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(Seoul = Yonhap News) Reporter Ha Chae-rim = Fubon Hyundai Life, a Taiwan-based life insurance company, is about to expand capital by 680 billion won.
Fubon Hyundai Life Insurance held a board meeting on the 18th and announced that it approved a plan to increase capital, including a capital increase of 458 billion won and issuance of subordinated bonds of up to 150 billion won.
The paid-in capital increase is scheduled to be completed in July through related procedures such as subscription.
The issuance of subordinated bonds will proceed according to the market conditions until the end of the year.
This capital increase is intended to maintain an adequate solvency ratio (RBC) according to asset growth and business expansion, and to preemptively respond to the new International Accounting Standards (IFRS17) and the new payment capacity system (K-ICS), which are scheduled to be introduced in 2023. Fubon Hyundai Life explained.
Fubon Hyundai Life Insurance’s total assets at the end of the third quarter of last year were KRW 17.5 trillion, up 30% from the end of 2018. However, as of the end of the third quarter of last year, the RBC was 210.8%, exceeding the current recommended level of financial authorities (150%), but much lower than the life insurance industry average of 303.5%.
Fubon Hyundai Life Insurance explained, “We plan to maintain the continuous growth of the retirement pension, our main sales channel this year, and improve profitability by improving the product composition that combines savings and guarantees in the Bancassurance (BA) channel.”
Meanwhile, Fubon Life Insurance, Taiwan’s largest shareholder of Fubon Hyundai Life, said that the completion of the capital increase will result in more than 1 trillion won in investment in the Korean market.
Fubon Life Insurance previously invested 220 billion won in December 2015 and 240 billion won in Fubon Hyundai Life Insurance in September 2018.[316140] It owns a 4% stake.
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2021/01/18 19:46 sent