Hanwha Life announced on the 31st that it has completed the acquisition process for a 75% equity stake in U.S. securities firm 'Velocity Clearing, LLC (hereafter referred to as Velocity).'
This acquisition of Velocity is the first case of a domestic insurer entering the U.S. securities market, which is the 'center of the global capital market.' Hanwha Life has established a platform that will allow it to increase revenue through local financial companies in the U.S. and provide superior global financial products to global customers.
Velocity, based in New York, is a specialized securities firm equipped with the capability to directly handle the process of funds and assets actually flowing after the execution of financial transactions (clearing and settlement). As of the end of 2024, Velocity has total assets of approximately $1.2 billion (about 1.67 trillion won) and has maintained a high growth rate, recording a compound annual growth rate (CAGR) of 25% in revenue over the past three years (2022-2024). Its net profit has also shown a stable upward trend, and continued revenue expansion is expected even after the acquisition.
Hanwha Life aims to promote early business stabilization through collaboration with the existing Velocity management team, while also working with Hanwha Asset Management's U.S. subsidiary and Hanwha AI Center (HAC) to foster synergies between finance and technology.
A representative from Hanwha Life noted, 'Hanwha Life has secured an opportunity to demonstrate its capabilities as a Korean financial institution in the U.S. market, which is the core of finance, which is highly significant' and added, 'We will continue to enhance our business capabilities based on digital financial technology and global networks, and strengthen consolidation among regions to ensure stable growth.'
Velocity's Michael Logan said, 'I expect the growth rate of Velocity to accelerate even more with the addition of Hanwha Life's global vision and network, and we will maximize the synergies between the two companies moving forward.'