{"id":1877,"date":"2024-08-28T10:13:28","date_gmt":"2024-08-28T02:13:28","guid":{"rendered":"https:\/\/insurance.vincent-chen.com\/en\/?p=1877"},"modified":"2024-10-06T10:15:56","modified_gmt":"2024-10-06T02:15:56","slug":"woori-signs-1-16-bn-deal-to-acquire-tongyang-abl-life-from-chinas-dajia","status":"publish","type":"post","link":"https:\/\/insurance.vincent-chen.com\/en\/woori-signs-1-16-bn-deal-to-acquire-tongyang-abl-life-from-chinas-dajia\/","title":{"rendered":"Woori signs $1.16 bn deal to acquire Tongyang, ABL Life from China\u2019s Dajia"},"content":{"rendered":"

The acquisition is expected to bolster Woori\u2019s non-banking sector via synergy with Woori Investment & Securities<\/strong><\/p>\n

By Jun-Ho Cha | The Korea Economic Daily | August 28, 2024<\/p>\n

Woori Financial Group Inc., South Korea\u2019s fourth-largest financial services provider, said on Wednesday it has signed a deal to acquire Tongyang Life Insurance Co. and ABL Life Insurance Co. from China\u2019s Dajia Insurance Group Co. for 1.55 trillion won ($1.16 billion) to bolster its non-banking business.<\/p>\n

Earlier in the day, Woori approved the package deal at its board meeting and signed the final share purchase and sale agreement with Dajia, the revamped entity of China\u2019s embattled Anbang Insurance Group.<\/p>\n

With the share sale, Dajia plans to pull out of the Korean insurance market by the end of the year.<\/p>\n

Woori will pay Dajia 1.28 trillion won for a 75.34% stake in Tongyang Life and 265.4 billion won for a 100% stake in ABL Life.<\/p>\n

Tongyang ranks sixth among 22 domestic life insurers in terms of insurance premiums, following Samsung Life Insurance Co., Kyobo Life Insurance Co., Hanwha Life Insurance Co., Shinhan Life Insurance Co. and NH NongHyup Life Insurance Co.<\/p>\n

With 33 trillion won in assets, Tongyang posted 200 billion won in net profit last year.<\/p>\n

ABL Life, which ranks ninth, posted 80 billion won in 2023 net profit, with 17 trillion won in assets.<\/p>\n

Tongyang and ABL\u2019s price-to-book ratios (PBR) were 0.65 and 0.30, respectively, at the end of March.<\/p>\n

STRENGTHENING NON-BANKING SECTOR<\/strong><\/p>\n

Woori started deal talks with Dajia in May, signed a memorandum of understanding on the share purchases in June and has since engaged in on-site due diligence.<\/p>\n

Once Tongyang and ABL become part of the financial holding firm, Woori is expected to strengthen its non-banking business by seeking synergy with Woori Investment & Securities Co., which launched on Aug. 1.<\/p>\n

The brokerage unit launched after merging the online fund sales platform Korea Foss Securities Co. which Woori acquired in May, with Woori Investment Bank, the country\u2019s last merchant bank to deal mainly in commercial loans and real estate project financing.<\/p>\n

Woori Financial Group Chief Executive and Chairman Yim Jong-yong, who took the helm of the financial conglomerate in March 2023, has strived to improve shareholder returns by bolstering the group\u2019s non-banking portfolio.<\/p>\n

About 90% of Woori Financial Group\u2019s profits come from its banking services business.<\/p>\n

FINAL HURDLE<\/strong><\/p>\n

With the acquisition of Tongyang and ABL, the size of Woori Financial Group\u2019s fund management is also expected to grow by seeking synergy with Woori Asset Management Co.<\/p>\n

Tongyang Life Insurance had 30.94 trillion won in assets under management at the end of March.<\/p>\n

Woori\u2019s acquisition of Tongyang and ABL requires regulatory approval by the Financial Supervisory Service (FSS).<\/p>\n

Industry officials said they expect Woori to come under tighter scrutiny following recent illegal loans involving relatives of former Woori Financial Chairman Sohn Tae-seung.<\/p>\n

Earlier this month, the FSS, Korea\u2019s financial watchdog agency, found that Woori affiliates had improperly lent 35 billion won ($25.6 million) to former Chairman Sohn\u2019s relatives. The case is under investigation.<\/p>\n","protected":false},"excerpt":{"rendered":"

The acquisition is expected to bolster Woori\u2019s non-banking sector via synergy with Woori Investment & Securities By Jun-Ho Cha | The Korea Economic Daily | August 28, 2024 Woori Financial Group Inc., South Korea\u2019s fourth-largest financial services provider, said on Wednesday it has signed a deal to acquire Tongyang Life Insurance Co. and ABL Life… Read More »Woori signs $1.16 bn deal to acquire Tongyang, ABL Life from China\u2019s Dajia<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":70,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9,3],"tags":[],"class_list":["post-1877","post","type-post","status-publish","format-standard","hentry","category-korea","category-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/posts\/1877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/comments?post=1877"}],"version-history":[{"count":1,"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/posts\/1877\/revisions"}],"predecessor-version":[{"id":1878,"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/posts\/1877\/revisions\/1878"}],"wp:attachment":[{"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/media?parent=1877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/categories?post=1877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurance.vincent-chen.com\/en\/wp-json\/wp\/v2\/tags?post=1877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}