Income Insurance is considering new ways to provide liquidity for shareholders after the collapse of a proposed majority stake sale to German insurer Allianz, The Business Times reported.
At its annual general meeting on June 24, outgoing chairman Ronald Ong said the board is keeping all possibilities open, including a potential share buyback programme.
The move follows the Singapore government’s decision in October 2024 to block the Allianz deal, after the Ministry of Culture, Community and Youth (MCCY) raised concerns that the transaction could affect the insurer’s ability to meet its social objectives.
Ong noted that the S$2.2 billion proposal would have given minority shareholders a long-awaited means to exit their positions.
Under the plan, they would have had priority to tender their shares at S$40.58 each before NTUC Enterprise, which holds 72.8 percent of Income, stepped in to help Allianz reach a 51 percent stake.
Minority shareholders currently hold 27.2 percent of the company.
The Allianz offer was shelved after MCCY flagged the absence of binding provisions to ensure the insurer’s social mission would be upheld, even though NTUC Enterprise had committed in good faith to preserve it.
Ong said the board will take these concerns into account in any future proposals.
Following his planned retirement, the board has proposed that lead independent director Joy Tan be appointed as chair, pending her re-election and regulatory approval.
Ong will transition to focus on managing NTUC Enterprise’s private investment portfolio.
He has served as chair since December 2018 and is currently chairman of Morgan Stanley’s Southeast Asia operations.
In a separate speech, chief executive Andrew Yeo clarified that Ong recused himself from the decision to appoint Morgan Stanley as financial adviser for the Allianz deal, though he remained involved in board discussions.
For the financial year ended 31 December 2024, Income posted a net profit of S$44.8 million.
Total assets rose 2.5 percent to S$43.4 billion, with net asset value per share at S$31.97.
The board proposed a special dividend of S$0.208 per share, bringing the total payout for the year to S$0.416.
Featured image: Edited by Fintech News Singapore, based on image by Zhangxiao via Freepik
