Allianz’s recently announced proposed acquisition of Income Insurance marks an important step in its strategy to strengthen its presence in Southeast Asia, particularly in Singapore, according to S&P Global Ratings.
Subject to regulatory and shareholder approvals, Allianz plans to integrate Allianz Insurance Singapore (AIS) into the newly acquired entity, which will be renamed Allianz Income Insurance Singapore. The integration will be carried out through a transfer or plan of merger, with AIS remaining a key subsidiary in Allianz’s portfolio.
The integration and completion of the acquisition is expected to take several months and could be completed by April 2025. Allianz expects to present a comprehensive integration plan for AIS upon regulatory approval.
S&P Global Ratings will closely monitor the acquisition and assess the role of AIS in the Allianz structure. In the meantime, S&P has placed Income Insurance’s ratings on credit watch with negative implications following the acquisition announcement. The agency is assessing the potential impact of the acquisition on Income Insurance’s credit ratings, with the possibility of a downgrade in the next 90 days or more.
The possible downgrade is attributed to concerns over reduced extraordinary support from the Singapore government, as the company’s major shareholder is NTUC Enterprise Co-operative. Allianz SE expects the transaction to be completed by April 2025, subject to necessary regulatory approvals.
Related topics:
