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SINGAPORE: Exactly one month after the government blocked a proposed deal between Income Insurance and Allianz, the German insurer said it has had various discussions, but has not reached a final decision.

"These discussions are still ongoing and there is no guarantee that any transaction will take place," the company said in an update posted on the Singapore Exchange on Thursday (Nov 14). "Further announcements will be made when appropriate."

Allianz, Income, its parent company NTUC Enterprise and their advisers have "studied carefully" the implications of Culture, Community and Youth Minister Edwin Tong's speech in parliament over the past month, Allianz said.

Income also posted a statement titled "monthly update on potential transaction with Allianz".

It said it has had discussions on amendments to the proposed transaction structure, and has taken into account concerns raised in the ministerial statement and amendments to the Insurance Act, which were approved by parliament last month.

"Income Insurance will make further announcements if and when there are any material developments which warrant disclosure, in compliance with applicable laws and regulations," the statement said. 

"NOT IN THE PUBLIC INTEREST" FOR DEAL TO PROCEED

Allianz announced on Jul 17 that it was planning to buy a majority stake in Income Insurance.

Though the Singaporean company is a corporate entity, it previously functioned as a cooperative, and people were concerned about whether its original social mission would be forgotten if Allianz became the majority shareholder.

Former NTUC Income CEO Tan Suee Chieh spoke out against the proposed deal, along with his predecessor Tan Kin Lian and Ambassador-at-Large Tommy Koh.

Questions were also raised in parliament, but it was only in October that Mr Tong announced the deal would be stopped.

He pointed to Allianz's plan to extract S$1.85 billion (US$1.37 billion) to return to shareholders within three years of the transaction being approved.

That figure is close to the amount Income was supposed to return to the Cooperative Societies Liquidation Account when it became a corporate entity in 2022. It was allowed to keep the funds at the time.

“We find it difficult to reconcile the proposed substantial capital reduction, soon after the transaction is completed, with Income’s representations to MCCY during the corporatisation exercise that it was aiming to build up capital resources and enhance its financial strength,” said Mr Tong in October.

"It is the government’s view that it is not in the public interest for the transaction, in its current form, to proceed," he said.

Following that, both Income and Allianz said they respected the government's decision and would work with relevant stakeholders to decide what to do next.

Experts told ������Ƶ last month that Allianz is unlikely to pursue a revised deal. They said companies such as DBS, Temasek or Ping An could be potential buyers if Allianz decides not to go ahead.