MBK-owned ING Life files for Korea IPO

The filing gives no indication of the size of timing of the offering. Previous reports have claimed that ING Life plans to raise more than $1 billion in the IPO, although MBK was also said to be considering trade sale options. Kyobo Life Insurance said last May that it had submitted an offer for the company, but no further information was disclosed on the process.

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. The GP completed a $119.8 million leveraged recap in 2015.

Established in 1987, ING Life Korea is the country's fifth-largest insurer with around KRW30 trillion in assets. 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. The company posted revenue of KRW4.68 trillion in 2015 while net profit reached KRW304.8 billion.

Various Chinese strategic buyers have shown interest in Korean insurance assets, although outbound investment has slowed in recent months following government-imposed restrictions. Last year, Anbang Insurance Group bought a majority stake in Tong Yang Life Insurance from 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 completed a first and final close on Fund IV last December at $4.1 billion.

Samsung Securities and Morgan Stanley are advising on the ING Life IPO.

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• Topics
• North Asia
• IPO
• Financials
• South Korea
• MBK Partners
• Exit
• insurance