Singapore
NTUC Enterprise Chairman assures affordable insurance for lower-income customers amid Allianz deal concerns
NTUC Enterprise chairman Lim Boon Heng assured that Income Insurance will continue offering affordable insurance for lower-income customers after the Allianz deal, amid public concerns about the sale.
![](https://gutzymedia.s3.ap-northeast-2.amazonaws.com/wp/2024/07/25134748/lim-boon-heng.png)
SINGAPORE — Income Insurance will continue to provide affordable insurance for lower-income customers following the deal with Allianz, NTUC Enterprise chairman Lim Boon Heng stated in a statement on Thursday (25 July).
His comments come in response to concerns surrounding the German company’s acquisition of a majority stake in the Singapore co-operative.
“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,” added Mr Lim, a former Minister of the People’s Action Party.
On 17 July, Allianz announced its plans to purchase a majority stake in Income Insurance for approximately US$1.6 billion. The offer includes S$40.58 per share for a transaction value of S$2.2 billion (US$1.64 billion) for 51 percent of the shares in Income Insurance.
NTUC Enterprise, currently holding a 72.8 percent stake in Income Insurance, will remain a substantial shareholder if the sale is finalized.
In his clarification on Thursday, Mr Lim assured that Income would continue to “price its products very competitively” and reiterated its commitment to participate in national insurance programmes in partnership with the CPF Board.
Bringing in a “global player with proven insurance and asset management capabilities” would help Income “compete more effectively,” Mr Lim stated, noting that Income Insurance’s life insurance market share has been less than 10 percent over the past decade.
“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,” he added. “Given that insurance has a long tail – people buy policies when they are young and depend on them when they are old – a strong, thriving and growing insurance company will ensure their expectations are met.”
Income Insurance, established in 1970 as the first co-operative society by Singapore’s labour movement, maintains a social mission to provide affordable insurance to workers and families. Formerly known as NTUC Income Insurance Co-operative, it remains the only insurance co-operative in Singapore, serving around 2 million customers with life, health, general insurance, and investment-linked products.
Concerns about the possible sale have been voiced by former CEO of NTUC Income Co-operative Tan Suee Chieh and Ambassador-at-large Professor Tommy Koh.
Dr Koh highlighted the origins of NTUC Income, stating, “INCOME started life as a cooperative of NTUC like Fairprice. The idea was to offer insurance to the people at affordable rates. A few years ago, it was made into a company and ceased to be a cooperative. Now we are told that it may be sold to a German insurance company.”
Dr Koh emphasized the social mission of NTUC Income, arguing, “I don’t think it’s a good idea to sell INCOME. It was founded to serve a social purpose and a social need. They remain valid today. I wish to argue that INCOME and Fairprice should never be sold.”
In a Facebook post, Mr Tan cited Allianz’s Group CEO Oliver Baete’s remarks about building “a resoundingly profitable business,” suggesting this ethos was “diametrically opposite” to the co-operative’s aim.
“We wanted to have as much reach to Singaporeans (the top line), not to maximise profits but to maximise social impact,” Mr Tan said, urging opposition to the deal.
Mr Tan had also previously opposed the corporatisation of the insurance co-operative in 2022 and pointed out the reversal of the promise made by Income CEO Andrew Yeo that NTUC Enterprise would continue to hold majority shares in the new entity.
Public sentiment has also surfaced online. One Reddit commenter wrote, “Many customers, myself included, signed up when NTUC was still a cooperative. It was a selling point, as the agent mentioned that a cooperative means when they have excess investment returns, it goes to policy holders instead of shareholders. Customers signed 30-year policies on the back of that and we are held to the yearly payments. But we are no longer getting the excess investment returns that we were promised.”
There is growing public discomfort with the deal, as highlighted by Gerard L Pennefather, Chairman of Huntington Investments, in an open letter.
He emphasized that 2 million Singaporeans have entrusted their lives and possessions to Income Insurance for over 50 years and have every right to be concerned about the sale. Pennefather argued that the deal does not make economic or strategic sense, citing Income’s strong financial performance compared to Allianz’s substantial losses in Singapore over the past three years.
Over the years, the Singapore labour movement has provided capital to support Income’s business. Mr Lim noted a capital injection by NTUC Enterprise in 2020 to maintain solvency during the COVID-19 pandemic. “Insurance is a capital-intensive business and to grow, there is a need to tap the capital markets,” said Mr Lim, adding that Allianz’s financial strength would bolster Income Insurance as needed.
He mentioned that since Income became a public non-listed company in 2022, minority shareholders have sought share liquidity. “When the offer is launched, minority shareholders will have the opportunity to tender their shares ahead of NTUC Enterprise and can choose to tender all, any or none of their shares during the offer period,” Mr Lim explained.
The offer’s launch is subject to regulatory approval and is expected to close in the fourth quarter of this year or the first quarter of next year, Income said in a separate statement.
