Following the Singapore Government’s announcement during the parliament sitting on October 14th and subsequent changes to the Insurance Act, Allianz Group has withdrawn its pre-conditional voluntary cash general offer to acquire a majority stake in Income Insurance Limited.
The original offer was announced on July 17th, 2024 and was made through Allianz’s wholly owned subsidiary, Allianz Europe B.V. to acquire at least 51% of the shares in Income Insurance.
The firm confirmed it still believes that Allianz 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.
This strategic move would have propelled Allianz from the ninth to the fourth largest composite insurer in Asia. Allianz offered S$40.58 per share for a total transaction value of $~2.2 billion.
With €7.7 billion 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, and Singapore as the regional financial services hub of Southeast Asia will continue to remain an important market for Allianz.
Renate Wagner, Member of the Board of Management of Allianz SE and responsible for the Asia-Pacific region, commented, “We respect the Singapore 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.
“We regret having to make this decision but we will, without question, carry on supporting the Singapore insurance market’s continued growth and success. 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,” added Wagner.
The post Allianz withdraws offer to acquire majority stake in Income Insurance appeared first on ReinsuranceNe.ws.