Allianz Group has withdrawn its pre-conditional cash offer to acquire a majority stake in Income Insurance Limited. The move follows changes to Singapore’s Insurance Act announced during a parliamentary session on October 14.
Initially announced on July 17, 2024, the offer was made through Allianz Europe B.V., a wholly owned subsidiary of Allianz, to purchase at least 51% of Income Insurance’s shares.
The offer price was S$40.58 per share, valuing the transaction at approximately $2.2 bn.
The decision reflects Allianz’s commitment to financial discipline. Despite the withdrawal, the firm maintains that Allianz remains a suitable partner to support Income Insurance’s growth and strategic goals for the benefit of Singapore’s population.
If completed, the deal would have elevated Allianz from the ninth to the fourth-largest composite insurer in Asia. Renate Wagner, Board Member of Allianz SE responsible for the Asia-Pacific region, emphasized the firm’s respect for the Singapore Government’s decision.
We still believe a combination of Allianz and Income Insurance would have brought together two strong businesses, benefiting Income Insurance’s policyholders and a larger share of Singapore’s customers,
Renate Wagner, Board Member of Allianz SE
While regretting the withdrawal, Wagner affirmed Allianz’s ongoing support for the Singaporean insurance sector. She highlighted the company’s confidence in its regional operations and its commitment to delivering value to customers and partners across Asia-Pacific.
The Asia-Pacific market remains a key growth area for Allianz, with Singapore serving as a vital financial hub. In 2023, Allianz reported €7.7 bn in business volume across property-casualty and life/health insurance in the region.
