Dear readers, by now, you may have read of the news where German-based insurer, Allianz is looking to acquire a major stake in Income Singapore (former name is NTUC Income) for at least a 51% share.
The announcement has sparked a lively discussion in town on whether is it appropriate for Income Singapore to be acquired or sold.
I have also weighed in on this development as per the posts below (in case you have not read them):
NTUC INCOME SINGAPORE INSURANCES: IT’S LIKE A SOCIAL COMPACT! % (sgstocksinvesting.com)
INCOME INSURANCE PARTNERSHIP WITH ALLIANZ: A WORRY % (sgstocksinvesting.com)
Today, the Government of Singapore Investment Corporation (GIC) announced its 2023/2024 annual report and in a response to a media enquiry about recent calls for GIC to invest in SGX-listed companies, GIC replied to the effect that if there are companies deemed by GIC as having good global businesses, GIC would be open to invest in these companies, regardless of their locality.
With the aforementioned GIC’s reply coming on the backdrop of the Allianz-Income Singapore potential deal, I was thinking why not let GIC invest in Income Singapore if the aim of Income Singapore is to have some form of acquisition or funding? GIC may be able to offer a much better deal than Allianz and with GIC’s strongly recognised brand name, such an investment by GIC into Income Singapore will send a strong vote of confidence to all policy owners of Income in this current development caused by potential acquisition by Allianz.
Definitely, there will be some who may think why should GIC who is not an insurance-based company like Allianz invest in Income Singapore or what is the rationale of such a theoretical move?
But isn’t this what many policyowners of Income Singapore may want to be assured of? That of their policies still be owned by Income Singapore, which still has a strong social brand name and standing till today, with its links to NTUC.
An investment by GIC may in turn provide a good and sustained support of funding for Income Singapore to roll out even more and better insurance and health policies to do even better good for policyowners and Singapore. And to GIC, from what I read, their investment goals are for the long-term and also encompasses ESG components.
Just my humble suggestion or should I say imagination? But I believe technically GIC’s investment in Income Singapore is possible and such a move will really elevate the branding of Income Singapore higher than many of its other competitors! And it will be Good news to Income policyowners to have their policies co-owned by a strong brand name in GIC!