After recent speculation over the rumored acquisition of Kyobo Auto, French insurance group AXA has now confirmed that it has reached an agreement with South Korea's Kyobo Life, to acquire a 75% stake in its motor insurance business Kyobo Auto.
Kyobo Auto has a customer base of more than 800,000 clients and a market share of 30% in the South Korean direct insurance market.
Philippe Donnet, head of AXA’s Asia Pacific region said: The acquisition of Kyobo Auto is an excellent opportunity to enter as the leader in the South Korean direct property & casualty market, one of the fastest growing and most developed general insurance markets in Asia, and to significantly increase the size of AXA’s P&C operations in the region.
Kyobo Auto has a very strong competitive position, based on the combination of a strong focus on customer satisfaction, successful marketing and competitive offers. We are very pleased to welcome Kyobo Auto teams and we intend to leverage the efficient platform they have built to further develop AXA’s P&C operations in Asia.
On completion of this acquisition, AXA will serve more than two million clients through its direct distribution P&C operations worldwide.
The deal is subject to local regulatory approvals.