The Korea Development Bank (KDB) is mulling over incorporating KDB Life as a subsidiary instead of pursuing another futile attempt to sell the insurer, industry sources said.
While major insurance firms are queued up for sale, financial holding companies are exercising caution in proceeding with acquisition deals. This contrasts with earlier market expectations that they would actively pursue acquisitions to expand their non-banking business portfolios.
Aiming to expand their non-banking business portfolios, major financial firms, including local financial groups, are closely examining whether to add new insurance subsidiaries, as two insurers - KDB Life Insurance and ABL Life - are currently looking for new owners. Lotte Insurance and Tongyang Life Insurance are also deemed as candidates that are likely to be put up for sale within the next several months, attracting the interest of potential buyers.
Hana Financial Group has entered the fray to acquire KDB Life, the insurance arm of the Korean Development Bank (KDB). This move is viewed as an attempt to enhance its competitiveness in the insurance market, particularly as its rivals, KB Financial Group and Shinhan Financial Group, seek to strengthen their non-banking arms through separate acquisitions.
In less than a week since Heungkuk Life Insurance decided to delay the exercise of a $500 million call option on its dollar-denominated perpetual bonds, sending a shockwave to Korean companies dollar bonds market, the life insurer reversed its position in a move to calm and rectify souring investment sentiment in Korean companies bonds markets.