Tag: Allianz

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. 

Singapore – The Singaporean government has blocked the supposed deal between Allianz and Income–yet has left its door open should concerns on public interest have been raised and addressed by both parties.

In a recent ministerial statement by Minister of Culture, Community and Youth (MCCY) Edwin Tong, he stated that should this deal push through, Income will not be able to fulfill its social mission as a cooperative after the acquisition.

The MCCY raised significant concerns over a planned capital reduction that would distribute around S$1.85b to shareholders shortly after the deal’s conclusion. This move contradicted Income’s prior commitments made during its corporatisation process, where it pledged to strengthen its capital reserves for enhanced financial stability. 

Furthermore, the deal lacked enforceable safeguards to preserve Income’s cooperative identity and its mission to serve the community. MCCY worried that this could negatively impact both policyholders and the cooperative sector.

Although the Monetary Authority of Singapore (MAS) had no issues from a regulatory perspective, MCCY viewed the deal as inconsistent with Income’s long-term social obligations. The government remains open to reconsidering the transaction if these critical concerns are resolved.

In a Facebook post by Prime Minister Lawrence Wong, he stated that they have tabled an amendment to the Insurance Act in Parliament today to allow MAS to withhold approval of the sale on the grounds of public interest when it involves a current or former cooperative insurer.

He also clarified that the Singaporean government supports having a strong partner for Income, so as to strengthen its capital base and market position, and has no concerns over Allianz’s standing or suitability to acquire a majority stake in Income.

“Our concerns are over the structure and terms of this specific transaction, particularly in the context of assurances which Income had given to MCCY when the former was corporatised in 2022. Though this transaction will not proceed, we remain open to a new deal that Income may pursue with Allianz or other partners, so long as our concerns are fully addressed,” Wong stated.

Allianz announced back in July that it is set to acquire at least 51% of the shares in leading local insurer Income Insurance, which will be done through its wholly-owned subsidiary Allianz Europe B.V. 

Kuala Lumpur, Malaysia – Life insurance provider Allianz Malaysia has partnered with FCB Shout, a part of the global FCB advertising network, to release its newest “Be A-Z Ready For Tomorrow” campaign that centers on how total retirement is more than just saving money. 

The quirky campaign dove head-on into the issue of retirement schemes and the harsh future that awaits people should they continue to plan their retirement the traditional way of solely bolstering their finances. 

FCB Shout’s campaign idea peeled off the layers of outdated cliches about retirement plans and instead focused on the issue at the center of the retirement reality: preparing for retirement requires more than just saving money.

The ‘Be A-Z Ready For Tomorrow’ campaign was composed of two parts: a film and a social experiment video that featured the power of AI technology.  

The lighthearted film featured the protagonist’s older future self travelling back in time to warn his younger self about the perils that plagued their retirement as a result of the retirement savings scheme he had just contentedly signed up for.

https://www.youtube.com/watch?v=BjkhU2kD6ZM

Together with the film, the campaign included a social experiment video that used AI and face mapping technology to execute the time travelling concept. Through AI, Malaysians who participated in the social experiment received messages from their future selves about the ineffectiveness of their retirement plans. 

The social experiment video was designed as a more realistic companion piece to the main film, showing viewers the reality of their retirement plans and helping them understand the real danger that awaits them in the future if they do not shift their current mindset regarding retirement. 

Amy Loke, chief market management officer at Allianz Malaysia, explained, “While it’s undeniable that savings is a critical component of retirement preparation, most Malaysians are under the impression that saving is the only thing that they need to do.The reality is, to plan for a total retirement, it is also essential to put other factors like healthcare cost and life’s unpredictability into consideration. 

She continued, “It’s a challenging conversation because of how deeply ingrained the old method is in the minds of Malaysians. But FCB SHOUT’s creative concept truly hit the nail on the head; not only raising the awareness on the importance of the oft-neglected healthcare and life aspects of retirement and showcasing how our Total Retirement Solutions are designed to get Malaysians A-Z ready for tomorrow, but also successfully doing so in a refreshingly light manner that made this difficult conversation easy to digest for our audience.”

Speaking on the campaign, Suah Boon Chuan, creative director at FCB SHOUT, said, “Challenging the traditional view will always come with resistance and skepticism, so we chose to bring the issue and Allianz Malaysia’s total retirement solutions to the audience’s attention using humour and entertainment to make our message more palatable.” 

“More essentially, we needed to show a true understanding of our audience’s desired future lifestyle, hence even our portrayal of retirement was reimagined based on the natural progression of their current way of life. There might be sci-fi elements in our spot, but we wanted it to be clear that the issue was anything but fictional,” he added.