Allianz Abandons US$1.5 Billion Acquisition of Income Insurance
Deal Scrapped Amid Public Opposition
Allianz, a German insurer, has decided to scrap its planned US$1.5 billion acquisition of a 51% stake in Singaporean firm Income Insurance, citing public opposition to the deal, a source familiar with the matter said.
Concerns Over Affordable Insurance
The move would have lifted Allianz to the fourth-largest composite insurer in Asia, from ninth, but sparked concerns that it would detract from a mission to provide affordable insurance for lower-income workers. Income Insurance, which has around 1.7 million customers, offers life, health, and property insurance, and was founded in the 1970s to cater to the insurance needs of poorer parts of the population.
Singapore’s Opposition
Singapore’s prime minister had earlier expressed opposition to the deal, stating that the city-state would block Allianz’s bid if its concerns were not addressed. However, Allianz had said it would attempt to address these concerns, but ultimately decided to abandon the deal.
Decision to be Announced
The decision is expected to be publicly announced in the coming week, according to the source, who wished to remain anonymous. Allianz declined to comment on the matter.
FAQs
Q: Why did Allianz abandon the acquisition of Income Insurance?
A: Allianz scrapped the deal due to public opposition, citing concerns that it would detract from a mission to provide affordable insurance for lower-income workers.
Q: What are the concerns surrounding the acquisition?
A: The acquisition would have lifted Allianz to the fourth-largest composite insurer in Asia, but sparked concerns that it would undermine the mission to provide affordable insurance for lower-income workers.
Q: What is Income Insurance?
A: Income Insurance is a Singaporean firm that offers life, health, and property insurance, and was founded in the 1970s to cater to the insurance needs of poorer parts of the population.
