You might have heard the news that Allianz, a big international insurance company, wants to buy a big part of NTUC Income. This has left many people wondering what it means for their insurance policies.
If you recall, NTUC Income was an insurance co-operative in Singapore. In 2022, it was announced that NTUC Income would transition from a co-operative to a corporation, becoming Income Insurance Limited. This corporatisation was completed on September 1, 2022.
On July 17, 2024, Allianz Europe B.V. announced a Pre-conditional Voluntary Cash General Offer to acquire at least 51% of the shares in Income Insurance Limited.
What are the impacts on the policyholders and the insurance landscape in Singapore? Let’s break it down.
Continuity of Policies
Allianz plans to maintain Income Insurance’s participation in national insurance programs. They have also committed to recognizing the union and upholding good labour-management relations, as advocated by Singapore’s tripartite partners.
Historically, when insurance companies are taken over, policyholders typically experience minimal disruption. The new owner usually honours existing policies, ensuring that your coverage remains intact.
This is not the first time an insurance company in Singapore has undergone a takeover. Let’s look at a few examples:
Most recently, OCBC Bank’s acquisition of Great Eastern Life: While not a traditional takeover, this strategic move deepened the financial conglomerate’s presence in the insurance sector.Aviva’s Acquisition by Singlife (2020): Policyholders experienced a smooth transition, with Singlife maintaining Aviva’s existing policies and services.AXA and HSBC Insurance (2012) – HSBC acquired AXA Insurance in Singapore in 2012, aiming to strengthen its foothold in the local market. Policyholders experienced a wider range of insurance solutions after they merged their product offerings.
According to the public announcement, Allianz has assured that the terms of existing policies underwritten by Income Insurance will continue to be honoured. This means that policyholders should not expect any immediate changes to