Heungkuk Fire & Marine Insurance Issues 40 Billion KRW Subordinated Bonds

Subordinated Bonds Issued for 40 Billion KRW, Exceeding RBC Ratio of 190%

[Asia Economy Reporter Oh Hyung-gil] Heungkuk Fire & Marine Insurance announced on the 22nd that it will issue 40 billion KRW of subordinated bonds.

The 40 billion KRW subordinated bonds issued in September 2014 are reaching maturity and will be repaid on the 29th, and the same amount of 40 billion KRW is scheduled to be reissued on the 30th.

Meritz Securities acted as the lead underwriter and conducted a demand forecast the previous day, raising 29 billion KRW. The remaining 11 billion KRW will be underwritten by Meritz Securities.

As of the end of June, Heungkuk Fire & Marine Insurance's Risk-Based Capital (RBC) ratio stands at 182.35%. Upon the issuance of 40 billion KRW subordinated bonds on the 30th, the RBC ratio is expected to rise close to 190%.

A Heungkuk Fire & Marine Insurance official stated, “There are no plans to issue additional new subordinated bonds for the time being, and it is expected that the stable RBC ratio will be maintained solely through the reissuance of maturing subordinated bonds.” He added, “As of March, if held-to-maturity securities worth 4.4574 trillion KRW are reclassified as available-for-sale securities, the RBC ratio could increase by about 61 percentage points to around 237%. However, currently, we are not considering account reclassification.”

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