KB Financial to merge Prudential Life, KB Life Insurance by 2023

The headquarters of KB Life Insurance, left, and Prudential Life Insurance of Korea in Seoul / Courtesy of KB Financial Group

By Anna J. Park

KB Financial Group's two life insurance subsidiaries, KB Life Insurance and Prudential Life Insurance of Korea, are set to be completely integrated into a single firm by early 2023, aiming to create differentiated services for customers.

After KB Financial acquired a 100-percent stake in Prudential Life Insurance for 2.3 trillion won ($1.8 billion) in August 2020, the newly acquired unit and KB Life had been operated independently for a time. The acquisition deal marked the top U.S. life insurer's exit from the Korean market after 30 years.

Yet, under the group's master plan of merging the two insurers by 2023, they have since 2021 been increasingly coming under joint management, ranging from their computer systems, to their accounting and human resources, as well as their administrative support.

The integrated firm's official company name is expected to be decided in the second half of this year.

The financial group expects the complete merger of the two insurers to bring about improved services in a diverse range of differentiated products and premium finance consulting services available for customers.

According to KB Financial Group, the newly integrated life insurance subsidiary will also raise the capital soundness as well as growth potential of the firm, as the merger will put it in a better position to achieve economies of scale.

“The financial group plans to complete the integration process smoothly, aiming to raise value for customers, shareholders and employees,” an official from KB Financial Group said.

“The group will do its best so that the two companies not only achieve a physical merger of workspaces and IT systems, but also accomplish the chemical integration of two different corporate cultures along with harmony among the employees.”

Under KB Financial's plan, the integrated life insurance company will provide comprehensive financial services throughout customers' entire lives. The company is also planning to build strengths in the realm of inheritance ― including family business succession ― and in the redesign of financial management for senior citizens.