Korean Insurance Acquisitions Gather Pace as Buyers Compete for Assets

Korean insurance acquisitions are accelerating as banks, insurers and securities firms compete for strategic assets to strengthen earnings and diversify their financial services businesses.

Several major sale processes involving Lotte Non-Life Insurance, KDB Life Insurance and Yebyeol Non-Life Insurance are expected to reach important milestones during July and August.

Banks are seeking to expand non-bank revenue streams, while securities firms are pursuing insurance licences and insurers aim to defend or expand market share.

Yebyeol has attracted bids from Korea Investment, Heungkuk Fire & Marine Insurance, OK Financial Group and JC Flowers, with the Korea Deposit Insurance Corporation expected to select a preferred bidder this month.

Lotte Non-Life has reportedly drawn interest from Korea Investment and Shinhan Financial Group after JKL Partners reduced its asking price.

Meanwhile, Samsung Life, Korea Investment, Kyobo Life, Hanwha Life and Heungkuk Life have entered preliminary bidding for KDB Life ahead of an auction scheduled for August.