Germany Insurance Giant Allianz Cancels Offer to Buy 51% of Singapore $31 Billion Income Insurance Group for $1.64 Billion after Singapore Government Passed Insurance (Amendment) Bill on 16th October 2024 to Allow Singapore Government to Block the Acquisition
17th December 2024 | Hong Kong
Germany insurance giant Allianz has cancelled the offer to buy 51% of Singapore $31 billion Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company), after Singapore Government passed the Insurance (Amendment) Bill on 16th October 2024 to allow Singapore government to block the acquisition. In 2024 October, the Singapore Government has passed the Insurance (Amendment) Bill on 16th October 2024, allowing the Singapore government to block Germany insurance & asset management giant Allianz offer to buy Singapore $31 billion Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company), with Singapore government viewing the transaction as not in public interest. The amended bill now requires offeror (buyer) to obtain prior written approval from Monetary Authority of Singapore (MAS) to obtain effective control or become substantial shareholder of a licensed insurer incorporated in Singapore (See below for parliament speech). In 2024 July, Allianz announced to buy Singapore Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company). Income Insurance has around $31 billion assets, and was previously known as NTUC Income Insurance Co-operative. Allianz (16/12/24): “In light of the Singapore Government’s announcement during the parliament sitting on October 14 and subsequent changes to the Insurance Act, Allianz today – through its wholly owned subsidiary Allianz Europe B.V. – announced it has withdrawn its pre-conditional voluntary cash general offer to acquire at least 51 percent of the shares in Income Insurance. Allianz’s offer was announced on July 17, 2024. Allianz 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. The extensive discussions which Allianz and Income Insurance have had over the last months have further highlighted the shared values between the two groups. With 7.7 billion euros in Total Business Volume across its Property-Casualty and Life/Health retail insurance businesses in 2023, the Asia-Pacific region is a strategically important growth area for Allianz and Singapore as the regional financial services hub of Southeast Asia will continue to remain an important market for Allianz.”
“ Germany Insurance Giant Allianz Cancels offer to Buy 51% of Singapore $31 Billion Income Insurance Group for $1.64 Billion after Singapore Government Passed Insurance (Amendment) Bill on 16th October 2024 to Allow Singapore Government to Block the Acquisition “
Singapore Government Passed Insurance (Amendment) Bill on 16th October 2024 to Allow Singapore Government to Block Germany Insurance & Asset Management Giant Allianz Offer to Buy 51% of Singapore $31 Billion Income Insurance Group for $1.64 Billion, New Requirement to Obtain Prior Written Approval from Monetary Authority of Singapore to Obtain Effective Control or Become Substantial Shareholder of Licensed Insurer Incorporated in Singapore
18th October 2024 – The Singapore Government has passed the Insurance (Amendment) Bill on 16th October 2024, allowing the Singapore government to block Germany insurance & asset management giant Allianz offer to buy Singapore $31 billion Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company), with Singapore government viewing the transaction as not in public interest. The amended bill now requires offeror (buyer) to obtain prior written approval from Monetary Authority of Singapore (MAS) to obtain effective control or become substantial shareholder of a licensed insurer incorporated in Singapore (See below for parliament speech). In 2024 July, Allianz announced to buy Singapore Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company). Income Insurance has around $31 billion assets, and was previously known as NTUC Income Insurance Co-operative. Allianz current market value is around $111 billion (17/7/24), and owns leading global asset managers PIMCO & Allianz Global Investors. Allianz (17/7/24): “Today Allianz – through its wholly owned subsidiary Allianz Europe B.V. – announced a pre-conditional voluntary cash general offer to acquire at least 51 percent of the shares in leading Singapore insurer Income Insurance, subject to regulatory approval. Income Insurance is deeply rooted in its home market, is a trusted household name and serves approx. 2 million policyholders with a full range of Property-Casualty, Health and Life products distributed via agents and financial advisors as well as through bancassurance and direct channels. Allianz intends to offer SGD 40.58 per share for a total transaction value of approx. SGD 2.2 billion (approx. EUR 1.5 billion) for 51 percent 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 and establishes the company as one of the largest composite insurers in Asia. Singapore is a leading global financial hub, supported by rapid wealth growth and a strong regulatory environment. The acquisition leverages Allianz’s capabilities in underwriting, product development, and data analytics with Income Insurance’s impressive market reach and strengths in distribution, partnerships, and people. Asia-Pacific is a strategically important growth region for Allianz, having generated almost EUR 7.7 billion in Total Business Volume across its Property-Casualty and Life/Health businesses in 2023. The integration of the businesses would result in top positions for Allianz in all segments – P&C, Health, and Life – in Singapore. It would also position Allianz to realize significant synergy and capital optimization potential. The transaction is expected to generate a double-digit Return on Investment for Allianz in the mid-term. Closing is expected in the fourth quarter of 2024 or in the first quarter of 2025.”
