German insurance giant Allianz offers $1.6 billion (€1.5 billion) for a minimum stake of 51% for Singapore’s Income Insurance Ltd. A deal would turn the business into the fourth-largest composite insurer in Asia.
Europe’s largest insurer, Allianz, is aiming to substantially enhance its presence in Singapore. In a statement, Allianz said the offer was a subsidiary collaboration formed through Allianz Europe BV involving a voluntary cash general offer of $40.58 (€37.13) per share.
The insurance giant said Singapore’s role as a dominating financial hub in the region could create more opportunities for product development, underwriting, and data analytics. The deal could catapult the company from ninth to fourth position in Asia’s insurer market, it said.
Income insurance remains one of Singapore’s top four systemically important insurers. The transaction requires regulatory approval and is expected to come into force in the first quarter of next year. Global investment firm Morgan Stanley is reported to be assisting Income Insurance and NTUC on the deal but Morgan Stanley has refused to comment on the matter.
“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 Allianz board member Renate Wagner, who is responsible for the Asia-Pacific region.
Income Insurance said Allianz’s commitment to investing in Singapore, along with its position in the market, gave the deal an “engrossing” rationale.
Top shareholder NTUC Enterprise which holds some 73% of the shares, said it would continue as a “substantial” shareholder and supports the deal.
Allianz has established itself in Asia over the years, including its June investment decision to expand to China.
Last year, China’s security regulator approved Allianz’s decision to start an onshore fund management company.
