China-based Anbang Insurance Group has reportedly agreed to acquire a majority stake in South Korean life insurer Tong Yang Life Insurance, for around $1bn.
Anbang will acquire 57.5% stake in Tonyang from South Korean private equity fund Vogo Investment. The company will buy a total of 63% stake in the firm, if two other investors in Tonyang agree to sell their interests.
As per a statement issued by Vogo Investment, the deal is subject to regulatory approval in China and South Korea and is expected to be completed in the second quarter of 2015, reported the WSJ.
Established in 1989, Tong Yang Life owned KRW19.7trn ($17.8bn) assets, as of third quarter 2014, reports China Money Network.
Earlier this week, Anbang Insurance entered into an agreement to acquire Netherlands’ SNS REAAL insurance arm Vivat Verzekeringe, for around €150m.
As of December 2014, regulatory solvency of Vivat was at around 136%, while regulatory solvency of SRLEV, the legal entity including most of the life insurance activities, was around 141%.
Image: Anbang to acquire majority stake in Tong Yang Life Insurance. Photo: courtesy of Vichaya Kiatying-Angsulee/ FreeDigitalPhotos.net.