The Singapore government has announced that it is halting German insurance giant Allianz’s proposed acquisition of local insurer Income Insurance, citing public interest concerns. The deal was originally valued at S$2.2 billion, under which Allianz planned to acquire a majority stake in Income Insurance.

Authorities stated that the terms and structure of the transaction in its current form, particularly the arrangements for capital returns, risk compromising Income Insurance’s ability to fulfill its social mission as a cooperative insurer. This would undermine its commitment to providing inclusive and affordable insurance services to the Singapore public.