This article was displayed on the ChosunBiz MoneyMove (MM) site at 7:51 a.m. on Feb. 11, 2026.
Korea Investment Holdings has narrowed its candidates for an insurance acquisition to three and begun final reviews. It had been looking at both life insurance and non-life insurers, but YeByeol Non-Life Insurance (formerly MG Non-Life Insurance), Lotte Non-Life Insurance, and KDB Life Insurance are now cited as the three final options.
All three companies are said to view Korea Investment Holdings as their preferred buyer and are courting it behind the scenes. In the industry, there is a view that by the end of March, when the main bid for YeByeol Non-Life Insurance is scheduled, it will become clearer which way Korea Investment & Securities Co.'s choice is leaning.
According to the investment banking industry, at the end of last month the Korea Deposit Insurance Corporation (KDIC), which is leading the sale of YeByeol Non-Life Insurance, said it selected Korea Investment Holdings, Hana Financial Group, and JC Flowers as preliminary acquirers based on prior screening such as major shareholder eligibility and an evaluation of letters of intent (LOIs) submitted in the preliminary bid. The asking price for YeByeol Non-Life Insurance discussed in the market had initially been about 200 billion to 300 billion won.
YeByeol Non-Life Insurance's strength is its relatively low price. The industry says YeByeol has especially been courting Korea Investment & Securities Co., and it is said to be willing to lower the sale price further if Korea Investment & Securities Co. wants.
However, the "low price" comes with conditions. The market expects the capital needed to normalize YeByeol after the acquisition to reach at least the 1 trillion won range. Even if the initial purchase price is lowered, the burden of capital injections could follow. An investment banking industry source said, "From Korea Investment & Securities Co.'s perspective, the decision should be made from a 'total cost' standpoint, adding the capital to be injected after the acquisition."
By contrast, Lotte Non-Life Insurance is considered the card that stands out for its "quality" among the three. Lotte Non-Life Insurance is the only profitable company among the candidates, and its contractual service margin (CSM—the present value of profits to be generated from future services) is said to reach 2.4 trillion won. Compared with the roughly 900 billion won CSM at YeByeol Non-Life Insurance and KDB Life Insurance, it is viewed as a relatively sound asset.
However, regulatory issues are also a variable for Lotte Non-Life Insurance. As it is at odds with the financial authorities over the Korea Insurance Capital Standard (K-ICS), estimates suggest that applying the Financial Supervisory Service (FSS) standard would require about 300 billion won in additional investment via a paid-in capital increase. Conversely, in a scenario where the FSS standard is not applied, there would be no capital increase burden, leading to expectations that how the "regulatory risk" is read will be a variable in the acquisition decision.
KDB Life Insurance is assessed as weak in terms of a "strategic picture." If Korea Investment Holdings acquires a non-life insurer, it can bundle wealth management (WM) and insurance products for sales or generate cash flow relatively quickly with fast-turnover products such as auto, fire, and indemnity plans. In contrast, life insurers often require ongoing capital injections due to their long-term liability structures. There are also concerns that high-interest guaranteed products sold by life insurers in the past could weigh on future earnings and capital. For this reason, some analysts say that if Korea Investment & Securities Co. acquires a life insurer, it will not be easy to create synergies with its securities and asset management arms.
An industry source said, "Around the end of March, before and after the main bid for YeByeol Non-Life Insurance, Korea Investment & Securities Co.'s priorities will become clearer."