[서울파이낸스 김희정 기자] Fubon Hyundai Life Insurance announced that it held a board of directors meeting on the 18th and approved a total capital increase of 60.8 billion won, including a capital increase of 458 billion won and issuance of subordinated bonds of up to 150 billion won.
The capital increase of 458 billion won is expected to be completed around July after going through related procedures such as subscription procedures. The issuance of subordinated bonds worth up to 150 billion won is expected to be implemented gradually by the end of this year depending on market conditions.
This capital expansion of Fubon Hyundai Life Insurance maintains an appropriate payment capacity (RBC) ratio according to continuous asset growth and business expansion, It is a preemptive response measure.
Fubon Hyundai Life Insurance’s total assets at the end of the third quarter of last year (end of September) stood at 17.5 trillion won, up 30% from the end of 2018 (1.5 trillion won). The retirement pension assets are also showing steady growth, and as of the end of the third quarter of last year, it is ranked second in the life insurance industry with more than 8 trillion won.
Net income also turned to a surplus from 61.2 billion won in 2017 to 48.3 billion won in 2018, and is showing substantial growth to 84.3 billion won in 2019. In 2020, net profit is expected to exceed 2019 performance. Fubon Hyundai Life’s RBC ratio is 210.8% as of the end of the third quarter of last year.
This year, Fubon Hyundai Life Insurance plans to maintain the continuous growth of its flagship retirement pension through its sales channel strategy, and improve profitability through the improvement of a product portfolio that combines savings and guarantees in the Bancassurance (BA) channel. In addition, the improvement of the efficiency of the telemarketing (TM) channel and the qualitative growth of the FP channel were also selected as the sales task of the year. It is known that it is also considering relaunching the corporate branch (GA) channel.
Fubon Life Insurance, Taiwan’s largest shareholder, will invest more than 1 trillion won in the Korean market through this capital increase. In December 2015, it invested 220 billion won in Fubon Hyundai Life Insurance and 240 billion won in September 2018.
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