Singapore – Global financial services company Allianz has announced that it is set to acquire at least 51% of the shares in leading local insurer Income Insurance. The insurance, which is still subject for regulatory approval, will be done through its wholly owned subsidiary Allianz Europe B.V.
The planned acquisition is expected to elevate Allianz’s presence in the fast-growing and attractive Singapore insurance market and establishes the company as one of the largest composite insurers in Asia.
Moreover, the acquisition leverages Allianz’s capabilities in underwriting, product development, and data analytics with Income Insurance’s impressive market reach and strengths in distribution, partnerships, and people.
The integration of the businesses would result in top positions for Allianz in all segments – Property and Casualty (P&C), Health, and Life – in Singapore. It would also position Allianz to realize significant synergy and capital optimization potential. The transaction is expected to generate a double-digit Return on Investment for Allianz in the mid-term. Closing is expected in the fourth quarter of 2024 or in the first quarter of 2025.
Renate Wagner, member of the board of management at Allianz, said, “We look forward to partnering with Income Insurance, a leading insurer that shares Allianz’s values and commitment to customer excellence. This proposed transaction brings two strong businesses together for the benefit of Singapore’s customers and solidifies Allianz’s leadership position in the region.”
Meanwhile, Anusha Thavarajah, regional chief executive officer at Allianz Asia Pacific, commented, “We are excited at the prospect of the coming together of Allianz, the #1 global insurance brand, and Income Insurance, Singapore’s trusted and leading insurance brand. Asia holds great strategic importance for Allianz, and we are committed to investing in Singapore by partnering with a well-respected local institution.”
She added, “As Singapore and the region benefit from advancements in technology and healthcare and continue to grow in affluence, we firmly believe in the pivotal role of insurance in society to protect and grow their financial security and the well-being of our customers and partners.”
Allianz intends to offer SGD 40.58 per share for a total transaction value of approx. SGD 2.2 billion (approx. EUR 1.5 billion) for 51 percent of the shares in Income Insurance.
Meanwhile, NTUC Enterprise Co-operative Ltd–the parent company of Income–will continue to retain a substantial stake in Income Insurance, and together with Allianz, will establish a highly competitive powerhouse focused on Life & Health and Property & Casualty insurance in Singapore.
