(Seoul=Yonhap Infomax) Soo Yong Lee = Hanwha Life Insurance Co., one of South Korea's leading insurers, announced on the 21st that it will acquire the remaining shares of its insurance general agency (GA) subsidiary, Hanwha Life Financial Services, bringing it back under full ownership.


According to the insurance industry, Hanwha Life will purchase the remaining 11.11% stake in Hanwha Life Financial Services on this day.


The company will acquire a 7.67% stake from Korea Investment Private Equity (PE) and a 3.44% stake in convertible preferred shares from Korea Investment Value Asset Management.


Previously, in September 2023, Korea Investment Holdings invested approximately 100 billion won ($76 million) in Hanwha Life Financial Services, securing convertible preferred shares.


At its launch in 2021, Hanwha Life Financial Services had total capital of 650 billion won ($495 million). Following the September 2023 investment, its corporate value rose to about 900 billion won ($685 million).


Since then, Hanwha Life Financial Services has experienced rapid growth, with its current corporate value reportedly estimated at around 1.7 trillion won ($1.29 billion).


With Hanwha Life converting Hanwha Life Financial Services into a wholly owned subsidiary, the company is expected to strengthen its sales capabilities through unified decision-making.


Given Hanwha Life Financial Services' strong profit generation and growth potential, the latest share acquisition is also expected to have a positive impact on Hanwha Life's overall growth.


Factoring in future dividends, the timing of the share purchase is seen as optimal, and considering the current corporate valuation, Hanwha Life anticipates economic gains from this transaction.


As of the third quarter of this year, Hanwha Life Financial Services posted a net profit of 80.1 billion won ($61 million).


sylee3@yna.co.kr

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