Allianz is reportedly on the brink of halting its planned acquisition of Income Insurance in Singapore, valued at US$2.2 billion, following heightened public and regulatory scrutiny, as reported by Bloomberg.
The German insurer initially aimed to secure a majority interest in the Singaporean cooperative, marking a strategic move to become the fourth-largest composite insurer in Asia.
However, the proposed deal encountered challenges due to concerns that it could undermine Income Insurance’s legacy of serving middle- and lower-income households.
In October, Singapore’s Parliament introduced amendments to the Insurance Act, granting regulators the authority to block transactions that fail to align with public interest.
These legislative updates have further complicated Allianz’s efforts to proceed with the acquisition.
Despite pledges to work with stakeholders to address objections, insiders suggest that Allianz has struggled to find a compromise that satisfies both public sentiment and regulatory expectations.
As of now, discussions are reportedly underway to formally withdraw the proposal, though no final decision has been made.
Representatives for both Allianz and Income Insurance have not commented on the matter.
Featured image credit: Edited from Unsplash
