South Korea’s Hanwha Life Insurance has authorized the issuance of up to $1 billion in international hybrid securities as the insurer responds to deteriorating capital metrics under tightened regulatory standards.
The board approved the plan at a May 27 meeting, targeting investors across the United States, Europe and Asia. The securities are expected to list on the Singapore Stock Exchange, with a demand assessment scheduled for next month.
The move follows pressure on Korean insurers from the Korea Insurance Capital Standard framework, which introduced stricter risk measurements in 2023. Hanwha Life’s K-ICS ratio declined to 155% in the first quarter from 164% at year-end, reflecting challenges from regulatory changes and market conditions.
The insurer already raised 600 billion won ($438 million) through domestic hybrid securities in March. Korean insurers issued 8.66 trillion won ($6.3 billion) in hybrid securities and subordinated bonds in 2024, up 70% from the previous year, as companies scrambled to maintain capital ratios.
Company officials cited the need to “proactively respond to changes in the global financial market and capital regulations,” with proceeds earmarked for strengthening capital soundness.
The capital raising comes as Hanwha Life pursues global expansion, having recently acquired U.S. securities firm Velocity Clearing and invested in Indonesia’s Nobu Bank. However, the repeated capital issuances highlight ongoing pressures facing Korean insurers under the evolving regulatory landscape.
