Allianz Scraps $1.58 Billion Acquisition of Income Insurance

Allianz SE has decided to abandon its proposed acquisition of a 51% stake in Singaporean firm Income Insurance Ltd, valued at $1.58 billion, due to significant public opposition, according to a source familiar with the matter.

The deal, if completed, would have propelled Allianz to the fourth largest composite insurer in Asia, up from its current ninth position. However, the acquisition faced criticism in Singapore, where concerns were raised that it might undermine Income Insurance's mission to provide affordable insurance to lower-income workers.

The decision is expected to be publicly announced within the coming week, the source revealed, on condition of anonymity. Allianz has declined to comment on the matter.

Income Insurance Ltd, established in the 1970s, serves around 1.7 million customers and offers a range of insurance products including life, health, and property insurance. It was founded with the specific aim of providing insurance to the less affluent sections of the population.

Singapore's Prime Minister Lawrence Wong stated in October that the city-state would block Allianz's bid. However, he also expressed openness to a revised deal if Allianz could address the government's concerns, a commitment Allianz had initially agreed to pursue.