Heads of Financial Holding Group-Affiliated Insurance Companies Receiving High Expectations

Financial Group Focuses on Strengthening Non-Bank Competitiveness
Insurance Company CEO Gains Strong Trust

Kim Ki-hwan, CEO of KB Insurance

[Asia Economy Reporter Oh Hyung-gil] As the year-end approaches, the appointment process for CEOs of financial holding company-affiliated insurance firms has been completed. Looking at the newly appointed or reappointed CEOs, a common evaluation is that they have gained solid trust within their financial groups. Since financial groups have recently been focusing on strengthening competitiveness in non-banking sectors, their roles are expected to become even more important.

According to the insurance industry on the 23rd, KB Insurance held an extraordinary general meeting of shareholders on the 22nd and newly appointed Kim Ki-hwan, Vice President and CFO of KB Financial Group, as CEO and Chairman of the Board. He is the second KB Financial Group insider to lead KB Insurance since the group acquired LIG Insurance and launched KB Insurance in 2015, following former CEO Yang Jong-hee.

Born in 1963, CEO Kim served as Head of HR and Executive Director of the Consumer Protection Group at KB Kookmin Bank, Executive Director in charge of Public Relations at KB Financial Group, and Executive Director overseeing Risk Management at both KB Kookmin Bank and the holding company. Within the group, he is recognized for his management capabilities through experience in key positions such as finance, risk, HR, and public relations.

Although his experience related to the insurance industry is limited, he is considered the right person to lead KB Insurance’s "second leap" in this regard. KB Insurance has established itself as a core affiliate within the group by generating annual net profits in the 200 billion KRW range. However, recent performance declines have made improvement efforts an urgent task.

KB Insurance’s cumulative net profit for the third quarter this year was 186.6 billion KRW, down 20.2% from 233.9 billion KRW last year. Investment operating profit decreased by 12.0% due to losses in overseas investments, and the loss ratio rose by 0.5 percentage points to 85.1% compared to 84.6% the previous year. It is necessary to stabilize loss ratios in general insurance and automobile insurance and improve profitability through new businesses such as digital initiatives.

Kim Ki-hwan, CEO of KB Insurance, Recognized for Financial and Management Capabilities
Kim In-tae, CEO of NongHyup Life, Faces Task of Establishing Stable Growth Foundation

Kim In-tae, newly appointed CEO of NongHyup Life from Vice President of NongHyup Financial Group, also faces the challenge of establishing a stable growth foundation. Born in 1962, Kim joined the NongHyup Central Association and has worked extensively in management and planning at the Central Association and NongHyup Bank, serving as Vice President of NongHyup Financial Group and Deputy CEO of NongHyup Bank.

Kim’s lack of experience in the insurance industry is also a challenge. NongHyup Life succeeded in turning a profit last year and continued strong performance with a net profit of 72.3 billion KRW through the third quarter this year, a 160.3% increase compared to the same period last year. However, it faces tasks such as improving asset management returns, which lag behind the industry average, and preparing new businesses for mid- to long-term growth beyond protection insurance.

Sung Dae-gyu, President of Shinhan Life Insurance

Sung Dae-gyu of Shinhan Life and Heo Jeong-su of KB Life Reappointed
Synergy Management Tasks Ahead of Affiliate Integration

On the other hand, insurance companies preparing for affiliate integration within financial groups have chosen stability over change by reappointing their CEOs.

Sung Dae-gyu, CEO of Shinhan Life and the inaugural CEO of Shinhan Life to be launched in July next year, is expected to accelerate the integration process with Orange Life. As a former bureaucrat and insurance expert, he successfully improved Shinhan Life’s structure. His key interest in digital transformation strategies is also expected to gain momentum.

Heo Jeong-su, CEO of KB Life, who was reappointed breaking KB Financial Group’s ‘2+1’ personnel principle, is also expected to resolve integration tasks with Prudential Life. Born in 1960, Heo is credited with completing the affiliate incorporation and integration of LIG Insurance (KB Insurance) and Hyundai Securities (KB Securities) during his tenure as CFO of KB Financial Group. However, KB Life’s cumulative net profit for the third quarter was 9.2 billion KRW, down 49.5% from the same period last year, making performance improvement urgent.

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