Kyobo Life Insurance "ESG Matching Investment Completed in 3 Months"

[Asia Economy Reporter Changhwan Lee] Kyobo Life Insurance announced on the 21st that it completed ESG matching investments for the ‘ESG-certified hybrid capital securities (sustainability bonds)’ issued in September last year in just over three months.

ESG bonds refer to bonds issued for the purpose of socially responsible investments, such as improving environmental, social, and governance factors. The company explained that the period, initially expected to take about a year, was significantly shortened, achieving early success in asset management matching.

Earlier, Kyobo Life Insurance issued hybrid capital securities worth 470 billion KRW in the form of ESG bonds to proactively prepare for capital regulations such as the new solvency regime (K-ICS). This was the first case among domestic life insurance companies.

By December last year, Kyobo Life Insurance executed ESG investments amounting to 509.1 billion KRW, equivalent to 108% of the hybrid capital securities issuance funds. All investments were made in green/social business sectors certified for ESG by Korea Ratings.

The company emphasized that this is considered a model investment case not only in terms of investment scale but also profitability. Utilizing excellent asset management capabilities, they succeeded in investing at a management rate of 4.10%, significantly higher than the hybrid capital securities procurement interest rate of 3.72%.

A Kyobo Life Insurance official stated, “By successfully completing ESG matching investments for hybrid capital securities early, we have taken the lead in ESG management and secured long-term stable investment returns. This is highly meaningful as it has created an investment environment that develops together with all stakeholders while ensuring financial soundness.”

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