Kyobo Life is moving forward with plans to acquire AXA General Insurance, aiming to enhance its portfolio in the non-life insurance sector.
According to financial industry sources on August 11, Kyobo Life is in the process of selecting an advisory firm for the acquisition. The company has sent out requests for proposals (RFPs) to global investment banks and accounting firms, and it is expected to begin due diligence once an advisor is chosen. Kyobo Life has confirmed its intention to pursue the acquisition of AXA General Insurance.
AXA General Insurance is primarily owned by the French AXA Group, which holds a 99.76% stake. The company specializes in auto insurance and reported a net profit of 4.5 billion won in the first quarter of this year. Its solvency ratio (K-ICS) stands at 175.6% under transitional measures.
AXA General Insurance was previously a subsidiary of Kyobo Life. Kyobo Life acquired Korea Automobile Insurance in 2001, operating it as Kyobo Automobile Insurance, before selling management rights to the AXA Group in 2007. The company considered reacquiring AXA General Insurance in 2020 and 2023, but those negotiations did not materialize.
If Kyobo Life successfully acquires AXA General Insurance, it will establish a comprehensive financial subsidiary system that includes life insurance, non-life insurance, securities, asset management, and savings banks. In March, Kyobo Life acquired a 50% plus one share stake in SBI Savings Bank for approximately 900 billion won, and last month, it fully integrated Kyobo AXA Asset Management as a subsidiary.
* This article has been translated by AI.
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