Insurance Firms Up for Sale
The financial authorities are failing to sell MG Non-Life Insurance and KDB Life Insurance.
The Korea Deposit Insurance Corp. is planning to choose a company to be in charge of selling MG Non-Life Insurance after Oct. 21 and then announce the bid within this year.
MG Non-Life Insurance has been under the control of the corporation and the Financial Supervisory Service since April. At that time, the insurance company’s liabilities exceeded its assets by 113.9 billion won and it failed to keep its promise to increase its capital by 150 billion won. As a result, it was designated as an insolvent insurer.
The Korea Development Bank recently chose a company to be in charge of selling KDB Life Insurance, which was previously Kumho Life Insurance. The bid announcement is scheduled for late this month, which will be its fifth attempt. The bank acquired the insurer in 2010 in order to assist insolvent Kumho Group and it currently owns 92.73 percent of the insurer.
Few are showing interest, although the corporation and the bank are trying to sell the insurers as soon as possible. “MG’s problem is that its liabilities are huge,” said an industry source, adding, “KDB Life Insurance’s financial conditions are better but it is not that attractive as the life insurance market itself is slowing down due to low fertility and population aging.”