Insurance Industry Developments: Key Takeaways and Statistics

Strategic Insights -

Seoul and Tokyo witnessed significant developments in the insurance sector. SK Group emerged as the priority buyer for Handuk Life Insurance, while the Korean government proposed abolishing auto reinsurance. In India, IFFCO plans to diversify into general insurance and IT, allocating US$22.94 million for the business. Meanwhile, National Australia Bank confirmed talks with Lend Lease regarding its subsidiary MLC Ltd.

Key Takeaways:

  • SK Group has been selected as the priority negotiating partner for the sale of Handuk Life Insurance, following its recent purchase of Kookmin Life.
  • IFFCO plans to diversify into general insurance and IT, allocating Rs1 billion (US$22.94 million) for the insurance business, out of which Rs740 million will be held by IFFCO and the rest by a foreign joint venture partner.
  • The Korean government proposed abolishing the program for reinsuring compulsory automobile liability plans under certain conditions, including the setting up of an arbitration body to mediate in disputes over payment of mandatory auto liability insurance.
  • National Australia Bank confirmed talks with Lend Lease regarding its subsidiary MLC Ltd.
  • The sale of Handuk Life Insurance is expected to be completed with SK Group as the priority negotiating partner.
  • IFFCO's diversification into insurance and IT is aimed at exploiting the growing potential in these sectors.
  • The proposal to abolish auto reinsurance in Korea may lead to changes in the insurance market.
  • AMP Ltd shares slumped by 85 cents to $A15.95 ($US9.61) after National Australia Bank confirmed talks with Lend Lease regarding its subsidiary MLC Ltd.

Statistics:

  • US$22.94 million: Total equity for IFFCO's insurance business.
  • Rs1 billion: Total equity for IFFCO's insurance business in Indian rupees.
  • Rs740 million: Amount allotted by IFFCO for the insurance business.
  • $A15.95: Closing price of AMP Ltd shares.
  • $US9.61: Closing price of AMP Ltd shares in US dollars.
  • $A15.92: Session low of AMP Ltd shares.

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • Asia Pulse Pte Ltd. CONTACT: Asia Pulse Production Centre Phone: (612) 9322 8634 Fax: (612) 9322 8639