Allianz has announced plans to acquire a majority stake in Singapore’s Income Insurance through its subsidiary, Allianz Europe B.V.
The pre-conditional voluntary cash general offer aims to purchase at least 51 percent of Income Insurance’s shares, pending regulatory approval.
Allianz‘s offer of S$ 40.58 per share values the 51 percent stake at approximately SG$ 2.2 billion (EUR 1.5 billion).
Income Insurance, a well-established name in Singapore, serves around 2 million policyholders with a comprehensive range of property-casualty, health, and life insurance products.
These are distributed through agents, financial advisors, bancassurance, and direct channels.
Allianz said that this acquisition is expected to significantly boost its presence in Singapore, elevating it to one of the largest composite insurers in Asia.
The acquisition leverages Allianz’s expertise in underwriting, product development, and data analytics, combined with Income Insurance’s strong market reach and distribution capabilities.
The Asia-Pacific region remains a strategic growth area for Allianz, generating nearly EUR 7.7 billion in Total Business Volume across property-casualty and life/health businesses in 2023.
The transaction is anticipated to yield a double-digit Return on Investment (ROI) for Allianz in the mid-term, with closing expected in late 2024 or early 2025.
“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.”
said Renate Wagner, Member of the Board of Management of Allianz and responsible for the Asia-Pacific region.
Featured image credit: Edited from Freepik
