SINGAPORE: German insurer Allianz on Monday (Dec 16) announced that it has withdrawn its offer to acquire a majority stake in Income Insurance.
This comes after the Singapore government raised concerns about the proposed deal, which was first announced on Jul 17.
Under the proposed transaction, Allianz would have acquired a 51 per cent stake in Income.
The announcement triggered a public outcry, with concerns over whether Income would continue its social mission.
Culture, Community and Youth Minister Edwin Tong told parliament in a ministerial statement on Oct 14 that the proposed transaction, in its current form “would not be in the public interest”.
While the government said it would not allow the proposed transaction to proceed, it said it was open to new arrangements if the concerns highlighted are fully addressed.
Allianz said at the time that it would consider revisions to the proposed transaction structure.
On Monday, Allianz said in a media release that its decision to scrap the deal was made in light of the Singapore government expressing its views on why the transaction should not proceed on its present terms and the subsequent changes to the Insurance Act.
"Allianz remains convinced it is the right partner to support Income Insurance's continued growth and its strategic mission for the benefit of Singapore's people, but the decision to withdraw its offer at this time underscores Allianz's financial discipline.
The extensive discussions which Allianz and Income Insurance have had over the last months have further highlighted the shared values between the two groups," it said.
Member of the Board of Management of Allianz SE, Renate Wagner, said Allianz respects the Singapore government's decision.
"We still believe the combination of Allianz and Income Insurance would result in two strong businesses being brought together for the benefit of Income Insurance's policyholders and a growing portion of Singapore's customers. We regret having to make this decision but we will, without question, carry on supporting the Singapore insurance market's continued growth and success."
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This comes after the Singapore government raised concerns about the proposed deal, which was first announced on Jul 17.
Under the proposed transaction, Allianz would have acquired a 51 per cent stake in Income.
The announcement triggered a public outcry, with concerns over whether Income would continue its social mission.
Culture, Community and Youth Minister Edwin Tong told parliament in a ministerial statement on Oct 14 that the proposed transaction, in its current form “would not be in the public interest”.
While the government said it would not allow the proposed transaction to proceed, it said it was open to new arrangements if the concerns highlighted are fully addressed.
Allianz said at the time that it would consider revisions to the proposed transaction structure.
On Monday, Allianz said in a media release that its decision to scrap the deal was made in light of the Singapore government expressing its views on why the transaction should not proceed on its present terms and the subsequent changes to the Insurance Act.
"Allianz remains convinced it is the right partner to support Income Insurance's continued growth and its strategic mission for the benefit of Singapore's people, but the decision to withdraw its offer at this time underscores Allianz's financial discipline.
The extensive discussions which Allianz and Income Insurance have had over the last months have further highlighted the shared values between the two groups," it said.
Member of the Board of Management of Allianz SE, Renate Wagner, said Allianz respects the Singapore government's decision.
"We still believe the combination of Allianz and Income Insurance would result in two strong businesses being brought together for the benefit of Income Insurance's policyholders and a growing portion of Singapore's customers. We regret having to make this decision but we will, without question, carry on supporting the Singapore insurance market's continued growth and success."
Continue reading...