![](https://gutzy.asia/wp-content/uploads/2023/10/Gutzy-Logo-whiteS.png)
-
Politics1 week ago
Jamus Lim on Minister Chee Hong Tat’s remarks on fiscal policy: Calls for genuine debate over rhetoric
-
Politics2 weeks ago
SM Lee: Singaporeans must ‘change attitudes’ as Govt promises ‘bold and necessary changes’
-
Community1 week ago
Toast Box faces backlash and boycott calls amid price increases
-
Media7 days ago
Notice to Our Readers: Moving Back to The Online Citizen
-
Singapore1 week ago
Singapore introduces new scheme in April 2025 offering up to S$6,000 in financial support for retrenched workers
-
Politics1 week ago
Jamus Lim raises concerns over high cost of living and its impact on Singaporeans’ sense of belonging
-
Opinion1 week ago
Chee Hong Tat’s call for fiscal prudence rings hollow amid contradictory government spending
-
Singapore1 week ago
Tan Suee Chieh: Sacrificing NTUC Income’s values for short-term gains undermines its foundation
Boon Heng, how to trust you? Your contribution to Income is to sell it?
Is boon heng gonna cry crocodile tears again in public like he wayang previously?
How does it benefit Singaporeans if they already said they want to make profits after the purchase?
StandardSillyPoreSuperScript designed specifically to assure, reassure and then, to assure again, … that no one will be left behind, or fall through the “cracks of costs” !!!
lower income – earn how much for premium to stay affordable? good luck to higher income and how much is higher income? 3k?
sadly the way it is
Verbal assurances are just saliva. Some political saliva are very toxic and poisonous.
When judges appointed in SG politically can give double meaning decisions or even abrogate their professionalism to pander to political over rides, WHAT MORE IS AN ASSURANCE???
One can ACCEPT verbal assurances if this chap tells us HE IS LYING ON OATH?
Just wondering how much Income shareholding does this ex-NTUC chief held directly and indirectly which he stand to gain?
He didn’t even bother to define what he meant by affordable? Under what terms and conditions?
As for NTUC Fairprice as a social enterprise, does the products they carries really affordable that shoppers can purchase without second thought?
VTO. VTO.
remain “affordable”?
like … our public housing???
GO TO HELL
With no white knights coming from within TH controlled GLCs .The assurance put forth by Pappy’s X minister Lim to placate Income’s local clients further confirm the majority sell out to Allianz is almost a done deal.What puzzles everyone is how come icon Income can end up with the present liquidity squeeze and therefore need the helping hand from Allianz a foreign white knight short listed to come out with the S$2.2billions for a majority stake in Income.Some very huge loss might have hit Income’s operating bottom line thereafter causing such liquidity crisis.Is is now a common knowledge that CCP… Read more »
Whats “affordable” for these mil$ PAPs and their free loader hanger-ons, is never affordable for ordinary folk..
Their style= if cant convince then confuse.
The premiums will surely be raised for many …imo.
after the purchase, Allianz (51% share holder) will has the say and decision makings . what do you think?
my mom always tell me to be careful of people who tell lies without their eyes blnking. tsk tsk tsk
Hilarious! How about mean-testing household for insurance premium to make it ‘Affordable’? How did NTUC Income started with? To provide a community based aggregate protection against risks for its ‘Union Member’, under Insurance Co-operative Limited. After 50 years, what Income is doing now – Privatizing Co-op Assets and Socialize Commercial Liabilities. There be a day in the future like SMRT, that the gov or the peasants will be asked to save Income again. Oh, just a side note, a day will come where our MediShield Life will also be privatized and SOLD to private insurance providers to increase premium significantly… Read more »
Allianz paid $Billion? they already said they buy to make profits? what do you think? pineapples any comments? tsk tsk tsk
Another direlict floatsome & jetsom hanging on for dear life of plenty making stupid statements to sound relevant. There are nests of such shameless parasitic people hiding in GLCs milking the systems.
The only way to ensure is for this condition to be legally worded in the sale and purchase agreement, otherwise how else can you ensure when NTUC Enterprise is no longer 51% or more shareholder in future.
Btw which paper general is it this time to sell off the country’s crown jewel?
He is lying as once taken over, the new owners will be making the decision. He has no say and may be replaced himself.
“Bringing in a “global player with proven insurance and asset management capabilities” would help Income “compete more effectively”
Comment: this does not square with: “Pennefather argued that the deal does not make economic or strategic sense, citing Income’s strong financial performance compared to Allianz’s substantial losses in Singapore over the past three years”
Ultimately, despite strong objections and the rationale as encapsulated by Pennefather, the deal will go through. That is the way these elites do things – the mantra has always been ” we know what’s best”.
When even expensive public housing is said to be “Affordable” , I no longer am surprised by this cartoon
I’m sure he has own definition of “affordable“
US$1.6 billion. Wondering how much all those White elites and their families and kakis will pocket each? And when sold, how to guarantee affordable insurances?
He mentioned Income unable to compete. How come. The PAP has access and at its disposals on hand, on call any time plenty of talents available. Strong passport also.
Still water runs deeper than what Boon Heng speaks.
When the PAP abandon it’s Social Missions, will they swear to tell the truth.
And with so much talent which PAP claim so often, they are, no talents to run Income better.
SG post hired a German to run with his army of ex McKinsey Consultants. Get SgPost to teach lor.
You people still believe the words from this man who shed crocodile tears on stage during the past election??? LOL.
He’s telling us for sure the sun ll rise tmrw from the east – when even the Devil knows.