Mirae Asset Life to Buy Back 5 Million Shares "Enhancing Shareholder Value"

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Mirae Asset Life Insurance announced that it will repurchase 5 million shares of its own stock on the market from March 31 to April 29.

Mirae Asset Life Insurance explained that following the repurchase of 1.7 million shares in 2015 and 5 million shares in 2018, it will again engage in share repurchase this year in accordance with its shareholder return policy.

Mirae Asset Life Insurance has expanded sales through a 'Two-Track' strategy focusing on protection insurance and variable insurance. Based on its competitiveness in variable insurance, it currently holds the highest proportion of special account assets in the industry.

According to the Life Insurance Association, as of October last year, Mirae Asset Life Insurance ranked first with 40% in the ratio of special account assets to total assets among insurers with total assets exceeding 30 trillion won.

Special accounts allow for additional earnings through flexible asset management along with stable fee income if performance and management capabilities are supported. As special account assets increase, they offset the negative spread risk in the ultra-low interest rate era and reduce the burden interest rate ahead of the introduction of the new International Financial Reporting Standard (IFRS 17), which marks liabilities at market value.

Kim Eun-seop, CEO of the Management Services Division at Mirae Asset Life Insurance, stated, "The share repurchase reflects Mirae Asset Life Insurance's commitment to simultaneously pursue customer trust, company value enhancement, and shareholder interests. We expect that a sound business structure centered on value management will lead to differentiated performance, which in turn will establish a virtuous cycle through shareholder-friendly policies resulting in stock price appreciation."

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