“ Singapore Government Passed Insurance (Amendment) Bill on 16th October 2024 to Allow Singapore Government to Block Germany Insurance & Asset Management Giant Allianz Offer to Buy 51% of Singapore $31 Billion Income Insurance Group for $1.64 Billion, New Requirement to Obtain Prior Written Approval from Monetary Authority of Singapore to Obtain Effective Control or Become Substantial Shareholder of Licensed Insurer Incorporated in Singapore “
16th October 2024 – Insurance (Amendment) Bill – Second Reading Speech by Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, and Deputy Chairman of MAS, on behalf of Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Minister-in-charge of MAS, on 16 October 2024
1. Mr Deputy Speaker, on behalf of Mr Gan Kim Yong,
a. Deputy Prime Minister and Minister for Trade and Industry, and
b. Minister-in-charge of the Monetary Authority of Singapore (MAS)
2. I beg to move, “That the Bill be now read a second time”.
Introduction
3. In his Ministerial Statement on Monday, Minister Edwin Tong spoke about MCCY’s concerns on the proposed transaction between Allianz Europe B.V (Allianz) and NTUC Enterprise (NE) to enable Allianz to acquire a majority stake in Income Insurance Limited (Income), and the reasons why it would not be in the public interest for the transaction, in its current form, to proceed.
4. Minister Tong had explained that when Income proposed the transaction with Allianz, it was to find a strong partner that can complement NE in strengthening Income, so that Income can sustain its social mission. It is important to recognise that NE and Income had acted in good faith and their objective of wanting to go into this deal was to do the right thing, which is to strengthen Income, so that it could do well to continue to do good.
5. I would also like to reiterate that the Government does not have concerns over Allianz’s standing or suitability to acquire a majority stake in Income. The concern is over the terms and structure of this specific transaction, particularly as seen in the context of the preceding corporatisation exercise. The Government remains supportive of NE’s and Income’s efforts to find a strong partner, with Allianz or other partners, to strengthen Income’s capital base and market position.
6. As Income is now a corporate entity, it is no longer subject to the jurisdiction of the Registrar of Co-operative Societies, or Co-ops for short. The deal is still subject to MAS’ approval under the Insurance Act (or IA) for Allianz to become a substantial or controlling shareholder.
7. However, the IA does not expressly provide for MAS to consider MCCY’s views in applications where the insurer is either a Co-op or linked to a Co-op. We therefore propose to amend the IA to provide a clear statutory basis for MCCY’s views to be considered in any approval involving such applications.
Key Features of the Bill
8. Let me explain the key features of the Bill.
9. Under the IA, sections 26 and 27 require a person to seek the prior written approval of MAS to obtain effective control or become a substantial shareholder of a licensed insurer incorporated in Singapore.
10. When assessing an application under section 26 or 27, MAS considers a range of criteria on prudential grounds such as the financial strength and track record of the applicant and whether it is fit and proper. This assessment is focused primarily on the suitability of the proposed substantial shareholder or person obtaining effective control.
