S&P Global Ratings has placed Income Insurance on CreditWatch with negative implications in response to Allianz SE’s recent announcement of its planned acquisition.
Allianz SE’s strategic move to acquire Income Insurance highlights its focus on bolstering its presence in Southeast Asia, particularly in Singapore, according to S&P Global Ratings. If approved, the acquisition will see Allianz integrating Allianz Insurance Singapore (AIS) into the newly formed entity, which will operate under the name Allianz Income Insurance Singapore.
The integration process, which involves a scheme of transfer or amalgamation, is contingent on regulatory and shareholder approvals. Allianz Insurance Singapore will continue to function as a significant subsidiary within the Allianz Group. The completion of this process could extend several months, with a projected finalization by April 2025.
Allianz is anticipated to present a comprehensive integration plan for AIS, subject to the necessary regulatory approvals. Meanwhile, S&P Global Ratings will closely monitor the progress of the acquisition and evaluate AIS’s evolving role within the Allianz Group.
In light of the acquisition news, S&P Global Ratings has placed Income Insurance’s ratings on CreditWatch with a negative outlook. The agency is currently assessing the potential impact of the acquisition on Income Insurance’s creditworthiness. Allianz SE aims to finalize the transaction by April 2025, pending regulatory approval.
There is a possibility that S&P may downgrade Income Insurance within the next 90 days or potentially longer. This potential downgrade is associated with concerns about diminished extraordinary support from the Singapore government, through its major shareholder, NTUC Enterprise Co-operative.
