Hanwha Life Acquired Indonesian Insurer Multicor
[26 December, 2012] Hanwha Life Insurance finalized acquisition of an Indonesian insurance company Multicor Life Insurance Pt. Hanwha has announced that the company secured an 80 percent stake worth KRW 14 billion in Multicor from Indonesia’s Sinar Mas Group, and took over the management control of the company.
This is the first case for a Korean life insurance company to acquire a foreign life insurer through M&A. Also, this makes Hanwha Korea’s first life insurer to advance into Indonesia.
Multicor Life Insurance Pt. is a life insurer with total assets of KRW 7 billion, and Hanwha aims to gain a local business license with the acquisition. Currently, Indonesian authorities do not allow new business approval for foreign companies.
Hanwha’s entrance into the Indonesian market is based on the country’s huge market potential. Indonesia is the world's fourth most populated country(240 million populations) with strong domestic economy abounding in natural resources. It has shown average 6% of economic growth for past five years and estimated 6.3% growth for 2013 which proves it is a new rising insurance market. Also, Indonesia is a highly competitive market for global insurance companies as foreign life insurers have more than 50% of entire market share.
Hanwha Life plans to operate fully-fledged business in October 2013. It plans to gain footholds in major cities in Indonesia, including the capital city of Jakarta, Surabaja and Medan.
Sang-yong Park of the international market department in Hanwha Life said, “Hanwha is strengthening its global business through its expansion to overseas market including Indonesia. It is also actively considered to reach further to other Southeast Asian markets in the future.”
Currently, Hanwha Life operates 7 overseas units in 5 countries including Vietnam, China, Japan, the United States and the United Kingdom.
Established in 1946, Hanwha Life is a leading life insurance company and also the oldest in South Korea. Early on, we played a critical role in developing the insurance industry and the country's economic growth—always with our customers in mind.
For more information, visit: www.hanwhalife.com/english/
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea and a “FORTUNE Global 500” company. Hanwha Group has 61 domestic affiliates and 258 global networks in three major sectors: manufacturing and construction, finance, and services and leisure. With more than 65 years track record of industrial leadership, Hanwha’s manufacturing and construction businesses encompass a broad range of fields from chemicals & materials, aerospace & mechatronics, total solar energy solutions, and global construction. The finance network, covering insurance, asset management and securities, is the second largest non-bank financial group in South Korea. The services and leisure sector offers premium lifestyle services with retail and resort businesses.
For more information, visit: www.hanwha.com
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