11. Given that insurance Co-ops are a special category of insurers with a social mission, we are proposing to amend the IA to provide for the Minister-in-charge of MAS to consider the views of the Minister responsible for the administration of the CSA, and to withhold approval involving such applications if the Minister-in-charge of MAS considers that it is in the public interest to do so. The Minister-in-charge of MAS will also take into account prudential considerations under the IA in making his decision.
12. The Bill applies specifically to a licensed insurer that is the subject of an application under section 26 or 27 of the IA, where:
a. the licensed insurer is a Co-op;
b. the licensed insurer has acquired the principal business or undertaking of a Co-op; or
c. a Co-op is a substantial shareholder or has effective control of the licensed insurer.
The second and third limbs will apply to Income as it took on the assets of Income Co-op when the latter corporatised, and NE as a Co-op is currently Income’s majority shareholder.
13. The Bill will allow the Minister-in-charge of MAS to impose conditions to an approval involving such applications. It also provides that there will be no avenue for appeals to the Minister in respect of MAS’ decision not to approve an application, on the basis that the Minister has withheld approval.
14. We are making the amendments on an urgent basis because the proposed transaction is under active consideration by Income’s shareholders.
15. Mr Deputy Speaker, I beg to move.
Singapore Government Blocks Germany Insurance & Asset Management Giant Allianz Offer to Buy 51% of Singapore $31 Billion Income Insurance Group for $1.64 Billion, Amends Bill to Require to Obtain Prior Written Approval from Monetary Authority of Singapore to Obtain Effective Control or Become Substantial Shareholder of Licensed Insurer Incorporated in Singapore
18th October 2024 – The Singapore government has blocked Germany insurance & asset management giant Allianz offer to buy Singapore $31 billion Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company), with Singapore government viewing the transaction as not in public interest. Singapore government is also amending the bill to require to obtain prior written approval from Monetary Authority of Singapore (MAS) to obtain effective control or become substantial shareholder of a licensed insurer incorporated in Singapore. Singapore Ministerial Statement by Mr Edwin Tong, Minister for Culture, Community and Youth & Second Minister for Law: “The Government has assessed the proposed transaction and has decided that it would not be in the public interest for the transaction, in its current form, to proceed … … As Income is now a corporate entity, it is no longer subject to the jurisdiction of the Registrar of Co-ops. The approval or otherwise of the proposed transaction, now rests with the MAS under the Insurance Act (“IA”). Sections 26 and 27 of the IA require a person to seek the prior written approval of MAS to obtain effective control or become a substantial shareholder of a licensed insurer incorporated in Singapore. The proposed transaction therefore requires MAS’ approval to proceed.” In 2024 July, Allianz announced to buy Singapore Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company). Income Insurance has around $31 billion assets, and was previously known as NTUC Income Insurance Co-operative. Allianz current market value is around $111 billion (17/7/24), and owns leading global asset managers PIMCO & Allianz Global Investors. Allianz (17/7/24): “Today Allianz – through its wholly owned subsidiary Allianz Europe B.V. – announced a pre-conditional voluntary cash general offer to acquire at least 51 percent of the shares in leading Singapore insurer Income Insurance, subject to regulatory approval. Income Insurance is deeply rooted in its home market, is a trusted household name and serves approx. 2 million policyholders with a full range of Property-Casualty, Health and Life products distributed via agents and financial advisors as well as through bancassurance and direct channels. Allianz intends to offer SGD 40.58 per share for a total transaction value of approx. SGD 2.2 billion (approx. EUR 1.5 billion) for 51 percent 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 and establishes the company as one of the largest composite insurers in Asia. Singapore is a leading global financial hub, supported by rapid wealth growth and a strong regulatory environment. The acquisition leverages Allianz’s capabilities in underwriting, product development, and data analytics with Income Insurance’s impressive market reach and strengths in distribution, partnerships, and people. Asia-Pacific is a strategically important growth region for Allianz, having generated almost EUR 7.7 billion in Total Business Volume across its Property-Casualty and Life/Health businesses in 2023. The integration of the businesses would result in top positions for Allianz in all segments – P&C, Health, and Life – in Singapore. It would also position Allianz to realize significant synergy and capital optimization potential. The transaction is expected to generate a double-digit Return on Investment for Allianz in the mid-term. Closing is expected in the fourth quarter of 2024 or in the first quarter of 2025.”
