Allianz ($ALV) has withdrawn its offer to acquire at least 51% of Income Insurance Ltd for SG$2.2 billion after the Singaporean government rejected the proposed deal. The German insurance giant's decision followed the government's reservations regarding the transaction expressed on October 14, alongside proposed amendments to the country's Insurance Act. Earlier, Allianz, through its Allianz Europe unit, had made a pre-conditional voluntary cash general offer of SG$40.58 per share in July aimed at securing a majority stake in Income Insurance.
This acquisition would have positioned Allianz as the fourth-largest composite insurer in Asia, improving its standing from ninth. Renate Wagner, a member of Allianz's management board responsible for the Asia-Pacific region, stated, "We respect the Singapore Government's decision. We regret having to make this decision but we will, without question, carry on supporting the Singapore insurance market's continued growth and success." Allianz reiterated its confidence in the strength and potential of its existing operations in the Asia-Pacific region, emphasizing Singapore's importance as a strategic hub for financial services.
The company remains optimistic about the Asia-Pacific market, reporting a total business volume of 7.7 billion euros across its property and casualty and life and health segments in 2023..