MAS to assess capital plans in Allianz-Income deal

It will evaluate if Allianz’ acquisition meets regulatory requirements.

The Monetary Authority of Singapore (MAS) will evaluate Allianz’s acquisition of Income Insurance to ensure the deal meets regulatory requirements, said Gan Kim Yong, deputy prime minister and chairman of MAS, in response to a query. 

MAS will examine Income’s business strategy and capital management plan after Allianz submits its application to take control of the insurer. 

The queries made by Assoc. Prof. Jamus Jerome Lim, MP, Sengkang GRC were (a) whether, in MAS’ review of Allianz’s plan to acquire Income Insurance Ltd, it required a commitment from Allianz to provide a capital adequacy injection to grow Income Insurance Ltd across all its business lines beyond the $2.2b that Allianz will be paying; (b) if so, how much and over what time period is this commitment; and (c) if not, how will MAS ensure Allianz will not be allowed to rationalise Income Insurance Ltd’s business after its purchase.