Allianz to become a leader in Singapore insurance market with planned acquisition of majority stake in Income Insurance
Allianz – through its wholly owned subsidiary Allianz Europe B.V. – announced a preconditional voluntary cash general offer to acquire at least 51 percent of the shares in leading Singapore insurer Income Insurance, subject to regulatory approval.
Income Insurance is deeply rooted in its home market, is a trusted household name and serves ~2 million policyholders with a full range of Property-Casualty, Health and Life products distributed via agents and financial advisors as well as through bancassurance and direct channels.
Allianz intends to offer S$ 40.58 per share for a total transaction value of S$ ~2.2 billion (EUR ~1.5 billion) for 51 percent of the shares in Income Insurance.
This majority stake is expected to elevate Allianz’s presence in the fast-growing and attractive Singapore insurance market and establishes the company as one of the largest composite insurers in Asia. Singapore is a leading global financial hub, supported by rapid wealth growth and a strong regulatory environment.
The acquisition leverages Allianz’s capabilities in underwriting, product development, and data analytics with Income Insurance’s impressive market reach and strengths in distribution, partnerships, and people.
Asia-Pacific is a strategically important growth region for Allianz, having generated almost EUR 7.7 billion in Total Business Volume across its Property-Casualty and Life/Health businesses in 2023.
The integration of the businesses would result in top positions for Allianz in all segments – P&C, Health, and Life – in Singapore. It would also position Allianz to realize significant synergy and capital optimization potential. The transaction is expected to generate a double-digit Return on Investment for Allianz in the mid-term. Closing is expected in the fourth quarter of 2024 or in the first quarter of 2025.
“We look forward to partnering with Income Insurance, a leading insurer that shares Allianz’s values and commitment to customer excellence,“ says Renate Wagner, Member of the Board of Management of Allianz and responsible for the Asia-Pacific region. “This proposed transaction brings two strong businesses together for the benefit of Singapore’s customers and solidifies Allianz’s leadership position in the region.”
Swiss Re and Income Insurance co-launch Singapore’s first cancer insurance product with guaranteed post-cancer term option
Swiss Re has partnered with composite insurer, Income Insurance Limited (Income Insurance), on a first-in-market cancer insurance product that offers a guaranteed post-cancer term option and support throughout the journey from diagnosis to recovery.
Complete Cancer Care provides continuous care in addition to financial assistance to those diagnosed with cancer. For those with advanced stage cancer, the product extends a guaranteed post-cancer coverage option for the insured without needing prerequisite health assessment, even after a cancer diagnosis.
The proposition focuses on support for active cancer treatment with monthly payouts and a premium waiver benefit, on top of conventional offerings, which predominantly centre around lump sum payments upon diagnosis. It also offers a hospice care benefit to support patients during palliative care.
To cater to the ageing population in Singapore, the product offers the highest entry age, up to 74 years old, with coverage to a maximum age of 84 years old.
“The launch of Complete Cancer Care demonstrates our dedication to supporting policyholders in their time of need by enabling our partners as they innovate and adapt to evolving customer needs,” said Daisy Ning, Head of Life & Health Reinsurance APAC ex China, Swiss Re. “We are committed to helping insurers tailor comprehensive insurance solutions that proactively address the health concerns of individuals facing cancer.”
In anticipation of Singapore’s cancer treatment costs exceeding SGD 2 billion by 20301, the Ministry of Health introduced the Cancer Drug List (CDL) to negotiate lower drug prices2. This initiative, aimed at improving cost-effectiveness and reducing patients’ financial strain underscores the importance of comprehensive insurance offerings. Notably the country’s nine per cent insurance penetration surpasses the Asia average but lags Hong Kong (18%) and Taiwan (14%), per findings from The Swiss Re Institute.
“The cancer journey is daunting and often filled with high emotional and financial stress for our customers and their loved ones,” said Dhiren Amin, Chief Customer Officer, Income Insurance. “To allay some fears so that they can focus on treatment, we are pleased to partner with a like-minded company, Swiss Re, to offer a holistic cancer proposition that provides complete care, from cancer diagnosis to recovery. Being the first in Singapore with a guaranteed post-cancer cover option, we hope to build our customers’ resilience to recover and live the fulfilling life they wanted, when their treatment is over.”
The launch of Complete Cancer Care is a continuation of Swiss Re and Income Insurance’s collaborative effort to address the insurance needs of Singaporeans and address the country’s protection gap challenges. In March 2022, both companies announced a longevity arrangement for Singapore’s aging population3.
1 Ministry of Health Singapore: “Recommendations of the MediShield Life Council on MediShield Life’s Coverage for Outpatient Cancer Drug Treatments”
2 Ministry of Health Singapore: Cancer Drug List, 23 Feb 2023
3 Swiss Re: “Swiss Re partners with NTUC Income on a first-in-market longevity arrangement to shield against future variation in Income’s annuity book”, 08 Mar 2022