Hanwha Life secures controlling stake in Indonesia's Nobu Bank

Hanwha Life Insurance's headquarters in Seoul / Courtesy of Hanwha Life Insurance

Hanwha Life Insurance has made a strategic investment to secure a 40 percent stake in Nobu Bank from Indonesia's Lippo Group, becoming a key shareholder with management rights, the insurer said Monday.

The deal was finalized about a year after Hanwha Life signed a share purchase agreement with Lippo Group, the sixth-largest conglomerate in the Southeast Asian country, in May last year.

With this move, Hanwha Life became the first Korean insurer to pursue entry into the overseas banking sector.

As of 2024, Nobu Bank holds total assets of about 3 trillion won ($2.2 billion) and continues to show steady growth, with net profit more than doubling from 12 billion won in 2023 to 27.9 billion won in 2024.

With this investment, Hanwha's financial affiliates have further solidified their presence in Indonesia as a comprehensive global financial group, expanding their footprint across life insurance, nonlife insurance, securities, asset management and now banking.

Hanwha Life aims to leverage its digital finance capabilities in combination with Nobu Bank's local offline network to drive innovation in retail financial services, attracted by Indonesia's youthful demographic, with those aged 30 and under accounting for more than half of the population.

The company also plans to establish a stable profit base and mitigate risks through a locally optimized strategy in partnership with Lippo Group.

"By becoming the first Korean insurer to successfully enter Indonesia's banking industry, we have established a significant milestone in shaping the future of finance," said Kim Dong-wook, who oversees global strategy at Hanwha Life. "Moving forward, we will further strengthen our position as a global, integrated financial group by leveraging our digital finance expertise and global network."

Hanwha Life has been expanding its global financial ecosystem by implementing tailored strategies for each region, including Southeast Asia and the Americas, through establishing localized partnerships, obtaining full financial licenses and strengthening digital financial services.