Singapore: Allianz in Talks to Cancel Majority Stake Acquisition Deal with Local Insurer

Reports from Bloomberg over the weekend indicate that Allianz SE is reevaluating its plan to buy a 51% stake in Singapore’s Income Insurance for $16.3 billion. This potential move comes after facing public backlash and challenges in addressing government concerns about the deal.

If the decision to drop the acquisition goes through, an official announcement could happen in the near future. The initial announcement of the acquisition back in July 2024 sparked criticism, with many expressing worries about potential implications such as increased insurance premiums and a departure from Income’s mission to support lower to middle-income workers in Singapore.

The Singapore government voiced its opposition to the deal in October, citing concerns about the public interest. Allianz had previously stated its willingness to collaborate with various stakeholders to explore possible modifications to the transaction structure.

While Allianz has refrained from providing comments on the matter, attempts to reach out to Income Insurance for a statement outside of regular business hours were unsuccessful.

Stay tuned for further updates as the situation continues to unfold.