Chairman Yoon Jong-kyu on Prudential Acquisition Concerns: "Insurance Is a Stable Business"

[Asia Economy Reporter Oh Hyung-gil] Yoon Jong-kyu, Chairman of KB Financial Group, addressed the labor union's concerns about the acquisition of Prudential Life, stating that "insurance is a sound business."

At the KB Financial Group shareholders' meeting held on the 20th at the KB Financial Group headquarters in Yeouido, Seoul, Kim Dae-sung, chairman of the KB Insurance labor union, pointed out, "Interest rates are currently falling, and Prudential Life is expected to face significant negative interest margins in the future. Why are you trying to acquire Prudential Life at this time?" In response, Chairman Yoon said, "When it rains, those who have umbrellas and proper equipment can enjoy the atmosphere of the rain."

Chairman Yoon explained, "Looking at life insurance companies in Europe and Japan that have experienced zero interest rates, their PBR (Price-to-Book Ratio) was overwhelmingly higher than banks until the end of last year. The more difficult the environment, the more opportunities excellent companies have," adding, "There is still demand for insurance, and I believe the business itself is sound."

When the labor union suggested that the acquisition might be an M&A move to inflate performance for a third term, Chairman Yoon responded, "A professional due diligence team conducted the due diligence," and stated, "There would be no reason to bid without accurately calculating whether it would be a burden to KB Financial."

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