Allianz's Withdrawal

German insurer Allianz has announced its decision to withdraw its offer to acquire a majority stake in Income Insurance, following intervention by the Singapore government. The proposed transaction, which aimed to secure a 51% stake in Income for approximately S$2.2 billion, was met with concerns over its impact on Income's social mission.

Government Intervention

The Singapore government's intervention on October 14 led to the blocking of the deal, with Culture, Community and Youth Minister Edwin Tong stating that the current form of the deal would not be in the public interest. However, the government expressed openness to new arrangements if the highlighted concerns were fully addressed.

Implications for Income Insurance

NTUC Enterprise, acknowledging Allianz's decision, emphasized the need for Income Insurance to bolster its financial resilience, especially in times of crisis. The search for a strategic partner was conducted to ensure Income's competitiveness and regulatory capital adequacy, critical for protecting its policyholders' interests.

Future Strategic Options

NTUC Enterprise will take time to study how to address the government's concerns and consider all strategic options that can further strengthen Income Insurance's financial resilience.