Woori Financial Group is on track to significantly expand its footprint in South Korea’s insurance market with the proposed acquisition of Tongyang Life Insurance and ABL Life Insurance. This strategic move follows the bankruptcy of China’s Anbang Insurance, which previously owned both companies. Anbang’s financial troubles led to the formation of Dajia Insurance, a government-backed entity, to manage its assets, paving the way for Woori’s potential acquisition.
In July, Woori Financial Group signed a non-binding Memorandum of Understanding (MOU) with Dajia Insurance, initiating due diligence to evaluate the financial conditions of Tongyang and ABL Life. This due diligence, running until August 6, is crucial for assessing risks and confirming the viability of the acquisition.
Anbang’s bankruptcy is expected to favor Woori’s bid, as the sale is part of a broader effort by Dajia Insurance to liquidate Anbang’s assets. Dajia holds a 42.01% stake in Tongyang Life and fully owns ABL Life, with plans to finalize the sale by year-end. The appointment of a new chairman at Dajia Insurance by Chinese authorities is seen as an effort to expedite this process.
The combined assets of Tongyang and ABL Life total approximately 49.91 trillion won ($36.97 billion), positioning Woori Financial as a leading contender in South Korea’s insurance sector. The acquisition could make Woori the sixth-largest insurer in the country, enhancing its competitive edge amid a saturated M&A market.
