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FINANCIALS: Allianz Deal In Asia: Sensible But Small, Little Credit Impact

FINANCIALS

Allianz (ALVGR: Aa2/AA/AA-) is buying a Singapore insurance company for EUR1.5bn. Appears a 1-2%, relatively sensible deal so should not be a spread mover, we feel.

  • Allianz is buying “at least” 51% of Income Insurance for SGD2.2bn (around EUR1.5bn). Income Ins is a top Singapore general insurer and will make Allianz, reportedly, #1 in the territory across “P&C, Health and Life”. DJ is reporting this would make Allianz the #4 composite insurer in Asia more widely.
  • Allianz is claiming a double-digit RoI “in the mid-term” with closing expected in 4Q24 or 1Q25.
  • This is only a 1-2% deal for Allianz so should not be a spread mover but appears an interesting, if small, incremental move to tap into Asian growth.

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