Allianz clarifies bid for Income Insurance
Allianz clarifies bid for Income Insurance | Insurance Business Asia
Insurance News
Allianz clarifies bid for Income Insurance
Clarification released amid major stakeholder backing
Insurance News
By
Roxanne Libatique
Allianz, through its subsidiary Allianz Europe BV, has announced a pre-conditional voluntary cash general offer to acquire a majority stake in Income Insurance Limited, prompting the latter to address queries from its shareholders and policyholders.
“As mentioned in the media statement from NTUC Enterprise on July 17, 2024, it intends for Income Insurance to continue to be an important, financially profitable, and socially responsible business, in line with Income Insurance’s enduring purpose of empowering financial well-being for all, which it recognises to be strongly aligned with Allianz’s value of securing people’s future,” it said.
Income Insurance’s continued social commitments
Income Insurance said it will continue its participation in national insurance programs and maintain its community investments in Singapore. This includes a S$100 million pledge over 10 years starting in 2021, aimed at promoting social mobility among low-income groups, supporting senior citizens, and championing environmental initiatives.
The company will also continue providing insurance solutions for seniors, individuals with mental health issues, and those with special needs.
Income Insurance shareholder opportunities
Income Insurance said its shareholders will be offered S$40.58 per share if they accept the offer and tender their shares, giving them priority over NTUC Enterprise.
Shareholders can decide to tender all, some, or none of their shares during the offer period.
The offer’s launch is subject to regulatory approval, with the closing expected in late 2024 or early 2025. Shareholders are not required to take any action at this stage. Upon approval, shareholders will receive a Composite Document with detailed instructions on how to proceed.
Allianz pursues majority stake in Income Insurance
This month, Allianz Europe BV initiated a pre-conditional voluntary cash general offer to acquire at least 51% of Income Insurance shares. The offer price is S$40.58 per share, valuing the deal at approximately S$2.2 billion.
This acquisition is part of Allianz’s strategy to enhance its footprint in Singapore. The insurance giant operates in nearly 70 countries and reported an operating profit of €14.7 billion in 2023. Having been active in Asia since 1910, it currently serves 9 million customers across various markets.
Anusha Thavarajah, regional CEO of Allianz Asia Pacific, highlighted Asia’s importance for the insurance giant’s growth strategy.
“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 said.
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