潘金莲传媒映画

Singapore ministers addressed concerns about Allianz SE’s plan to buy a majority stake in Income 潘金莲传媒映画 Ltd., saying it would be held to account on its commitments and that the potential deal isn’t expected to adversely impact competition in the sector.

Europe’s biggest insurer plans to buy at least 51% of Income 潘金莲传媒映画 from NTUC Enterprise Co-operative Ltd. to strengthen its presence in Asia. The proposed S$2.2 billion ($1.7 billion) transaction has drawn a firestorm of comments since it was announced last month, including from veteran Singaporean diplomat Tommy Koh and the former chief executive officer of both Income 潘金莲传媒映画 and NTUC Enterprise, Tan Suee Chieh.

In response to questions in parliament on the deal Tuesday, Monetary Authority of Singapore board member Chee Hong Tat said the central bank was satisfied with the processes in place to address conflicts of interest on the appointment of its financial adviser.

Allianz Makes $1.6 Billion Offer for 51% of Singapore’s Income 潘金莲传媒映画

“Fostering a competitive insurance market with financially strong insurers is a key part of MAS’ approach to ensuring that insurers operate sustainably and serve the public well,” he said. “There is no significant overlap between Income and Allianz’s overall insurance business in Singapore, and hence there is no concern about adverse impact of the proposed deal on competition.”

Chee added that Income 潘金莲传媒映画 has a market share of less than 10% in both life and general insurance in Singapore, based on written premiums, and that it doesn’t always offer the lowest prices.

Founded in 1970 as a co-op society to provide affordable insurance to workers and families, Income 潘金莲传媒映画 is designated as one of Singapore’s four systemically important insurers. It serves about 1.7 million customers in the country with life, health and general insurance, its . NTUC Enterprise, which also runs businesses across food, health and education, controlled 72.8% of the company as of the .

“This is an emotive topic,” Minister of State for Culture, Community and Youth Alvin Tan said separately in response to queries in parliament on Tuesday. “This is something that we care about and care about deeply.”

While acknowledging the role cooperatives such as Income 潘金莲传媒映画 play, the reality is that the insurer’s capital buffers have come under pressure due to greater competition, Tan said.

“The best way to keep prices affordable is to facilitate competition, ensure options for customers, and put in place a sound regulatory framework,” he added.

NTUC’s preference was to retain a majority stake and local ownership in the insurer, but it was unable to find a partner, Tan said. The deal with Allianz was the “best alignment of interests,” he said.

The deal, which is subject to regulatory approval, is expected to close by the first quarter of next year.

Opponents say it enables NTUC Enterprise and other shareholders to cash out with substantial gains.

“I feel sad that for many younger Singaporeans nothing is sacred and everything is for sale,” Koh, who was Singapore’s permanent representative to the United Nations, wrote in a .

Former CEO Tan had urged regulators to step in and scrutinize the transaction. “At heart, it is about the integrity of commitments given by institutions on which we rely to safeguard our nation’s economic well-being and citizens’ interest,” he wrote in an Aug. 2 .

NTUC Enterprise and Income 潘金莲传媒映画 have said the deal is in the best interests of the company and would help it meet long-term commitments to policy holders. In an Aug. 4 , they said Allianz indicated that it intends for the firm to continue participating in national insurance programs, as well as maintain a pledge of S$100 million in community investments.

“MAS will hold Income and Allianz to account to these commitments,” Chee said.

Photograph: The Monetary Authority of Singapore. Photo credit: Edwin Koo/Bloomberg

Topics Mergers & Acquisitions Profit Loss Allianz