SINGAPORE - NTUC Enterprise will continue to back Income Insurance and keep it on track to serve its social objectives even after the sale of a large stake to German insurer Allianz, said its chairman Lim Boon Heng on July 25.

Income will continue to provide affordable and accessible insurance options to the underserved and lower-income customers through products such as the LUV and SilverCare policies, he said in a statement.

He added that Income will continue to participate in national insurance programmes in partnership with the Central Provident Fund Board, and that Income products will be priced “very competitively”.

“NTUC Enterprise will also continue as an active shareholder of Income Insurance to keep it to its purpose and deliver social commitments to its policyholders,” Mr Lim said.

He said Allianz, a global player, was roped in to help Income better compete.

“Income Insurance’s life insurance market share has been less than 10 per cent in the past 10 years. Allianz’s offer to be a majority shareholder will enable Income Insurance to be even more relevant and resilient over the long term, to serve families in Singapore, and fulfil its obligations to its policyholders,” Mr Lim said.

He added that the labour movement here has provided Income with capital for its business over the years.

An example would be the capital injection by NTUC Enterprise in 2020 to support Income’s solvency at the peak of the Covid-19 pandemic when its capital buffers came under pressure.

“Insurance is a capital-intensive business and to grow, there is a need to tap the capital markets. The strength of Allianz’s financial position will provide additional support to Income Insurance where required,” he said.

In a separate statement, Income said that NTUC Enterprise, as a substantial shareholder following the close of the deal, will remain firmly committed to Income and its stakeholders, including policyholders and shareholders.

Income stressed that even with Allianz as a majority shareholder, it would continue ongoing commitments, including social ones, as stated in the pre-conditional offer announcement on July 17.

What this means is that Allianz will continue to participate in national insurance programmes, invest in th...