Germany Insurance & Asset Management Giant Allianz to Buy 51% of Singapore Income Insurance Group for $1.64 Billion a SGD 40.58 Per Share, Income Insurance with $31 Billion Assets was Previously Known as NTUC Income Insurance Co-operative, Allianz Market Value at $111 Billion & Owns Leading Global Asset Managers PIMCO & Allianz Global Investors
18th July 2024 – Germany insurance & asset management giant Allianz has announced to buy Singapore Income Insurance group for $1.64 billion (EUR 1.5 billion, SGD 2.2 billion) at SGD 40.58 per share (private company). Income Insurance has around $31 billion assets, and was previously known as NTUC Income Insurance Co-operative. Allianz current market value is around $111 billion (17/7/24), and owns leading global asset managers PIMCO & Allianz Global Investors. Allianz (17/7/24): “Today Allianz – through its wholly owned subsidiary Allianz Europe B.V. – announced a pre-conditional voluntary cash general offer to acquire at least 51 percent of the shares in leading Singapore insurer Income Insurance, subject to regulatory approval. Income Insurance is deeply rooted in its home market, is a trusted household name and serves approx. 2 million policyholders with a full range of Property-Casualty, Health and Life products distributed via agents and financial advisors as well as through bancassurance and direct channels. Allianz intends to offer SGD 40.58 per share for a total transaction value of approx. SGD 2.2 billion (approx. EUR 1.5 billion) for 51 percent 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 and establishes the company as one of the largest composite insurers in Asia. Singapore is a leading global financial hub, supported by rapid wealth growth and a strong regulatory environment. The acquisition leverages Allianz’s capabilities in underwriting, product development, and data analytics with Income Insurance’s impressive market reach and strengths in distribution, partnerships, and people. Asia-Pacific is a strategically important growth region for Allianz, having generated almost EUR 7.7 billion in Total Business Volume across its Property-Casualty and Life/Health businesses in 2023. The integration of the businesses would result in top positions for Allianz in all segments – P&C, Health, and Life – in Singapore. It would also position Allianz to realize significant synergy and capital optimization potential. The transaction is expected to generate a double-digit Return on Investment for Allianz in the mid-term. Closing is expected in the fourth quarter of 2024 or in the first quarter of 2025.”
“ Germany Insurance & Asset Management Giant Allianz to Buy 51% of Singapore Income Insurance Group for $1.64 Billion a SGD 40.58 Per Share, Income Insurance with $31 Billion Assets was Previously Known as NTUC Income Insurance Co-operative, Allianz Market Value at $111 Billion & Owns Leading Global Asset Managers PIMCO & Allianz Global Investors “
Renate Wagner, Member of the Board of Management of Allianz: “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.”
