(Bloomberg) -- Allianz SE, Europe’s biggest insurer, is discussing a possible tie-up with Singapore-based Income Insurance Ltd. 

The German firm is in talks about a transaction relating to the shares of Income Insurance, the Singapore company said in a statement Friday, confirming an earlier Bloomberg News report. A deal would see Allianz buying a stake in closely held Income Insurance and could also involve a partnership agreement, people with knowledge of the matter said earlier. 

There’s no certainty that any transaction will materialize, Income Insurance said in the statement. A representative for Allianz declined to comment. Bloomberg News first reported last month that Income was exploring options to help it expand across the Asia Pacific region. 

Allianz Chief Executive Officer Oliver Baete has focused on smaller deals and stayed mostly clear of bigger acquisitions, allowing him to return billions of euros to investors through share buybacks and higher dividends in the past few years.

Income Insurance was founded in 1970 and has about 1.7 million customers in Singapore. It is designated one of the Southeast Asian country’s four systemically important insurers.

Allianz, which owns fixed-income manager Pimco, says it has about 125 million customers in almost 70 countries globally. Its shares have risen 21% in the past 12 months, for a market value of about $107 billion.

--With assistance from Jan-Henrik Förster and Stephan Kahl.

(Updates with confirmation from first paragraph.)

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