German insurer Allianz said it will consider revising the proposed transaction structure for its deal with Singapore's Income Insurance due to concerns over the deal structure and Income’s ability to fulfill its social mission.
SINGAPORE - German insurer Allianz said late on Oct 14 that it will consider revisions to the proposed transaction structure toon concerns over the deal structure and the ability of the local insurer to continue its social mission . Allianz , which is listed in Germany, said it respects the Government’s position and will assess the situation with Income and NTUC Enterprise.
“We are convinced that partnering with Income Insurance, a company that shares Allianz’s values and commitment to customer excellence, will benefit Singapore’s customers and society,” it added. “We will now work closely with the relevant stakeholders to consider revisions to the proposed transaction structure,” Allianz said. Income and its parent NTUC Enterprise also said they will work closely with relevant stakeholders to decide on the next course of action. Mr Edwin Tong, who is Minister for Culture, Community and Youth and Second Minister for Law, said in Parliament on Oct 14 that the Government has decided that it would not be in the public interest for the transaction to proceed in its current form. First, there are doubts over Income’s ability to continue to fulfill its social mission. Second, a proposal by Allianz to undertake a capital reduction exercise to return $1.85 billion to shareholders, within the first three years after the deal is completed, do not align with earlier assurances made by Income. When Income embarked on a corporatisation exercise in 2022, it had obtained an exemption to allow it to carry over a surplus of $2 billion to the new corporate entity. If not for the exemption, the $2 billion sum would have gone to the Co-operative Societies Liquidation Account to benefit the co-op movement in Singapore as a whole. This is a requirement under the legal framework for the winding up of a cooperative. Following the Government’s decision to block the current deal, the Insurance Act will be amended on an urgent basis to allow the approval to be withheld
Finance Insurance Allianz Income Insurance Deal Structure Singapore Government Social Mission
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Allianz to consider revising Income offer after current deal blocked by Singapore GovtIncome and NTUC Enterprise said that they will work closely with relevant stakeholders to decide on the next course of action.
Read more »
Allianz's Stake in Income Insurance Sparks Criticism: Profit Over People?The planned acquisition of a majority stake in Income Insurance by German insurance giant Allianz has sparked criticism. Is former NTUC co-operative, Income Insurance, prioritizing profit over people? CNA speaks to experts to understand the implications.
Read more »
2 ST journalists win Sias awards for furthering investor education, Income-Allianz scoopThey were among 12 individuals and 50 companies that won awards in seven categories.
Read more »
Government halts Income-Allianz deal to safeguard public interestThe government will put a halt to the deal between NTUC Income and German insurer Allianz to protect public interest, said Minister for Culture, Community and Youth Edwin Tong.
Read more »
Allianz-Income deal off, ‘not in the public interest’ to proceed in current form: Edwin TongThe scrapping of the deal was announced in Parliament on Oct 14.
Read more »
Allianz-Income Deal in Singapore Scrapped Amid Public Interest ConcernsThe proposed acquisition of a controlling stake in local insurer Income Insurance by German insurer Allianz has been called off due to concerns over the deal's structure and potential impact on Income's social mission. The Singaporean government, after reviewing the transaction, decided it was not in the public interest to proceed with the deal in its current form.
Read more »