Lotte Insurance Issues 50 Billion KRW of New Hybrid Capital Securities to Address Capital Volatility

[Asia Economy Reporter Oh Hyung-gil] Lotte Insurance announced on the 8th that it is undertaking a capital increase by issuing new hybrid capital securities worth 50 billion KRW.

Lotte Insurance will raise a total of 50 billion KRW in new capital by issuing 40 billion KRW through a public offering and 10 billion KRW through a private placement of hybrid capital securities. The interest rate on the hybrid capital securities is 6.8%, with maturity until December 2051.

As a result of this capital increase, Lotte Insurance's solvency capital ratio (RBC) is expected to rise to 211.6%. This is an improvement of 77.7 percentage points compared to 133.9% in the third quarter of 2019 before the change of major shareholders.

Lotte Insurance is restructuring its insurance portfolio focusing on long-term protection insurance with excellent new contract value and is conducting mid- to long-term rebalancing for stable asset management.

A Lotte Insurance official explained, "The funds raised through the capital increase will be used to respond to capital volatility and serve as a growth engine after the introduction of new regulations," adding, "We plan to proactively prepare for various risks such as changes in the financial environment and continuously secure business competitiveness."

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