Allianz withdraws offer for Income Insurance

After the Singapore government decided to block the Allianz-Income deal, the German insurer decided to withdraw its $1.6 billion offer to acquire at least 51% of the shares in Income Insurance.

When the deal was blocked in October, a Singaporean government official said it is open to any new arrangement Income may wish to pursue, whether with Allianz or any other partners, as long as its current concerns are fully addressed.

In a statement, Allianz said that it remains convinced it is the right partner to support Income Insurance’s continued growth and its strategic mission for the benefit of Singapore’s people, but the decision to withdraw its offer at this time underscores Allianz’s financial discipline.

“We respect the Singapore Government’s decision. We still believe the combination of Allianz and Income Insurance would result in two strong businesses being brought together for the benefit of Income Insurance’s policyholders and a growing portion of Singapore’s customers. We regret having to make this decision but we will, without question, carry on supporting the Singapore insurance market’s continued growth and success.” – Renate Wagner, Member of the Board of Management of Allianz SE and responsible for the Asia-Pacific region.