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

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

[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 shareholders' meeting on the 22nd and newly appointed Kim Ki-hwan, KB Financial Group’s Chief Financial Officer (CFO) and Vice President, as CEO and Chairman of the Board. He is the second KB Financial Group insider to lead KB Insurance since KB Financial acquired LIG Insurance and launched KB Insurance in 2015, following former CEO Yang Jong-hee.

Born in 1963, CEO Kim served as Head of Human Resources 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, human resources, and public relations.

Although his experience related to the insurance industry is limited, he is regarded as 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 first three quarters of this year was 186.6 billion KRW, down 20.2% from 233.9 billion KRW last year. Due to losses in overseas investments, investment operating profit decreased by 12.0%, 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 National Agricultural Cooperative Federation (NongHyup) and has worked extensively in management and planning at the Federation and NongHyup Bank, serving as Vice President of NongHyup Financial Group and Deputy CEO of NongHyup Bank.

Kim’s lack of insurance industry experience is also a challenge. NongHyup Life successfully returned to profitability 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.

Additionally, proactive measures must be taken in response to the new International Financial Reporting Standard (IFRS 17) to be introduced in 2023. NongHyup Life raised its solvency capital ratio (RBC) to over 200% through a 200 billion KRW capital increase in September. However, it faces challenges such as improving asset management returns, which are below the industry average, and establishing new businesses for mid- to long-term growth beyond protection-type insurance.

Sung Dae-gyu, President of Shinhan Life Insurance

Shinhan Life’s Sung Dae-gyu and KB Life’s Heo Jung-soo 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, scheduled to launch in July next year, is expected to accelerate the integration with Orange Life.

Based on his background as a bureaucrat and insurance expert, he successfully improved Shinhan Life’s structure. His key interest in digital transformation strategies is also expected to gain momentum. Shinhan Life recorded a cumulative net profit of 171.3 billion KRW through the third quarter, a 56.0% increase compared to the same period last year.

Heo Jung-soo, 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 recognized for 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 only 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.