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Insurers emerge as key players in global financial value chain
New York City skyline showing the Manhattan financial district and World Trade Center / gettyimagesbank
By Jun Ji-hye
Hanwha Life completes acquisition of 75% stake in US broker Velocity
The insurance sector, once considered conservative and slow-moving, is now gaining attention as a key driver in reshaping global financial dynamics and advancing a sustainable financial ecosystem that goes beyond traditional risk coverage, industry officials said Thursday.
Leading global financial institutions are recognizing the stability of insurers' assets and are increasingly incorporating them into fund management and alternative investment strategies.
The insurance industry is known for its long-term, predictable contracts and strong credibility, positioning itself as a compelling option for global financial players seeking stability.
Korean insurers are likewise strengthening their role in this evolving landscape.
Hanwha Life Insurance's headquarters in Seoul / Courtesy of Hanwha Life Insurance
In particular, Hanwha Life Insurance is accelerating its global push to diversify income sources and boost asset management capabilities, responding proactively to the challenges of a low-growth domestic market shaped by demographic shifts and regulatory changes.
On Wednesday (local time), Hanwha Life finalized its acquisition of a 75 percent stake in U.S. brokerage firm Velocity Clearing, signaling the company's intent to expand beyond its traditional insurance portfolio and into the North American capital markets.
The deal marks the first instance of a Korean insurance company entering the U.S. securities market, the core of the global financial system.
With this acquisition, Hanwha Life now has a foundation to enhance profitability through local financial institutions and offer premium global financial products to clients worldwide.
Headquartered in New York, Velocity reported total assets of around $1.2 billion as of the end of 2024 and has demonstrated robust growth, achieving a 25 percent compound annual growth rate in revenue from 2022 to 2024. Its net profit has also steadily increased, with further profitability growth anticipated post-acquisition.
The Korean insurer aims to work closely with Velocity's current management team to quickly stabilize operations, while also partnering with Hanwha Asset Management's U.S. branch and Hanwha AI Center to enhance synergies by integrating finance and technology.
"Gaining a foothold in the central hub of global finance provides a meaningful opportunity for us to showcase our strengths as a Korean financial firm," a Hanwha Life official said. "We will focus on bolstering our business capabilities through digital financial technology and an extensive global network, while fostering stronger regional connections to maintain steady growth."
On June 30, Hanwha Life acquired a 40 percent stake in Nobu Bank from Indonesia's Lippo Group, securing a significant ownership position, along with management rights.
Lippo Group ranks as the sixth-largest conglomerate in Southeast Asia. Hanwha Life is the first Korean insurer to expand into the international banking sector.
As of 2024, Nobu Bank reported total assets of approximately 3 trillion won ($2.2 billion) and demonstrated consistent growth, with net profits rising sharply from 12 billion won in 2023 to 27.9 billion won in 2024.