MAS responds to Tan’s letters on Allianz-Income deal process

The insurer did not submit an application for capital reduction.

The Monetary Authority of Singapore (MAS) has issued a detailed response to three open letters from former Income Insurance CEO Tan Suee Chieh, clarifying its regulatory actions regarding Allianz Europe B.V.’s proposed acquisition of Income Insurance Limited.

Tan’s letters—published in August 2024 and April 2025—raised questions about MAS’ oversight of the attempted transaction. In response, MAS reiterated that Allianz’s proposal to acquire a 51% stake in Income was subject to regulatory approval under the Insurance Act.

Whilst MAS granted preliminary consent for Allianz and NTUC Enterprise to negotiate the deal, formal approval for Allianz to gain control had not been submitted as of October 2024.

MAS confirmed it had received Allianz’s preliminary business plan in July 2024, which included a projected capital reduction. 

However, MAS stressed that no application for capital reduction had been submitted and no approval had been given. 

The regulator stated it had assessed the proposal on prudential grounds—focusing on Allianz’s financial strength, its suitability as a substantial shareholder, and the protection of policyholders. 

At the time, Income was projected to remain well-capitalised even after the planned reduction.

MAS said that after parliamentary discussions on 6 and 14 October 2024, it alerted the Ministry of Culture, Community and Youth (MCCY) to the planned capital reduction. 

MCCY raised concerns about whether Income could continue fulfilling its social mission, especially after having transferred over $2b in surplus to the corporatised entity. 

These issues had not been fully disclosed during earlier discussions on corporatisation.

As a result, the government passed amendments to the Insurance Act on 16 October 2024 to allow MAS to formally consider social mission impacts in its approval process.

The move effectively halted the deal. Allianz later withdrew its offer on 16 December 2024.

MAS maintained that it followed due regulatory process and prudential standards throughout, and had acted appropriately by involving MCCY once broader concerns arose.