American company says Allianz acquisition of Income Insurance unlikely to impact Singapore market

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Despite the optimistic forecast from the US credit ratings agency, the acquisition has sparked considerable debate among prominent Singaporeans.

SINGAPORE: American company Fitch Ratings, one of the “Big Three” credit rating agencies, has forecast that German conglomerate Allianz’s plan of taking the majority stake in Singapore’s Income Insurance will most likely not have significance in Singapore’s insurance market.

Earlier this month, Allianz disclosed plans to acquire a 51% stake in Income Insurance for approximately $1.6 billion. This acquisition could result in a rebranding for the Singapore insurer. Pending regulatory approval, NTUC Enterprise Co-operative Ltd will retain between 21.8% and 49% of shares, contingent on other shareholders’ decisions.

“The proposed acquisition aligns with Allianz’s strategic objective to grow inorganically in the non-life sector rather than the life insurance segment and to become a leader in its markets,” “I don’t think it’s a good idea to sell INCOME. It was founded to serve a social purpose and a social need. They remain valid today. I wish to argue that INCOME and Fairprice should never be sold.”the takeover bid, as well.

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Diplomat Tommy Koh asserts Income Insurance should not be sold to German company Allianz'It was founded to serve a social purpose and a social need... I wish to argue that INCOME and Fairprice should never be sold,' he exclaimed
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