Allianz Offer To Acquire Income Insurance

Many Singaporean expressed concerns that Income Insurance will stop prioritizing the needs of Singapore workers are warranted because the goals of German insurer Allianz may not fully align with the original mission of the Singaporean company.

Mr Tan Suee Chieh, former CEO of NTUC Income Co-operative, also weighed in, calling it a "breach of good faith" given that the assurance from NTUC Enterprise to remain as majority shareholder was used to alleviate concerns about the corporatization in 2022.

The sentiments are of course valid as many Singaporean still want a social enterprise to offer (life insurance, general insurance) products. Singaporean think of Income Insurance as a co-operative of NTUC rather than a corporate entity. They fear that it will no longer prioritize the needs of Singapore workers, especially those who are middle- to low-income.

Those concerns are justified since Allianz is a large multinational corporation. Over time, the new entity’s focus might shift from social good to profit maximization. But on the flip side, the proposed acquisition could also help Income Insurance stay competitive and expand coverage.

Advantages & Benefits - Contrary to public concerns about higher premiums and reduced access to policies, Allianz is likely to preserve Income’s value proposition of providing accessible, comprehensive, and affordable insurance solutions to maintain its prominent position in Singapore.

Last week, Allianz announced that it would offer S$40.58 per share for 51 per cent of shares in Income Insurance. The total transaction value would be S$2.2 billion. The deal is pending regulatory approval.