SINGAPORE, Dec 14 — Allianz SE has scrapped a proposed €1.5 billion (RM7 billion) acquisition of a 51 per cent stake in Singaporean firm Income Insurance Ltd because of public opposition to the deal, a source familiar with the matter said.

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

The decision will likely be announced publicly in the coming week, the source said, declining to be named. Allianz declined to comment.

Bloomberg reported earlier yesterday that the German insurer was close to scrapping the deal.

Income Insurance Ltd, which has around 1.7 million customers and offers life, health, and property insurance, was founded in the 1970s to offer insurance to poorer parts of the population.

Singapore’s prime minister 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. — Reuters