German insurer Allianz on Monday (Dec 16) announced that it has withdrawn its offer to acquire a majority stake in Income Insurance.
German insurer Allianz on Monday announced that it has withdrawn its offer to acquire a majority stake in Income Insurance .
Moreover, the ideal partner would not only support Income financially but also bring in expertise, technology and innovation to modernise its operations and position the company for sustainable growth in a competitive insurance market, said Associate Professor Shinichi Kamiya from Nanyang Business School's division of banking and finance.
"The key question here is not whether a buyer can be found, but whether Income can secure the right partner - one capable of driving operational innovation, such as leveraging artificial intelligence, enhancing product development and expanding digital capabilities for long-term growth," he added. The government’s decision to step in and Allianz’s retreat highlight the importance of ensuring that any future transaction aligns with Income’s social mission and its cooperative roots, he said.
The Income-Allianz saga, however, could cause global insurance companies to now be cautious when investing in local firms given the recent legislative rectification, said NUS' Prof Loh.In Assoc Prof Kamiya's view, the German insurer's withdrawal is unlikely to deter other international investors immediately, though it does highlight certain complexities that can arise in transactions with traditional Singaporean firms.
At least in the short term, Allianz's withdrawal will not significantly impact Income's operations given that the company is well-established and continues to operate effectively, said Assoc Prof Kamiya."Without an external partner to inject fresh ideas, technology, and resources, Income may struggle to innovate and keep pace with a rapidly evolving insurance industry," he said.
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