Follow-up Actions Conducted under Co-operative Societies Act after Allianz's Withdrawal of Bid for Stake in Income Insurance

Mr Neil Parekh Nimil Rajnikant asked the Minister for Culture, Community and Youth (a) whether the Ministry has initiated any further actions within the purview of the Co-operative Societies Act since Allianz Europe BV's (Allianz) withdrawal of its offer to acquire a 51 percent stake of Income Insurance Limited (Income) on 16 December 2024; and (b) what are the lessons learnt by the Government from the proposed sale of a controlling stake in Income to Allianz and the decision by Allianz to withdraw its offer.

At the Parliamentary Sittings on 14 and 16 October 2024, the Government had explained why it would not be in the public interest for the proposed sale of a majority stake in Income Insurance Limited (Income) to Allianz Europe B.V. (Allianz) to proceed and why the Government had decided to amend the Insurance Act to stop the deal. Minister Chee Hong Tat and I also addressed a wide range of questions from Members during those Sittings. [Please refer to "Pre-conditional Voluntary General Offer by Allianz for Income Insurance", Official Report, 14 October 2024, Vol 95, Issue 142, Ministerial Statements section; and "Insurance (Amendment) Bill", Official Report, 16 October 2024, Vol 95, Issue 144, Second Reading Bills section.]

Allianz and Income are both corporate entities and not subject to the Co‑operative Societies Act. This was why the Government intervened to stop the deal by way of amendments to the Insurance Act, and no further action within the purview of the Co-operative Societies Act is required.

The Ministry of Culture, Community and Youth (MCCY) is considering future amendments to the Co-operative Societies Act to enable the Government to have stronger levers over co-operative societies that may wish to be corporatised. When ready, MCCY will table the proposed amendments to the Co-operative Societies Act in Parliament for discussion and approval.