Allianz Halts Income Insurance Acquisition Plan Amid Singapore’s Regulatory Concerns, Reaffirms Commitment to Asia-Pacific Growth

(IN BRIEF) Allianz has withdrawn its offer to acquire a majority stake in Income Insurance Limited following regulatory concerns raised by the Singapore Government and amendments to the Insurance Act. The offer, announced in July 2024, was intended to secure a 51% stake in Income Insurance, but Allianz respected the government’s decision and emphasized its commitment to financial discipline. Despite this setback, Allianz reiterated its strong belief in the growth potential of the Singapore insurance market and affirmed its commitment to expanding its existing operations across the Asia-Pacific region, where it achieved €7.7 billion in business volume in 2023.

(PRESS RELEASE) MUNICH, 16-Dec-2024 — /EuropaWire/ — In response to regulatory concerns and amendments to Singapore’s Insurance Act, Allianz, through its subsidiary Allianz Europe B.V., has officially withdrawn its voluntary cash offer to acquire a 51% majority stake in Income Insurance Limited. The decision follows the Singapore Government’s October 14 parliamentary announcement opposing the transaction in its current form, as well as subsequent legislative updates.

Despite the withdrawal, Allianz reiterated its confidence in the Singapore insurance market’s potential and affirmed its commitment to supporting the industry’s growth across the Asia-Pacific region. The offer, initially announced on July 17, 2024, highlighted Allianz’s interest in fostering Income Insurance’s expansion and enhancing its service to Singapore’s customers.

Renate Wagner, Member of Allianz SE’s Board of Management and responsible for the Asia-Pacific region, expressed respect for the government’s decision while emphasizing the benefits the partnership could have brought. “We believed that combining Allianz’s global expertise with Income Insurance’s strong local presence would create substantial value for policyholders and customers in Singapore. Although we regret having to withdraw, we remain steadfast in our commitment to contributing to the success of Singapore’s insurance market,” Wagner said.

Allianz remains a key player in the Asia-Pacific region, a strategic growth area where it achieved €7.7 billion in Total Business Volume across its Property-Casualty and Life/Health sectors in 2023. Singapore’s position as a financial hub ensures its continued importance to Allianz’s regional strategy. Wagner added, “We are confident in the long-term strength of our existing operations in Asia-Pacific and will continue delivering value to our customers and partners throughout the region.”

This decision underscores Allianz’s adherence to financial discipline and its respect for regulatory frameworks while maintaining its vision for fostering growth and innovation in the insurance sector across Southeast Asia.

About Allianz

The Allianz Group is one of the world’s leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 764 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.

Cautionary note regarding forward-looking statements

This document includes forward-looking statements, such as prospects or expectations, that are based on management’s current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements.

Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz’s core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including and related integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

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Media Contacts:

Frank Stoffel
Allianz SE
+49 89 3800 18124
frank.stoffel@allianz.com

Fabrizio Tolotti
Allianz SE
+49 89 3800 14819
fabrizio.tolotti@allianz.com

Johanna Oltmann
Allianz SE
+49 89 3800 13346
johanna.oltmann@allianz.com

SOURCE: Allianz

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