Allianz may drop $1.63b bid for Income Insurance: Report

Sources familiar with the matter told Bloomberg.

Allianz is reportedly close to abandoning its planned $1.63b acquisition of a 51% stake in Singapore’s Income Insurance following public backlash and government concerns, according to Bloomberg’s sources.

The German insurer has been unable to address regulatory objections and may announce its decision in the coming days, sources familiar with the matter said. Allianz initially unveiled the deal in July. 

However, the transaction faced strong criticism in Singapore, with concerns over potential premium hikes and the perceived departure from Income Insurance’s mission to support middle- and lower-income workers.  

In October, the Singapore government stated the deal, in its current form, was not in the public interest. Allianz subsequently said it would explore changes to the transaction structure in consultation with stakeholders but has since struggled to find a resolution.  

A spokesperson for Allianz declined to commen for Bloomberg, and representatives for Income Insurance were unavailable outside Singapore’s business hours.