Munich-headquartered Allianz is planning to expand its presence in Singapore with the purchase of a majority stake in a local insurer.
Allianz is planning to acquire at least a 51 percent stake in Singapore-based Income Insurance, according to a statement. The German insurer has made an offer of S$40.58 ($30.27) per share for a total transaction value of S$2.2 billion.
«This majority stake is expected to elevate Allianz’s presence in the fast-growing and attractive Singapore insurance market and establishes the company as one of the largest composite insurers in Asia,» Allianz said.
Acquisition Benefits
The transaction, slated for closing in the fourth quarter of 2024 or the first quarter of 2025, is expected to generate a double-digit return on investment for Allianz in the mid-term. The firm also noted business benefits from leveraging its capabilities in underwriting, product development and data analytics with Income Insurance’s market reach as well as strengths in distribution, partnerships and people.
«We look forward to partnering with Income Insurance, a leading insurer that shares Allianz’s values and commitment to customer excellence,» said Renate Wagner, an Allianz management board member who is responsible for APAC. «This proposed transaction brings two strong businesses together for the benefit of Singapore’s customers and solidifies Allianz’s leadership position in the region.»
