Updates on Proposed Income-Allianz Transaction

• On 17 July 2024, Allianz made a Pre-Conditional Voluntary Cash General Offer (“Offer”) to acquire at least 51% of the shares in Income Insurance, subject to the fulfilment of a pre-condition (regulatory approval).
• The Offer was withdrawn by Allianz on 16 December 2024. Please refer to the Press Release dated 16 December 2024

• The Government decided the Offer should not proceed due to concerns about the terms and structure of the deal in its current form, particularly in ensuring that Income Insurance’s social mission would be upheld after the transaction.

• Income Insurance is not in a position to respond on behalf of Allianz on the reasons for its withdrawal of the Offer.

• The withdrawal of the Offer does not affect operations and it remains business as usual for Income Insurance.

• Shareholders can sell their shares at a price and on terms agreed between a willing buyer and willing seller.

• The withdrawal of the Offer has no impact on policyholders and Income Insurance will continue to honour the terms and conditions of existing policies.

• Income Insurance’s capital adequacy ratio currently remains well above the minimum regulatory requirement. Income Insurance maintains a strong capital adequacy post Covid including various levels of capital buffer to cater for severe stress scenarios. As a Domestic Systemically Important Insurer (DSII), Income Insurance is also subject to higher regulatory standards and supervision to protect the interest of its policyholders.

• The trading of Income Insurance shares on the Alta Exchange ceased on 17 October 2024. We are not aware of any resumption of the trading of Income Insurance shares on Alta Exchange.
• If you have appointed PSPL as your custodian, we understand that this relationship will continue unless you decide to terminate it. Please speak to PSPL about the custodianship of your Income Insurance shares and any liquidity programme for Income Insurance shares offered by PSPL accordingly.

• Income Insurance will consider exploring share liquidity options for shareholders to unlock the value of their shares. In the meantime, shareholders can continue to buy and sell their shares on a willing-buyer and willing-seller basis and transact at a price that the parties agree on.

The directors of Income Insurance (including those who may have delegated detailed supervision of this communication) have taken all reasonable care to ensure that the facts stated and all opinions expressed herein are fair and accurate and that no material facts have been omitted from this communication, the omission of which would make any statement in this communication misleading, and they jointly and severally accept responsibility accordingly.

Where any information has been extracted or reproduced from published or otherwise publicly available sources or obtained from the Offeror, the sole responsibility of the directors of Income Insurance has been to ensure, through reasonable enquiries, that such information is accurately extracted from such sources or, as the case may be, accurately reflected or reproduced herein. The directors of Income Insurance do not accept any responsibility for any information relating to the Offeror or any opinion expressed by the Offeror.

Information is correct as at 16 December 2024.