Following the recent deal with Allianz, Income Insurance is committed to maintaining its provision of affordable insurance policies for the lower-income demographic, NTUC Enterprise Chairman Lim Boon Heng assured on Thursday (25 July). This comes in response to concerns raised regarding the German multinational’s move to acquire a controlling interest in the local insurance cooperative.
During the announcement, Mr. Lim emphasized, “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.”
On July 17, Allianz publicized its intention to purchase a 51 percent stake in Income Insurance for an approximate US$1.6 billion. The offer made by the German financial services giant appraises shares at S$40.58 each, which sets the overall deal valuation at S$2.2 billion (US$1.64 billion). After the transaction, NTUC Enterprise, which currently holds a 72.8 percent stake, is expected to retain a significant ownership position.
In his statements, Mr. Lim reiterated that Income would sustain its competitive pricing model. He also reaffirmed Income’s commitment to participating in national insurance schemes in collaboration with the CPF Board.
Mr. Lim articulated the benefits of aligning with a “global entity renowned for its insurance and asset management expertise,” which he believes will enable Income to “compete more vigorously” in the industry. He acknowledged that over the past decade, Income’s market share in life insurance has been below 10 percent.
He further detailed that the strategic partnership with Allianz is designed to strengthen Income Insurance’s long-term relevance and resilience to effectively serve Singaporean families and ensure that their future needs are met. Mr. Lim also explained the importance of a robust, expanding insurance company to honor commitments to policyholders across the life span of their policies.
