Allianz withdraws $2.2b offer for Income Insurance
Flags with the logo of Allianz SE, Europe's biggest insurer, are pictured before the company's annual shareholders' meeting in Munich, Germany, May 3, 2017.
PHOTO: Reuters file
PUBLISHED ONDecember 16, 2024 8:17 AM
SINGAPORE — Allianz has withdrawn its offer to acquire at least 51 per cent of Singapore's Income Insurance for about US$1.63 billion (S$2.2 billion), the German company said in a statement on Monday (Dec 16).
Reuters reported on Dec 13 that the German insurer has scrapped the proposed acquisition.
Allianz said in Monday's statement that the decision came in light of the Singapore government's announcement during a parliament sitting on Oct 14 and subsequent changes to the country's Insurance Act.
The acquisition would have lifted Allianz to fourth largest composite insurer in Asia, from ninth, but sparked criticism in Singapore because of concerns that it would detract from a mission to provide affordable insurance for lower-income workers.
Singapore Prime Minister Lawrence Wong said in October that the city-state would block Allianz's bid, but remained open to a new deal if its concerns could be addressed, which Allianz said at the time it would attempt to do.
The government subsequently amended the insurance law giving it more power to scrutinise buyouts of cooperative-linked insurers.
[[nid:712504]]