Allianz would be on the verge of interrupting its project acquisition of income insurance in Singapore, valued at US$2.2 billion, following increased public and regulatory scrutiny, as reported Bloomberg.
The German insurer initially aimed to obtain a majority stake in the Singaporean cooperative, marking a strategic step towards becoming the fourth composite insurer in Asia.
However, the proposed deal has run into trouble amid concerns it could undermine the legacy of income insurance serving middle- and low-income households.
In October, the Singapore Parliament introduced amendments to the Insurance Actgranting regulators the power to block transactions that do not meet the public interest.
These legislative updates further complicated Allianz’s efforts to complete the acquisition.
Despite promises To work with stakeholders to address objections, insiders suggest Allianz struggled to find a compromise that satisfied both public opinion and regulatory expectations.
For now, discussions are reportedly underway to officially withdraw the proposal, although no final decision has been made.
Representatives for Allianz and Income Insurance did not comment on the matter.
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