SINGAPORE: Income Insurance will continue to provide affordable insurance for lower-income customers after the deal with Allianz, said NTUC Enterprise chairman Lim Boon Heng on Thursday (Jul 25) amid concerns about the German company buying a majority stake in the Singapore co-operative.
“NTUC Enterprise will also continue as an active shareholder of Income Insurance to keep it to its purpose and deliver social commitments to its policyholders,” added Mr Lim.
Germany’s Allianz announced on Jul 17 that it was planning to buy a majority stake in Income Insurance for about US$1.6 billion.
It said it would offer S$40.58 per share for a transaction value of S$2.2 billion (US$1.64 billion), for 51 per cent of the shares in Income Insurance.
NTUC Enterprise currently has a 72.8 per cent stake in Income. It will remain a substantial shareholder if the sale goes through.
In his clarification on Thursday, Mr Lim said Income will continue to “price its products very competitively”.
He reiterated that it would continue to take part in national insurance programmes in partnership with the CPF Board.
Bringing in a “global player with proven insurance and asset management capabilities” would help Income “compete more effectively”, Mr Lim said.
“Income Insurance’s life insurance market share has been less than 10 per cent in the past 10 years,” he added.
“Allianz’s offer to be a majority shareholder will enable Income Insurance to be even more relevant and resilient over the long term, to serve families in Singapore, and fulfil its obligations to its policyholders.
“Given that insurance has a long tail – people buy policies when they are young, and depend on them when they are old – a strong, thriving and growing insurance company will ensure their expectations are met.”
