Allianz scraps proposed acquisition of Singapore’s Income Insurance: Source

Allianz has scrapped

a proposed €1.5 billion (S$2.1 billion) acquisition

of a 51 per cent stake in Singapore firm Income Insurance because of public opposition to the deal, a source familiar with the matter said.

The move would have lifted Allianz to become the fourth-largest composite insurer in Asia, from ninth, but

sparked critique

in Singapore because of concerns that it would

detract from a mission

to provide affordable insurance for lower-income workers.

The decision will likely be announced publicly in the coming week, the source said, declining to be named. Allianz and Income declined to comment when contacted by The Straits Times on Dec 14.

Bloomberg reported earlier on Dec 13 that the German insurer was close to scrapping the deal.

Income Insurance, which has around 1.7 million customers and offers life, health and property insurance, was founded in the 1970s to offer insurance to poorer segments of the population.

Singapore Prime Minister Lawrence Wong said in October that the city state would block Allianz’s bid, but

remained open to a new deal

if its concerns could be addressed, which Allianz said at the time

it would attempt to do

.
REUTERS