurer reiterated its belief that the proposed acquisition would have delivered benefits to policyholders and customers alike.