The move follows changes to the Insurance Act announced last 14 October.

Allianz, through its subsidiary Allianz Europe B.V., has withdrawn its offer to acquire at least 51% of Income Insurance.

The withdrawal follows changes to the Insurance Act announced by the Singapore Government on 14 October.

Allianz originally announced its pre-conditional voluntary cash general offer on 17 July.

"Allianz remains convinced it is the right partner to support Income Insurance's continued growth and its strategic mission for the benefit of Singapore's people, but the decision to withdraw its offer at this time underscores Allianz's financial discipline," it said in a statement.

"We respect the Singapore Government's decision," Renate Wagner, Member of the Board of Management of Allianz SE and responsible for the Asia-Pacific region, also said in the release.

"We still believe the combination of Allianz and Income Insurance would result in two strong businesses being brought together for the benefit of Income Insurance's policyholders and a growing portion of Singapore's customers," Wagner said.

Whilst Allianz maintains its belief that the acquisition would have benefited Income Insurance's policyholders and Singaporean customers, the decision to withdraw reflects the company's financial discipline.

"We regret having to make this decision but we will, without question, carry on supporting the Singapore insurance market's continued growth and success," added Wagner.