Singapore – German insurance company Allianz has scrapped its bid to acquire insurance company Income Insurance Limited after the government intervened to hinder the transaction.
While Allianz continues to see the merger as beneficial to Singaporeans, the insurance company cites its ‘financial discipline’ as the reason behind withdrawing the acquisition in a press release.
Since the Singapore government expressed its concerns over the merger deal on October 14, Allianz says it has held comprehensive discussions with Income Insurance that have strengthened the two companies’ shared values.
Allianz originally offered to acquire at least 51% of shares from Income Insurance on July 17 this year but was hindered by public concerns on how it might affect a brand trusted by Singaporeans. The government intervened on behalf of public interest.
Meanwhile, the Monetary Authority of Singapore released a statement regarding the merger, expressing satisfaction with Income Insurance’s processes to address conflicts of interest.
Nonetheless, Allianz maintains its commitment to Singapore and the Asia-Pacific (APAC) region as important markets for growth.
“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,” Renate Wagner, member of the board of management of Allianz SE and responsible for APAC, said.
“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.
