Hanwha Life "Will Exercise Call Option on New Hybrid Capital Securities as Scheduled"

[Asia Economy Reporter Changhwan Lee] Hanwha Life announced on the 16th that it will exercise the call option (early redemption right) for the $1 billion overseas hybrid capital securities scheduled for April next year as planned.

Hanwha Life explained that it plans to redeem the hybrid capital securities early by liquidating foreign currency assets before April next year and that there is no need for additional fund raising.

The company had disclosed plans to issue $750 million of overseas hybrid capital securities in September. However, it emphasized that there was no need to raise capital at a high interest rate and that it did not issue the securities considering market conditions.

A company official said, "We are currently managing assets conservatively assuming early redemption without refinancing next year," and added, "Sufficient liquidity is expected to be secured by the redemption date next year."

Regarding concerns about a liquidity crisis due to rising interest rates, the official said there is no situation to be worried about. As of the third quarter, Hanwha Life's RBC (Risk-Based Capital) ratio was 159%, which is lower than the life insurance industry average.

The company official added, "We plan to manage the RBC ratio at around 170% by the end of this year through expanding variable insurance hedging and increasing profits in the fourth quarter."

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