Korea Investment Holdings is moving to acquire Cardiff Life. Prior to this, Korea Financial Holdings, which expressed interest in the insurance business by investing 100 billion won in Hanwha Life Financial Services, is now taking active steps.
According to the investment banking (IB) industry on the 27th, Korea Investment Securities is in the process of selecting a due diligence advisory firm for the acquisition of Cardiff Life. Currently, Samjung KPMG is expected to be chosen as the due diligence agency.
The acquisition target is a 100% equity stake in Cardiff Life. Currently, Cardiff Life is a major shareholder holding 85% of Cardiff from the France-based global insurer BNP Paribas Cardiff. The second largest shareholder is Shinhan Bank with 15%. The expected sale price is discussed to be in the mid-range of 100 billion won.
Korea Financial Holdings has already shown direct and indirect interest in the insurance business. In September 2023, the company invested 100 billion won in Hanwha Life Financial Services, a subsidiary of Hanwha Life, which operates as an insurance agency. At that time, Korea Financial Holdings acquired convertible preferred stocks issued by Hanwha Life Financial Services through Korea Investment Private Equity and Korea Investment Value Asset Management.
Similar to Korea Financial Holdings, non-bank financial holding companies Mirae Asset Group and Meritz Financial Group each have insurance portfolios, including Mirae Asset Life Insurance and Meritz Fire & Marine Insurance. However, Korea Financial Holdings has primarily operated in the securities, asset management, and venture capital sectors. If Korea Financial Holdings successfully acquires Cardiff Life, competition among non-bank financial holding companies is expected to intensify.
As of the third quarter of last year, Cardiff Life's asset size is around 2.714 trillion won. It has incurred net losses for four consecutive years from 2019 to 2023. The net losses were 20.8 billion won in 2023, 25.7 billion won in 2022, 4.8 billion won in 2021, 5.6 billion won in 2020, and 5.8 billion won in 2019. The net loss for the third quarter of last year was 6.8 billion won.
Meanwhile, earlier, the Industrial Bank of Korea also showed interest in acquiring Cardiff Life. At that time, the bank was considering an indirect acquisition through investment in a private equity fund. BNK Financial Group had also previously attempted to acquire Cardiff Life in partnership with the private equity firm Tunaon Partners.
The company stated, “It is true that we are considering acquisition of the insurance company currently on the market,” and added, “However, we have not confirmed the acquisition or the acquisition target, and we cannot verify the due diligence institution.”