Allianz May Drop $1.63b Bid for Income Insurance

Allianz, the German insurer, is reportedly on the verge of pulling the plug on its planned $1.63 billion acquisition of a 51% stake in Singapore’s Income Insurance, as per sources familiar with the matter who spoke to Bloomberg.

The deal, which was initially announced back in July, has run into significant hurdles. Allianz has been unable to overcome the regulatory objections that have been raised. Moreover, it has faced a barrage of criticism in Singapore. Concerns were voiced over the possibility of premium hikes and a perceived shift away from Income Insurance’s core mission of supporting middle- and lower-income workers. In October, the Singapore government even stated that the deal, in its current form, did not serve the public interest.

Subsequently, Allianz had pledged to explore alterations to the transaction structure in consultation with stakeholders. However, it has struggled to find a viable resolution. A spokesperson for Allianz declined to comment when approached by Bloomberg, and representatives for Income Insurance were not available outside of Singapore’s business hours. The situation remains uncertain, but it appears that Allianz may announce its decision regarding the fate of this troubled acquisition in the coming days.

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