SEOUL: South Korea’s insurance merger and acquisition market is showing signs of life after years of stalled deals, as major financial groups seek to expand beyond their core businesses.
Lotte Non-Life Insurance, KDB Life Insurance and Yebyeol Non-Life Insurance are all up for sale, with key bidding processes set to reach crucial stages in July and August.
While the assets themselves are not new, buyer priorities have shifted.
Banks are looking to strengthen non-bank earnings, securities firms want insurance licences, and insurers are seeking acquisitions to defend their market positions.
Korea Investment Holdings has emerged as the most aggressive bidder, joining the final auction for Yebyeol Non-Life while also reviewing Lotte Non-Life and KDB Life.
The financial group has long sought to add an insurance business.
At its annual shareholders’ meeting in March, it said it was reviewing both life and non-life insurers and aiming to complete a deal this year.
Yebyeol appears to be the most immediate target.
The bridge insurer, established by the Korea Deposit Insurance Corp to absorb the assets and liabilities of failed MG Non-Life Insurance, has struggled to find a buyer after multiple failed auctions. — The Korea Herald/ANN
