Kyobo Lifeplanet Completes Subsidiary Acquisition... "Securing Momentum for Digital Enhancement"

The First Case of Insurance Companies Investing in Fintech Subsidiaries After the Amendment of the Enforcement Decree of the Insurance Business Act

[Asia Economy Reporter Ki Ha-young] Kyobo Lifeplanet Life Insurance announced on the 24th that it has completed the acquisition of a subsidiary of Fortress Innovation, a financial simulation solution company.

Kyobo Lifeplanet resolved the agenda to add a subsidiary of Fortress Innovation at its board meeting in September last year, and recently completed the acquisition after going through the financial authorities' reporting procedures. The investment amount was 1.98 billion KRW, acquiring a 60% stake in Fortress Innovation. Fortress Innovation was responsible for building Kyobo Lifeplanet's new accounting settlement system in preparation for the introduction of IFRS17 in 2018, and plans to collaborate in the future to advance IT systems and strengthen digital business.

Kyobo Lifeplanet expects that through the acquisition of Fortress Innovation's subsidiary, it will be able to secure digital experts and establish a foundation for promoting digital transformation. This acquisition is the first case since the government allowed insurance companies to invest in fintech subsidiaries through the revision of the Enforcement Decree of the Insurance Business Act.

Fortress Innovation, established in 2013, is an actuarial software development company. It operates software leasing, sales, and actuarial consulting, providing IFRS17 solutions, asset risk consulting, and large-scale financial simulation solutions based on GPU parallel technology to financial institutions and insurance companies.

Lee Hak-sang, CEO of Kyobo Lifeplanet, said, "We expect successful synergy through cooperation between the two companies with this acquisition of Fortress Innovation," adding, "Insurtech will become a new growth engine for the insurance industry in the future."

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