SINGAPORE: European employer Allianz is unlikely to amend a proposed package to acquire a majority stake in Income Insurance, after the deal was blocked by the Singapore government , earlier in October, according to some experts.
What’s following, therefore, if Income also needs a companion in the long run?
According to Professor Lawrence Loh of the Business School at the National University of Singapore, a regional company like DBS or Temasek may buy or invest in what a Nominated Member of Parliament referred to as a “national treasure”  ,
He said Singapore’s largest lender would be a “natural prospect” having emerged from new” problems” of recurring service disruptions, leading to non-essential actions being paused for six weeks.
Prof. Loh noted that DBS had a strong plan presence in the past, but that it was sold to CGNU, a British insurer, after which it eventually changed its name to Aviva before merging with Singlife, which in turn became a thoroughly owned company of Sumitomo Life Insurance Company in 2024.
Somewhere, rivals like OCBC increased its stake in employer Great Eastern , to 93 per share in July, while UOB is caregiver to the United Overseas Insurance company.
” For DBS, I think they might consider completing their investment. Comprehensive is, going forward, dynamic but lucrative”, said Prof Loh, who is also chairman of the center for management and conservation at NUS.  ,
He added that getting an expense from Temasek, which the business also has a cultural mission, was another possibility.  ,
He acknowledged that a state investment entering the healthcare sector and competing in the commercial space might not be good for the magnification.
Nanyang Technological University (NTU) Associate Professor Shinichi Kamiya cited the possibility of DBS and Temasek as prospective clients, but questioned whether they would view” major value” in revenue.
” Additionally, these companies may not function as long-term corporate partners due to a lack of insurance expertise that Income does require”, said the scientific, who’s from NTU’s insurance risk and funding research institute.
Instead, he referred to global insurers who might want to establish themselves in Singapore.
Assoc Prof. Kamiya added,” Key participants like Ping An and Zurich may see this as an opportunity to expand their presence in the area.”
In response to questions about what it would do if the Allianz deal were to go through, Income directed CNA to its Oct. 14 speech, in which it stated that it would review and consider changes to the Insurance Act into account when deciding the following course of action.
PARTNERSHIP NECESSARY?
The Income-Allianz deal was blocked because of a planned capital extraction where S$ 1.85 billion ( US$ 1.4 billion ) would be returned to shareholders within three years.
This number is close to the income cap when it converted from a co-operative to a business object in 2022. Then, the funds would have to be refunded to the Collaborative Societies Liquidation Account.
Although Income is still a good and successful insurer, its long-term viability and growth may be in jeopardized without a reliable partner, according to experts.
” Income may need to delay until the Singaporean government recognizes the necessity of a proper collaboration,” said Assoc Prof. Kamiya. It’s possible that this realization will take time to thoroughly manifest.
Additionally, Prof. Loh noted that Income may not be able to fly solo without a more effective player backing its operations.