Korean Re accelerates global expansion

By Kim Bo-eun

Korean Re CEO Won Jong-gyu

The Korean Reinsurance Company (Korean Re) is speeding up its overseas expansion, most recently by setting up a branch in Shanghai.

The reinsurer said Wednesday it completed setting up the Shanghai branch, its second outlet in China after opening an office in Beijing in 1997.

China's insurance market is the largest in Asia and the second-largest globally, with vast growth potential. Premium income in China grew 3.92 percent to 660 trillion won ($570 billion) in 2018 ― 11.6 percent of global premium income.

Korean Re's Shanghai branch is set to serve as its sales base in China. The Beijing office had been in charge of market research.

"The branch in Shanghai will become an important foothold to consolidate Korean Re's sales base in the Chines market," Korean Re CEO Won Jong-gyu said.

Korean Re has 11 overseas outlets in nine countries.

An office in Singapore was the first to be opened in 1975. Since Won took office in 2013, Korean Re has accelerated expansion efforts, opening a subsidiary in London in 2015, branches in Labuan, Malaysia in 2017 and Dubai in 2018.

Last June, Korean Re opened a subsidiary in Zurich.

Its insurance premium from overseas businesses grew to 1.86 trillion won in 2018, up from 1.64 trillion in 2017 and 1.45 trillion in 2016. Based on the growth of its overseas business, Korean Re is actively seeking to expand further.

It is looking to open an office in Bogota, Columbia within the first half of the year and expand sales efforts in Central and South America in the latter half.

“Contracts with foreign businesses are signed at the head office in Seoul, as well as other overseas outlets, but we are expanding our physical presence abroad to boost sales efforts,” a Korean Re official said.

“This is because the local market is stagnant because of the high insurance penetration rate.”

Korean Re is the world's 10th-largest reinsurance company in terms of gross written premiums.