Allianz Group, a global insurer and asset manager, through its wholly owned subsidiary Allianz Europe B.V., has offered Singapore-domiciled insurer Income Insurance a pre-conditional voluntary cash general offer to acquire at least 51% of its shares.
This strategic move will propel Allianz from the ninth to the fourth largest composite insurer in Asia. The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of 2024 or the first quarter of 2025.
Allianz intends to offer S$40.58 per share for a total transaction value of S$~2.2 billion, approximately €1.5 billion. The integration of the businesses would result in top positions for Allianz in all business segments in Singapore.
The transaction is expected to generate a double-digit Return on Investment (ROI) for the insurer in the mid-term.
The acquisition leverages Allianz’s capabilities in underwriting, product development, and data analytics with Income Insurance’s market reach and strengths in distribution, partnerships, and people.
Income Insurance is deeply rooted in its home market and a trusted household name that serves around two million policyholders with a full range of Property-Casualty, Health and Life products.
Renate Wagner, Member of the Board of Management, Asia-Pacific, Allianz, commented, “We look forward to partnering with Income Insurance, a leading insurer that shares Allianz’s values and commitment to customer excellence.
“This proposed transaction brings two strong businesses together for the benefit of Singapore’s customers and solidifies Allianz’s leadership position in the region.”
Asia-Pacific is a strategically important growth region for Allianz, as it generated almost €7.7 billion in Total Business Volume across its P&C and L&H businesses in 2023.
