FAQs
1. What was Allianz’s Offer?
- On 17 July 2024, Allianz made a Pre-Conditional Voluntary Cash General Offer (“Offer”) to acquire at least 51% of the shares in Income Insurance, subject to the fulfilment of a pre-condition (regulatory approval).
- The Offer was withdrawn by Allianz on 16 December 2024. Please refer to the Press Release dated 16 December 2024.
2. Why did the Government decide that the Allianz’s Offer should not proceed in its current form?
- The Government decided the Offer should not proceed due to concerns about the terms and structure of the deal in its current form, particularly in ensuring that Income Insurance’s social mission would be upheld after the transaction.
3. Why is the Offer withdrawn instead of revising the transaction structure?
- Income Insurance is not in a position to respond on behalf of Allianz on the reasons for its withdrawal of the Offer.
4. How does the withdrawal of the Offer affect Income Insurance?
- The withdrawal of the Offer does not affect operations and it remains business as usual for Income Insurance.
5. Now that Allianz has withdrawn its Offer, what option do shareholders have to liquidate their shares?
- Shareholders can sell their shares at a price and on terms agreed between a willing buyer and willing seller.
6. How does the withdrawal of the Offer affect policyholders?
- The withdrawal of the Offer has no impact on policyholders and Income Insurance will continue to honour the terms and conditions of existing policies.
7. Is Income Insurance financially strong?
- Income Insurance’s capital adequacy ratio currently remains well above the minimum regulatory requirement. Income Insurance maintains a strong capital adequacy post Covid including various levels of capital buffer to cater for severe stress scenarios. As a Domestic Systemically Important Insurer (DSII), Income Insurance is also subject to higher regulatory standards and supervision to protect the interest of its policyholders.
8. Will the liquidity programme for Income Insurance shares offered by Phillip Securities Pte Ltd (“PSPL”)/Alta Exchange continue to operate?
- The trading of Income Insurance shares on the Alta Exchange ceased on 17 October 2024. We are not aware of any resumption of the trading of Income Insurance shares on Alta Exchange.
- If you have appointed PSPL as your custodian, we understand that this relationship will continue unless you decide to terminate it. Please speak to PSPL about the custodianship of your Income Insurance shares and any liquidity programme for Income Insurance shares offered by PSPL accordingly.
9. Is Income Insurance planning to launch another share liquidity option?
- Income Insurance will consider exploring share liquidity options for shareholders to unlock the value of their shares. In the meantime, shareholders can continue to buy and sell their shares on a willing-buyer and willing-seller basis and transact at a price that the parties agree on.
