Allianz Makes $1.6 Billion Offer for 51% of Income Insurance

Allianz has made an offer to acquire at least 51% of Singapore’s Income Insurance Ltd. in a transaction valued at about S$2.2 billion ($1.6 billion).

The planned acquisition will significantly strengthen Allianz’s presence in Singapore, Europe’s biggest insurer said in a statement Wednesday. The offer, made through subsidiary Allianz Europe BV, is a pre-conditional voluntary cash general offer of S$40.58 per share, according to the statement.

The transaction is subject to regulatory approval.

“The proposed transaction 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 said.

NTUC Enterprise Co-operative Ltd. will retain a substantial stake in Income Insurance, Allianz said.

Morgan Stanley is advising Income Insurance and NTUC on the transaction, people familiar with the matter said, asking not to be identified discussing private information. A representative for Morgan Stanley didn’t immediately respond to a request for comment.

The announcement confirmed an earlier Bloomberg News report.

Income Insurance was founded in 1970 and has about 1.7 million customers in Singapore. It is designated as one of the country’s four systemically important insurers.

Photograph: Crowds by the Merlion and Marina Bay Sands in Singapore, on Saturday, July 9, 2022. Photo credit: Lauryn Ishak/Bloomberg