German insurer Allianz has withdrawn its offer to acquire at least 51% of Singapore's Income Insurance for about $1.63 billion, the company said in a statement on Monday. Reuters reported on Dec. 13 that the insurer had scrapped the proposed acquisition.

Allianz SE withdrew an offer to buy a majority stake in Singapore insurer Income Insurance Ltd. for about S$2.2 billion ($1.7 billion), following public backlash to the deal.

Allianz said Monday that it is withdrawing a preconditional offer made in July for a 51% stake in the insurer, adding that it respects a decision by the Singapore government against the transaction.

The decision comes after public outcry and government scrutiny over the importance of balancing commercial interests with social responsibility.

German insurance giant Allianz has withdrawn a $1.6 billion takeover offer for Singapore's Income Insurance following resistance from the South-East Asian country's government, the Munich-based company said on Monday.