Five life insurers have jumped into the race to acquire KDB Life Insurance, intensifying the competition. Along with the big three—Samsung, Hanwha, and Kyobo Life Insurance—Korea Investment Holdings (Korea Investment & Securities Co.) and Taekwang Group have also joined.
On the 1st, the financial industry said five companies submitted letters of intent for the preliminary bidding to sell KDB Life, which was led by Samil accounting firm.
It had been expected that only Korea Investment & Securities Co., Taekwang Group, and Hanwha Life Insurance would participate in this acquisition race. But with Samsung Life Insurance and Kyobo Life Insurance also entering, the contest is expected to be fiercer than industry projections.
Industry watchers noted this is because life insurance targets are rare on the market and because KBD Life Insurance is a subsidiary of Korea Development Bank (KDB), giving it an edge in alternative investments.
Another reason cited is that Korea Development Bank (KDB) has left the door open to discussing pre-sale capital injections during the divestment process. Korea Development Bank (KDB) plans to draw up a shortlist from the preliminary bidders and conduct due diligence, with the main bidding expected as early as Aug. in.
Previously, Korea Development Bank (KDB) attempted to sell KDB Life six times since 2014 but failed, and in Mar. last year incorporated KDB Life as a subsidiary.