Allianz withdraws offer for Insurance Income stake in Singapore

Written by Michael Griffiths

19/12/2024

Allianz has withdrawn its pre-conditional voluntary cash offer to acquire at least 51% of the shares in Singapore-based Income Insurance.

The move follows the Singapore Government’s announcement during the parliament sitting on 14 October and subsequent changes to the Insurance Act.

Allianz’s offer, made through its wholly owned subsidiary Allianz Europe B.V., was announced on 17 July.

The group said it remains “convinced” it is the right partner to support Income Insurance’s continued growth, but the decision to withdraw its offer “underscores financial discipline”.

“We respect the Singapore Government’s decision,” member of the board of management of Allianz SE, Renate Wagner, commented.

“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. We regret having to make this decision but we will, without question, carry on supporting the Singapore insurance market’s continued growth and success.”

With €7.7bn in total business volume across its property/casualty and life/health retail insurance businesses in 2023, the Asia-Pacific region is a strategically important growth area for Allianz. The insurer views Singapore as the regional financial services hub of Southeast Asia and said it would continue to remain an important market.

“We have full confidence in the future strength and potential of our existing operations across the region, and we look forward to continuing to deliver exceptional value to our customers and partners across Asia-Pacific,” Wagner added.

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