Income Insurance (17/7/24): “Income Insurance Limited (“Income Insurance”) refers to the announcement from Allianz Europe B.V. (the “Offeror” or “Allianz”) on 17 July 2024 in which it stated its intention to acquire at least 51% (the “Offer”) of the Shares in Income Insurance, subject to the fulfilment of the pre-condition, referred to in paragraph 2 of the Pre-Conditional Offer Announcement. The Offer is also subject to the approval of the shareholders of Income Insurance for the amendments to the constitution and the proposed name change of Income Insurance. Following the close of the Offer, Allianz will become the majority shareholder of Income Insurance while NTUC Enterprise will continue to retain a substantial stake. As stated in the Pre-Conditional Offer Announcement, Allianz has a strong and profitable presence in Southeast Asia and is committed to investing in Singapore and partnering with a well-respected and trusted local institution. Income Insurance’s market leadership, strong brand equity and established history in Singapore is a strong and compelling rationale for a market leading set-up in Singapore, the regional financial services hub of Southeast Asia. Allianz believes that the combination of Income Insurance’s strengths and Allianz’s global capabilities is expected to create a highly competitive composite insurer in Singapore. Income Insurance’s competitive strengths can be further enhanced by integrating its capabilities in distribution, partnership, products and people and leveraging Allianz’s global insurance franchise, asset management capabilities, technical excellence, technology and product development, distribution and reinsurance expertise. As stated in the Pre-Conditional Offer Announcement, Allianz intends for Income Insurance to continue to honour the terms of the existing policies underwritten by Income Insurance and ensure a seamless transition with no impact on policyholders. It also intends for Income Insurance to continue participating in national insurance programmes, as well as to continue its social commitment and existing pledge of S$100 million over 10 years from 2021 to promote social mobility among the low-income, support the well-being of seniors, and champion environmental causes. As mentioned in the media statement by Allianz Asia Pacific, Allianz values the contribution of Income Insurance’s employees in building Income Insurance into the leading insurance company and brand it is today and will invest in its people through development, training and upskilling opportunities to build an organisation that is resilient and future-ready. 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. Allianz is also committed to bringing in the right technology, training, and tools to support the growth and professionalisation of Income Insurance’s distribution. For more details, kindly refer to the Pre-Conditional Offer Announcement from Allianz, the announcement from the board of Income Insurance, as well as the media statement from NTUC Enterprise at income.com.sg/pre-convgo. Morgan Stanley is acting as the exclusive financial advisor to Income Insurance on this transaction.”
Germany Insurance & Asset Management Giant Allianz in Talks with Singapore Income Insurance Group in Potential Share Transaction, Income Insurance with $31 Billion Assets was Previously Known as NTUC Income Insurance Co-operative, Allianz Market Value at $108 Billion & Owns Leading Global Asset Managers PIMCO & Allianz Global Investors
The Allianz Group is one of the world’s leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 746 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.19th June 2024 – Germany insurance & asset management giant Allianz is currently in talks with Singapore Income Insurance group in a potential share transaction. Income Insurance has around $31 billion assets, and was previously known as NTUC Income Insurance Co-operative. Allianz current market value is around $108 billion (19/6/24), and owns leading global asset managers PIMCO & Allianz Global Investors. Income Insurance (14/6/24): “Income Insurance Limited (“Income Insurance”) wishes to announce that it is currently in discussion with Allianz on a transaction relating to the shares of Income Insurance (the “Shares”). Income Insurance wishes to emphasise that there is no assurance that any transaction will materialise or that any definitive or binding agreement will be reached. Income Insurance will make further announcements if and when there are any material developments which warrant disclosure, in compliance with applicable laws and regulations. Shareholders of Income Insurance (“Shareholders”) are advised to exercise caution when dealing in the Shares and to refrain from taking any action in respect of the Shares which may be prejudicial to their interests. Shareholders are advised to read this Announcement and any further announcements by Income Insurance carefully. In the event that Shareholders wish to deal in the Shares, they should seek their own professional advice. The directors of Income Insurance (including any director who may have delegated detailed supervision of the preparation of this Announcement) have taken all reasonable care to ensure that the facts stated and opinions expressed in this Announcement are fair and accurate and that there are no other material facts not contained in this Announcement, the omission of which would make any statement in this Announcement misleading. The directors of Income Insurance jointly and severally accept responsibility accordingly.”
Income Insurance Limited (Income Insurance) is one of the leading composite insurers in Singapore, offering life, health and general insurance. Established in Singapore to plug a social need for insurance in 1970, Income Insurance continues to put people first by serving the protection, savings and investment needs of individuals, families and businesses today. Its lifestyle-centric and data-driven approach to insurance and financial planning puts the company at the forefront of innovative solutions that empowers the people it serves with better financial well-being. Additionally, Income Insurance is committed to being a responsible business that champions the environment and builds stronger communities by supporting financial inclusion, education for youth-in-need and seniors’ well-being.
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