Heungkuk Fire, Korea Investment, OK Financial and JC Flowers submit final acquisition bids, with Kyobo Life opting out
Korea Deposit Insurance Corp. to select preferred bidder next month
Top five non-life insurers to absorb contracts if sale falls through
Four companies — Heungkuk Fire & Marine Insurance, Korea Investment Holdings, OK Financial Group and US-based private equity fund JC Flowers — have submitted final bids to acquire Yebyeol Non-Life Insurance, the bridge insurer established to take over MG Non-Life Insurance's operations.
The Korea Deposit Insurance Corp. said Tuesday it had closed the re-announced public sale process for Yebyeol Non-Life Insurance.
Five companies conducted due diligence on Yebyeol — Heungkuk Fire & Marine Insurance, OK Financial Group, Korea Investment Holdings, Kyobo Life and JC Flowers — but Kyobo Life did not submit a final acquisition proposal, leaving four bidders in the running.
The deposit insurer said it will evaluate the four bids on three criteria: a preliminary review of statutory acquisition requirements, an assessment of the requested financial support amount, and an evaluation of each bidder's ability to fulfill the contract. Bidders that meet the eligibility threshold are expected to be designated as preferred negotiating partners next month and granted an exclusive negotiation period.
The deposit insurer has pursued multiple sale attempts since MG Non-Life Insurance was designated an insolvent financial institution in April 2022, but each effort has fallen through. In late 2024, Meritz Fire & Marine Insurance was named the preferred bidder, only for that deal to collapse as well. Following that failure, the Financial Services Commission approved the transfer of MG Non-Life's insurance contracts and ordered a suspension of its business operations, moving all policies and assets to the bridge insurer Yebyeol Non-Life Insurance.
Under an agreement reached with the MG Non-Life Insurance labor union last year, the deposit insurer is making one final attempt to sell Yebyeol this year. If the sale fails, all contracts held by Yebyeol will be transferred to the five major non-life insurers — Samsung Fire, Meritz Fire & Marine Insurance, DB Insurance, KB Insurance and Hyundai Marine & Fire Insurance.
psj@heraldcorp.com
