Allianz withdraws $1.63 billion offer for Singapore's Income Insurance

SINGAPORE (Reuters) - Allianz has withdrawn its offer to acquire at least 51% of Singapore's Income Insurance for about $1.63 billion, the German company said in a statement on Monday.

Reuters reported on Dec. 13 that the German insurer has scrapped the proposed acquisition.

Allianz said in Monday's statement that the decision came in light of the Singapore government's announcement during a parliament sitting on Oct. 14 and subsequent changes to the country's Insurance Act.

The acquisition would have lifted Allianz to fourth largest composite insurer in Asia, from ninth, but sparked criticism in Singapore because of concerns that it would detract from a mission to provide affordable insurance for lower-income workers.

Singapore Prime Minister Lawrence Wong said in October that the city-state would block Allianz's bid, but remained open to a new deal if its concerns could be addressed, which Allianz said at the time it would attempt to do.

The government subsequently amended the insurance law giving it more power to scrutinise buyouts of cooperative-linked insurers.

(Reporting by Yantoultra Ngui; Editing by Edmund Klamann and Muralikumar Anantharaman)