Woori Financial Group to launch mega life insurer through Tongyang, ABL merger
Summary
Woori Financial Group said Tuesday it will begin integrating Tongyang Life Insurance and ABL Life Insurance to launch a combined life insurer with about 55 trillion won in assets in the second half of 2027. The group said the move is meant to strengthen its insurance business and respond to a rapidly changing market. Woori also plans to invest in artificial intelligence, improve products and distribution, and pursue senior care growth opportunities.
Key Facts
- Woori Financial brought Tongyang Life and ABL Life under its wing in July and made Tongyang a wholly owned subsidiary through a comprehensive share swap on Aug. 11.
- The integrated life insurer is expected to have total assets of about 55 trillion won, or $39 billion, when it launches in the second half of 2027.
- Woori plans to focus on capital soundness and contract service margin, which it described as a key measure of future insurance profitability.
- Woori Financial Chairman Yim Jong-yong will hold a town hall meeting on Wednesday with executives and team leaders from both insurers to explain the integration plans.
- Since taking office in 2023, Yim has pushed diversification through the launch of Woori Investment & Securities and the acquisitions of Tongyang Life and ABL Life.
Woori Financial Group's headquarter in Seoul / Courtesy of Woori Financial Group
Woori Financial Group said Tuesday it will officially kick off the integration of Tongyang Life Insurance and ABL Life Insurance, aiming to launch an integrated life insurer with total assets of about 55 trillion won ($39 billion) in the second half of 2027.
The group said the integration is part of efforts to strengthen its insurance business as one of its key pillars and launch a larger insurer amid a rapidly changing insurance market.
Woori Financial brought both Tongyang and ABL under its wing in July and made Tongyang a wholly owned subsidiary through a comprehensive share swap on Aug. 11.
The group plans to combine the two insurers' strengths while focusing on capital soundness and contract service margin, a key measure of the future profitability of insurance contracts, the company said.
It also plans to invest in artifical intelligence to streamline sales and management operations, while drawing on the strengths of both insurers to enhance its products and distribution channels.
Following the merger, it will explore new growth opportunities in areas such as senior care amid Korea's rapidly aging population.
"The insurance industry is at a major turning point due to demographic changes, including a rapidly aging population, as well as tighter capital regulations and more stringent actuarial assumptions," a Woori Financial official said.
"We expect this integration to serve as an opportunity for Woori Financial Group to significantly strengthen its insurance business and achieve more balanced growth across the group’s business portfolio," the official added.
Woori Financial Chairman Yim Jong-yong will convene a town hall meeting on Wednesday with executives and team leaders from both insurers to share the group's vision and plans for the integration.
Since taking office in 2023, Yim has pursued diversification of business portfolio with the launch of Woori Investment & Securities and the acquisitions of Tongyang Life and ABL Life, as part of efforts to expand the group's nonbanking businesses.
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