NTUC Enterprise, Income Insurance defend Allianz deal amidst stakeholder concerns

Suee Chieh Tan claimed that NTUC Enterprise raised its stake in the co-operative.

NTUC Enterprise and Income Insurance addressed objections raised by Suee Chieh Tan concerning Allianz's intent to acquire a 51% stake in Income Insurance, which involved the fairness and transparency of the proposed transaction.

Tan's concerns were made public in a letter to the Monetary Authority of Singapore (MAS) on 2 August.

NTUC Enterprise and Income Insurance addressed several points raised by Tan in a joint statement, clarifying that cooperative shares, which NTUC Income members held, were valued at par (US$7.5 or S$10 per share) when issued and were not equity shares with a fluctuating market value. 

The statement also noted that NTUC Enterprise had converted all its shares to permanent shares in 2018 to support Income Insurance’s capital adequacy, a move that was not extended to ordinary members to preserve their flexibility to redeem shares.

The statement further highlighted that during the corporatisation of NTUC Income in 2022, all cooperative shares were voluntarily converted to Income Insurance shares on a one-to-one basis, providing minority shareholders with equity shares that unlock the full value of their holdings. 

As a result, minority shareholders saw their voting rights increase from 0.3% to 26.2%. 

Additionally, NTUC Enterprise stated that the resolutions for corporatisation were overwhelmingly approved by shareholders, with 99.99% voting in favour.

NTUC Enterprise and Income Insurance defended their decision to partner with Allianz, describing the German financial services giant as a strong and aligned partner capable of bolstering Income Insurance’s financial sustainability. 

The statement noted Allianz’s high credit rating and commitment to continuing Income Insurance’s social mission in Singapore.

Finally, the statement reassured minority shareholders that should they choose to accept Allianz’s offer of US$30.7 (S$40.58) per share, they would be given priority in tendering their shares. 

The offer price reflects an annualised return significantly higher than the Straits Times Index over the past 30 years.

(US$1.00 = S$1.32)