Deal boosts Allianz to top ranks in Singapore’s market

Allianz’s Solvency II ratio is expected to reach 203% in Q1 2024.

Last week’s news of Allianz’s plan to acquire 51% majority stake in Singapore’s Income Insurance for US$1.64b (S$2.2b) could push the former into the higher ranks.

Credit research company FitchSolutions, CreditSights, perceived Allianz’s announcement to push the insurer five spots up to the 4th-largest composite insurer in the region.

This could also mean a top spot in Singapore’s property & casualty (P&C), health, and life insurance market.

Allianz’s Solvency II ratio is expected to reach 203% in the first quarter of the year, CreditSights said.

For another ratings agency,  Frank Yuen, Vice President – Senior Credit Officer at Moody’s Ratings said “The potential capital support from Allianz SE will enhance Income Insurance’s financial flexibility to pursue other strategic initiatives including M&A and inorganic growth opportunities. Income Insurance will also benefit from the strong asset management capabilities of Allianz, which could help expand its product scope and client reach,”

“Meanwhile, the near-term impact on Singapore’s competitive landscape in Singapore will be limited, with several established APAC insurance groups already having material market shares” Yuend added.