Allianz, through its wholly owned subsidiary Allianz Europe B.V., announced on Wednesday (17 July) a pre-conditional voluntary cash general offer to acquire at least 51% of the shares in Singapore insurer Income Insurance. The transaction is subject to regulatory approval.
Allianz intends to offer SGD 40.58 per share, valuing the transaction at approximately SGD 2.2bn (approx US$1.64bn) for the 51% stake.
Income Insurance, a well-established name in Singapore, serves approximately 2 million policyholders. The company offers a full range of Property-Casualty, Health, and Life products through various distribution channels, including agents, financial advisors, bancassurance, and direct channels.
Both businesses had confirmed they were discussing a potential deal in June.
Renate Wagner
Member of the Board of Management at AllianzThe acquisition would enhance Allianz’s presence in the Singapore insurance market, positioning it as one of the largest composite insurers in Asia.
Renate Wagner, Member of the Board of Management of Allianz and responsible for the Asia-Pacific region, commented, “We look forward to partnering with Income Insurance, a leading insurer that shares Allianz’s values and commitment to customer excellence. This proposed transaction brings two strong businesses together for the benefit of Singapore’s customers and solidifies Allianz’s leadership position in the region.”
In its announcement, Allianz reiterated the importance of the Asia Pacific for the business, with the region generating nearly EUR 7.7bn in Total Business Volume across its Property & Casualty and Life/Health businesses in 2023.
The integration of Allianz and Income Insurance is expected to place Allianz in top positions across all segments—P&C, Health, and Life—in Singapore. The transaction is anticipated to yield significant synergy and capital optimisation, with a double-digit Return on Investment expected in the mid-term.
The transaction is expected to close in the fourth quarter of 2024 or the first quarter of 2025.
