【Youth Daily】 Fubon Hyundai Life, a Taiwanese life insurance company, is about to expand capital by 680 billion won.
Fubon Hyundai Life Insurance announced that it held a board of directors meeting on the 18th and approved a total capital increase of 680 billion won, including a capital increase of 458 billion won and issuance of subordinated bonds of up to 150 billion won.
This capital expansion is to maintain an appropriate RBC ratio in line with continuous asset growth and business expansion. It is also a preemptive measure of 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 Insurance’s total assets as of the third quarter of last year were 17.5 trillion won, up 30% from the end of 2018 (13 trillion won). As of the end of the third quarter of last year, the retirement pension assets have also grown steadily, keeping the second place in the life insurance industry with more than 8 trillion won.
Net income has also maintained steady growth since it turned to a surplus from -61.2 billion won in 2017 to 48.3 billion won in 2018. In 2019, it recorded a surplus of 83.4 billion won, and in 2020, it is expected to achieve more than 2019.
This year, Fubon Hyundai Life Insurance plans to maintain the continuous growth of its main channel, the retirement pension, as a sales channel strategy. In addition, the BA channel plans to improve profitability by improving product portfolios that combine savings and guarantees.
In addition, enhancement of the efficiency of the TM channel and qualitative growth in the FP channel were also selected as business tasks of the year, and the relaunch of the GA channel is also being considered.
Meanwhile, Fubon Life Insurance, Taiwan Fubon Life, the largest shareholder of Fubon Hyundai Life, said that it will invest more than 1 trillion won in the Korean market by completing the capital increase.
Fubon Hyundai Life Insurance previously invested 220 billion won in December 2015 and 240 billion won in September 2018 in Fubon Hyundai Life Insurance. In September 2019, the following year, the company owns a 4% stake in Woori Finance with an investment of 355.8 billion won.
【Youth Daily = Reporter Inara】