Allianz plans to buy majority stake in Singapore's Income Insurance
FILE PHOTO: The logo of insurer Allianz SE is seen on the company building in Puteaux at the financial and business district of La Defense near Paris, outside Paris, France, May 14, 2018. REUTERS/Charles Platiau/File photo
FRANKFURT: Germany's Allianz said on Wednesday (Jul 17) that it was planning to buy a majority stake in Singapore's Income Insurance for around US$1.6 billion.
Allianz said it would offer S$40.58 per share for a transaction value of S$2.2 billion (US$1.64 billion), for 51 per cent of the shares in Income Insurance.
"This majority stake is expected to elevate Allianz’s presence in the fast-growing and attractive Singapore insurance market," Allianz said.
Allianz Asia Pacific's regional chief executive officer Anusha Thavarajah said the company is "committed to investing in Singapore by partnering with a well-respected local institution".
The company said it values the contribution of Income Insurance's employees in building the company and "will invest in its people through development, training and upskilling opportunities to build an organisation that is resilient and future-ready".
Allianz also said it intends for Income Insurance to continue to recognise the union and uphold the principles of good labour management relations as advocated by the tripartite partners in Singapore.
NTUC Enterprise chief executive officer Adeline Sum said: "We intend for Income Insurance to continue to be an important financially profitable and socially responsible business, in line with its enduring purpose of empowering financial well-being for all, which strongly aligns with Allianz’s values.”
The offer by Allianz comes at a time in which the insurance sector in Singapore is experiencing consolidation and increased deal activity.
