SINGAPORE: Allianz has announced its intention to acquire a majority stake in Singapore-based Income Insurance, a move pending regulatory approval. The acquisition offer, spearheaded by Allianz Europe B.V., proposes a price of US$30.23 (S$40.58) per share, totaling approximately US$1.64 billion (S$2.2 billion) for a 51% stake in the company.
This strategic acquisition aims to bolster Allianz’s footprint in Singapore, a market of significant importance to the global insurance giant. Allianz, which operates in nearly 70 countries, reported an operating profit of €14.7 billion in 2023.
Income Insurance Limited, commonly known as Income, is a composite insurer based in Singapore, offering life, health and general insurance. Formerly known as NTUC Income Insurance Co-operative Limited, the company now operates as Income Insurance Limited, a public non-listed company limited by shares.
Anusha Thavarajah, Regional Chief Executive Officer of Allianz Asia Pacific, emphasized the strategic importance of this acquisition in a press release: “Asia holds great strategic importance for Allianz, and we are committed to investing in Singapore by partnering with a well-respected local institution.”
She added, “NTUC Enterprise Co-operative Ltd will continue to retain a substantial stake in Income Insurance, and together with Allianz, we will establish a highly competitive powerhouse focused on Life & Health and Property & Casualty insurance in Singapore.”
Thavarajah said, “By integrating Income Insurance’s capabilities in distribution, partnerships, products, people and Allianz Group’s global and regional resources and expertise, we look forward to taking the insurance landscape of Singapore and Southeast Asia to the next level.”
Income Insurance has also reassured stakeholders that discussions regarding the potential transaction with Allianz are ongoing. In a media statement released just a few days prior, the company stated: “Income Insurance would like to update that the discussions are ongoing. Income Insurance reiterates that there is no assurance that any transaction will materialize or that any definitive or binding agreement will be reached.”
The company further advised shareholders to exercise caution: “Income Insurance will make further announcements if and when there are any material developments which warrant disclosure, in compliance with applicable laws and regulations.” Shareholders are advised to be cautious when dealing with shares and to avoid actions that may not be in their best interests.
The acquisition, if completed, will mark a significant step for Allianz in expanding its presence in the Asian market, aligning with its broader strategic goals in the region.
TISG/