Allianz to Work Closely With Stakeholders on Proposed Deal With Income Insurance

By Amanda Lee

German insurer Allianz will work closely with relevant stakeholders to consider revisions to its proposed deal to buy a majority stake in Singapore insurance company Income Insurance.

This comes after the Singapore government said it didn't think the deal, in its current form, was in the public's interest.

"We respect the government's position and will assess the situation with Income Insurance Limited and NTUC Enterprise Co-operative Ltd," Allianz said in a statement late Monday.

NTUC Enterprise has a 72.8% stake in Income. Allianz announced in July that it wanted to buy a 51% stake in Income Insurance for 2.2 billion Singapore dollars, equivalent to US$1.68 billion, as part of its plan to expand in the region.

Income Insurance separately said it has consistently acted in good faith to safeguard stakeholders' best interest.

The deal sparked public concerns, with objections from several prominent figures who questioned if Income Insurance would fulfill its social mission of providing affordable insurance when Allianz controlled it.

Write to Amanda Lee at amanda.lee@wsj.com