Deal is Allianz39;s biggest in Asia
Allianz to become Asia39;s fourth largest insurer, up from ninth
Income Insurance39;s top shareholder praises the deal

FRANKFURT, July 17 Reuters German insurer Allianz said on Wednesday that it was planning to buy a majority stake in Singapore39;s Income Insurance for about 1.6 billion to strengthen its foothold in Asia.

The offer by Allianz, one of Europe39;s most valuable financial firms in terms of its market capitalisation, for a stake of at least 51 is its largest acquisition in Asia and its biggest deal in three years.

It comes as the insurance sector in Singapore is experiencing consolidation and increased deal activity.

Allianz said it would offer 40.58 Singapore dollars per share for a transaction value of 2.2 billion Singapore dollars 1.64 billion.

Allianz said the move would make it Asia39;s fourthlargest insurer, up from ninth previously.

This majority stake is expected to elevate Allianz39;s presence in the fastgrowing and attractive Singapore insurance market, Allianz said.

Income Insurance said Allianz was committed to investing in Singapore and that its own position in the market gave the deal a strong and compelling rationale.

The target39;s top shareholder, NTUC Enterprise, which holds a nearly 73 stake, said it would remain a substantial shareholder and praised the deal.

The purchase is still subject to the approval of regulators.

Allianz has for years been making incremental pushes into Asia, with its…