Mirae Asset Life Insurance has reached an agreement to acquire 100% shares of PCA Life Korea for KRW 170 billion. PCA Life Korea is a subsidiary of Prudential plc - the UK-based financial services group, which said in its press release on November 10 that the announced deal is consistent with Prudential's strategy of allocating its capital to markets where it is well positioned to generate attractive long-term returns for its shareholders.

When the deal is completed, Mirae Asset Life Insurance will become the fifth largest life insurer in Korea in terms of asset size, as it will expand its assets to KRW 33 trillion from the acquisition of PCA Life Korea, whose assets are worth KRW 5.3 trillion.

Given PCA's large portfolio of variable life products, the acquisition may bring significant synergy effects to Mirae Asset Life, which has strength in the variable life insurance sector.

More M&As are expected in the insurance industry in Korea amid the growing need of capital expansion in the run-up to the adoption of IFRS17 in 2021. Among the companies being up for sale are KDB Life Insurance and ING Life.

Earlier in April 2016, China's Anbang Insurance, which had taken over Tong Yang Life last year, signed a stock transfer agreement with Germany's Allianz Group to acquire its subsidiary, Allianz Life Insurance Korea. The Chinese insurance group is now waiting for the greenlight to the transaction from Korea's financial regulatory authorities.

Korean Reinsurance Company published this content on 12 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 15 January 2017 01:25:02 UTC.

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