Allianz mulls corporate insurance in Korea

By Nam Hyun-woo

Global insurer Allianz SE is seeking another business in Korea by opening a branch specializing in corporate insurance, according to industry sources and the financial authority.

According to an official at the Financial Services Commission (FSC), Allianz group had applied for regulatory approval to gain a property insurer’s license in Korea earlier this month. The FSC is currently reviewing their application and the insurer is expected to be granted a license as early as next year.

A source close to the matter said that Allianz Global Corporate & Specialty (AGCS), a corporate insurance subsidiary of the group, is seeking an entrance into Korea. The source said the company has been tapping into financial authorities here since last year, as well as appointing lawyers to take care of its legal matters.

Unlike the group’s previous Korea moves of setting up separate corporate bodies, the company will likely open a branch office here and focus on business-to-business operations, such as marine, aviation and corporate business insurance.

Established in 2006, the Munich-based company is a business insurance firm providing alternative risk transfer, aviation, marine, energy, property and other risk consulting services.

About the matter, AGCS was unavailable for comment immediately.

In June 2002, Allianz group set up Allianz General Insurance Korea to engage in non-life insurance business here, but withdrew just one year later, saying it would focus on life insurance.

The move is in stark contrast to foreign financial firms that are leaving Korea. Earlier this year, the group sold Allianz Life Korea to China’s Anbang Insurance Group. Last year, Royal Bank of Scotland (RBS) withdrew its corporate banking business from Korea. Following it was Barclays, which closed its Seoul offices in January, and Goldman Sachs, which gave up its license in the banking sector.