Munich-headquartered global insurer Allianz, through its wholly-owned subsidiary, Allianz Europe (the Offeror), has announced a pre-conditional voluntary cash general offer to acquire at least 51% of the shares of one of Singapore's biggest composite insurers.
Allianz said in a statement that it intends to offer S$40.58 ($30.26) per share for a total transaction value of approximately S$2.2bn ($1.6bn) for 51% of the shares in Income Insurance. NTUC Enterprise Co-operative will continue to retain a substantial stake in Income Insurance following the completion of the deal.
The proposed transaction, which is subject to regulatory approval, marks a key milestone for Allianz in its strategic ambition to expand and strengthen its presence in Singapore — an important market for Allianz, given its status as the financial services hub of Southeast Asia.
Allianz
Ms Anusha Thavarajah, regional CEO, Allianz Asia Pacific, said, “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.
Allianz is one of the world’s largest global financial services groups. It was founded more than 130 years ago and is present in nearly 70 countries today. Over the years, the Allianz Group has grown from strength to strength, reaching an operating profit of EUR14.7bn ($16.1bn) in 2023. Present in Asia since 1910, Allianz has a balanced and well-diversified footprint across nine markets in both Life & Health and Property & Casualty, serving 9m customers through a network of 80,000 distributors and 35 distribution partners.
NTUC Enterprise
In a separate statement, NTUC Enterprise said that it currently holds approximately 72.8% of the shares in Income Insurance, with the remaining held by minority shareholders.
At the close of the Offer, the remaining shares representing approximately 49% will be held by minority shareholders and NTUC Enterprise, which will remain a substantial shareholder. The Offer is also subject to the approval of the shareholders of Income Insurance for the amendments to the constitution and the proposed name change of Income Insurance.
Ms Adeline Sum, CEO of NTUC Enterprise, said, “Allianz’s expertise as a global leader in insurance can strengthen Income Insurance’s competitive position in Singapore and enable Income Insurance to access its regional scale and networks. Secondly, Allianz’s solid track record as a global leader in asset management can enhance Income Insurance’s investment capabilities for the benefit of policyholders. Thirdly, the strength of Allianz’s financial position will provide additional support to Income Insurance where required.”
“As stated in the Pre-Conditional Offer Announcement, Allianz plans to keep supporting Income Insurance’s continued participation in national insurance programmes and for Income Insurance to continue to recognise the union (National Trade Union Congress) and uphold the principles of good labour management relations as advocated by the tripartite partners in Singapore. We intend for Income Insurance to continue to be an important financially profitable and socially responsible business, in line with its enduring purpose of empowering financial well-being for all, which strongly aligns with Allianz’s values.”
NTUC Enterprise is a holding entity set up by NTUC, the Singapore Labour Foundation (SLF), and unions affiliated with both NTUC and SLF.