Income shareholders at AGM voice disappointment at failed Allianz deal

Some express wish to cash out shares; Income exploring share liquidity options

- Angela Tan and Kang Wan Chern Deputy Business Editor

German insurer Allianz's failed offer to buy a majority stake in Income Insurance disappointed many of Income's minority shareholders, who simply want to cash out their shares in the public non-listed home-grown insurer.

This sentiment was expressed by some of the 600 minority shareholders who attended Income's annual general meeting (AGM) on June 24, many of whom were seen streaming into The Star Theatre in Buona Vista at around 4pm, more than an hour before the meeting started.

The AGM was helmed by Income's outgoing chairman Ronald Ong and chief executive Andrew Yeo, who addressed questions from some 20 shareholders for about 3 1/2 hours.

During his opening speech, Mr Ong assured shareholders that "we are keeping our options open and are continuing to explore different share liquidity options, which can include a share buyback programme".

"We will update shareholders of any material development accordingly," he added.

While the media was not allowed to attend the meeting, retail shareholders there told The Straits Times about their key concerns, including that of Income's future.

One shareholder lamented that he was stuck with Income shares, which have a par value of $10 each but were once worth $40.58 a share - the price offered by Allianz when it sought to buy at least 51 per cent of Income in a $2.2 billion cash deal in July 2024.

The deal was blocked by the Government over concerns about its structure, which included a capital reduction plan where Income would return $1.85 billion in cash to shareholders within three years, and Income's ability to continue its social mission.

As a result, Allianz withdrew its offer in December 2024.

Today, the market value of Income shares is unclear as they are not publicly traded.