Singapore's government has blocked Munich-based Allianz SE's proposed SGD2.2bn (USD1.7bn) deal to acquire a majority stake in Income Insurance, citing social concerns. The acquisition would have elevated Allianz from the ninth to the fourth largest composite insurer in Asia. Authorities stated that the transaction is not in the public interest in its current form, pointing to a substantial capital reduction following the deal and doubts about Income's ability to continue its social mission. Founded in 1970 as a co-operative serving Singaporean workers, Income Insurance is one of Singapore's four systemically important insurers, serving 1.7 million customers. The government plans to amend the Insurance Act to address such concerns in future transactions.