Allianz is one of Europe’s most valuable financial firms by market capitalisation, and its acquisition of at least 51% would make it one of the largest acquisitions in Asia and its biggest deal in over three years.
The deal comes as Singapore’s insurance sector is experiencing a period of consolidation and increased deal activity. Allianz stated it would offer SGD 40.58 per share for a transaction value of SGD 2.2 billion (USD 1.64 billion). This equates to USD 30.4 per share, with a value of USD 1.23 billion.
Allianz stated that this acquisition would make it Asia’s fourth-largest insurer, up from ninth previously.
“This majority stake is expected to elevate Allianz’s presence in the fast-growing and attractive Singapore insurance market,” Allianz said.
Income Insurance noted that Allianz had shown a strong commitment to investing in Singapore and that its own market position ensured the rationale for the deal was strong and compelling.
Income’s largest shareholder, NTUC Enterprise, which held nearly 73% stake, said it would remain a “substantial” shareholder and was enthusiastic about the deal. The purchase is still subject to regulatory approval.
Allianz has been incrementally pushing into the Asian market, with its investment division expanding in China in June. Last year, Chinese Securities Regulators granted approval for Allianz Global Investors to establish an onshore fund management company.
