Kyobo Life bids for MBK-owned ING Life Korea

According to The Korea Times, a company official confirmed a letter of investment intent had been submitted. China Life Insurance is also said to be in the running for the asset, which has been priced at around $3 billion. Earlier local media reports suggested that the pre-bidding process would be extended due to lower-than-expected interest.

MBK acquired a 90% stake in ING Life Korea from ING Groep for $1.6 billion in 2013, with the seller retaining a 10% interest. The deal was financed through a KRW1 trillion ($846 million) syndicated loan. MBK overcame competition from the likes of Tongyang Life Insurance and Kyobo Life.

Established in 1987, ING Life Korea is the country's fifth-largest insurer with around KRW30 trillion in assets and net income of KRW305 billion last year. It sells protection, savings, annuity and variable products to individual and group customers, and as of December 2014, had two million contracts in force worth $73.8 billion.

Kyobo, which has KRW92 trillion in assets, also has private equity investors. In 2012, a consortium led by Affinity Equity Partners bought a 24% stake in the business for $1.1 billion. The other investors were GIC Private, Baring Private Equity Asia and IMM Private Equity. That transaction followed the sale of a 9.9% interest for $398 million to Ontario Teachers' Pension Plan (OTPP).

More recently, Chinese groups have shown significant interest in Korean insurance assets. Last year, Anbang Insurance Group bought a majority stake in Tong Yang Life Insurance from Vogo Investment - now known as VIG Partners - for KRW1.13 trillion. Anbang subsequently acquired Allianz Life Insurance Korea and Allianz Global Investors Korea for around $3 million.

MBK made the ING Life investment through its third fund, which closed at $2.7 billion in 2013. The GP is said to be preparing to launch Fund IV. At the end of last year, the firm initiated a process to sell water purifier manufacturer Coway but the only prospective bidder, local conglomerate CJ Corporation, declined to submit an offer.

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• Topics
• North Asia
• Trade sale
• Financials
• South Korea
• Exit
• MBK Partners