Allianz’s plan Acquires 51% stake in Income Insurance The S$2.2 billion acquisition is a strategic move aimed at strengthening the company’s competitive position in Singapore’s life insurance market, where it currently has a market share of less than 10%.
The partnership with Allianz, a global leader in insurance and asset management, is expected to enable Income Insurance to compete more effectively in a market dominated by regional and global competitors.
The partnership will strengthen the company’s relevance and resilience, enabling it to better serve Singapore families and meet its obligations to policyholders.
The strategic alliance is expected to provide Income Insurance with the capital support it needs to grow, especially in the capital-intensive insurance industry.
This follows significant capital injections made by NTUC Enterprise at the peak of the Covid-19 pandemic in 2020, which played a key role in supporting the company’s solvency.
NTUC Enterprise chairman Lim Boon Heng emphasised the organisation’s ongoing commitment to Income Insurance and said NTUC Enterprise would remain an active shareholder.
He emphasised that the Singapore labour movement has historically provided vital capital for income insurance, and that this has been particularly important in challenging times such as the pandemic.
Lim also noted that Allianz’s strength in its financial position will provide additional support to Income Insurance if needed, further enhancing the company’s growth potential.
The Allianz proposal includes the opportunity for minority shareholders to sell their shares for S$40.58 per share, with NTUC Enterprise set to remain the majority shareholder after the transaction.
Lim added:
“Income Insurance will continue to provide affordable and accessible insurance options to underserved and low-income customers through products such as LUV and SilverCare insurance.”
Secondly, Income Insurance will continue to participate in the National Insurance Programme in partnership with the CPF Board. Thirdly, Income Insurance will continue to offer very competitive pricing.”
