The-K Non-Life Insurance Becomes Hana Financial Group's 14th Subsidiary

M&A After 8 Years Since Acquiring Woori Bank in 2012
Only Regulatory Approval for Subsidiary Inclusion and Payment of Purchase Price Remain

[Asia Economy Reporter Kim Min-young] Hana Financial Group has acquired The-K Non-Life Insurance from the Teachers' Credit Union.

Hana Financial announced on the 14th that it signed a stock acquisition agreement for The-K Non-Life Insurance with the Teachers' Credit Union.

Earlier, on the 20th of last month, Hana Financial held a board meeting and resolved to acquire The-K Non-Life Insurance and incorporate it as a subsidiary.

Hana Financial's acquisition of The-K Non-Life Insurance marks its first merger and acquisition (M&A) in eight years since acquiring Korea Exchange Bank in 2012. Once the financial authorities approve the subsidiary incorporation and the payment of the purchase price is completed, it will become Hana Financial Group's 14th subsidiary.

The acquisition target stake is 70%, with a purchase price of approximately 77 billion KRW. As of the end of September last year, this corresponds to a price-to-book ratio (PBR) of about 0.75 based on a net asset value of 146.9 billion KRW. Hana Financial stated, "Since being selected as the preferred bidder for The-K Non-Life Insurance acquisition in December last year, we have been continuously negotiating detailed terms such as price conditions and shareholding ratios for the stock acquisition."

Even after the share sale, the Teachers' Credit Union will remain a major shareholder holding 30% of the company's shares.

Performance improvement in the non-banking sector is expected going forward. Hana Financial has set a strategic goal to expand the group's non-banking sector profit ratio to 30% by 2025.

Hana Financial said, "With the successful acquisition of The-K Non-Life Insurance, we have taken a step closer to becoming a comprehensive financial group that has established all business lines through entry into the non-life insurance industry."

Kim Jung-tae, Chairman of Hana Financial, said, "Through an innovative digital non-life insurance model, we will discover new businesses and build a digital financial ecosystem where many customers can easily access insurance products."

The-K Non-Life Insurance was established in 2003 with 100% investment from the Teachers' Credit Union. It started as a specialized auto insurance company for teachers and was promoted to a comprehensive non-life insurance company in 2014.

As of September last year, with assets of 895.3 billion KRW and net assets of 146.9 billion KRW, half of its customers are high-quality teachers, providing a stable profit base.

Chairman Kim has a positive outlook on the future non-life insurance market. He said, "Due to social changes such as population aging and an increase in single-person households, along with a shift to an advanced market structure, the non-life insurance market will continue to grow. The rapid changes in values and technology will blur the boundaries of finance, and customer needs for daily life coverage such as travel, delivery, and distribution will also increase."

This content was produced with the assistance of AI translation services.