Insurers struggling in stock market
By Kang Seung-woo Three local life insurers made their debut on the equity market under a big spotlight over the past year but they are struggling as their stock prices remain below the initial public offering (IPO) prices despite the recent market rally. Tongyang Life Insurance launched its IPO on Oct. 8 for the first time among local insurers but failed to enjoy the first mover premium. Its IPO price was 17,000 won per share, but since then, it has dropped about 30 percent to 11,900 won as of Tuesday’s close of the Korea Exchange (KRX). Korea Life Insurance and Samsung Life Insurance, which followed Tongyang, are also in the same situation. Korea Life initially listed at 8,200 won per share in March, but has remained below 8,000 won, sitting at 7,850 won. Samsung, which made its KRX debut to much fanfare in May with its offering valued at 110,000 won, has dropped to 105,500 won. Market analysts think that the low interest rate is the key culprit behind the insurers’ sluggish performance on the stock market. Insurers, which usually invest customers’ premium in i
