South Korea’s insurance M&A market could regain momentum as several long-running sales processes move towards key stages, with KDB Life Insurance, Lotte Insurance, BNP Paribas Cardif Life and AXA Insurance among the companies attracting attention.
Korea Investment Holdings has been selected as preferred bidder for KDB Life, while Lotte Insurance is expected to launch an open sale as early as this month, according to Maeil Business Newspaper.
The developments could affect the sales prospects of other insurers. Korea Investment Holdings had previously been considered a potential buyer of BNP Paribas Cardif Life, but its pursuit of KDB Life could reduce the likelihood of it returning to the Cardif process.
Meanwhile, Kyobo Life Insurance has shifted its acquisition focus towards AXA Insurance after previously considering BNP Paribas Cardif Life. The AXA sale, which has faced delays since first being launched in 2020, could be valued at around KRW300bn ($215m).
Kyobo Life is currently selecting an investment bank to advise on the transaction.
Lotte Insurance could also face challenges in attracting strategic buyers. Its sale price is estimated at around KRW1tn, while Korea Investment Holdings’ decision to pursue KDB Life means a new strategic investor may be needed to create competitive tension in the auction.
The transactions come as foreign insurers continue to maintain a presence in the Korean market, including AIA, MetLife, Fubon Hyundai Life, BNP Paribas Cardif, AXA and AIG.
The renewed activity could signal a revival of Korea’s insurance consolidation market after several attempted transactions failed to progress in recent years.