 |
| The headquarters of Woori Financial Group located in central Seoul / Yonhap |
Woori board opposes Cardif Life acquisition, while prioritizing acquisition of securities firm
By Anna J. Park
Woori Financial Group aims to push ahead with the expansion of its non-banking business portfolio, but the financial group's recent attempt to acquire BNP Paribas Cardif Life could not overcome the board's opposition.
According to the investment banking industry, Woori Financial has been positively reviewing the option of acquiring the life insurance company in recent months. However, the financial group's board is opposed to the acquisition plan on the grounds that the timing isn't right, saying more life insurance firms are expected to be up in the M&A market with the slated adoption of new IFRS17 accounting standards from the next year.
BNP Paribas Cardif has been attempting to sell its life insurance affiliate in Korea since July. BNP Paribas Cardif holds an 85-percent stake in its life insurance affiliate, whose assets total 3 trillion won ($2.15 billion). The life insurer is ranked 21st out of a total of 23 life insurers in Korea.
At first, the two sides' interests seem to fit. BNP Paribas Cardif aims to entirely exit from the Korean market by dropping Cardif Life, following its sale of Cardif General Insurance to Shinhan Financial late last year. Woori Financial has also been focusing on strengthening its non-banking businesses and adding Cardif Life seemed to be a logical choice.
Yet the financial group's independent directors had been adamant in their opposition to the acquisition, and the persuasion to change their minds has failed. The outside directors asked the financial group to prioritize the acquisition of a securities firm, rather than a life insurer.
Also, Cardif Life's continual annual net loss of 5.6 billion won in 2020 and 4.8 billion won in 2021 did not appeal to the financial group board members.
While Woori Financial Group said that it cannot publicly confirm facts about the board's decisions and discussions, it is expected that the acquisition of the life insurer would no longer be on the agenda of the financial group's board meeting scheduled for this week.
![[INTERVIEW] Partnerships with Korean companies help Delta Air Lines' post-pandemic recovery](https://img.koreatimes.co.kr/upload/thumbnailV2/892c5f8b83fc45018380807ff3c3d42b.jpg/dims/resize/178/optimize)
![[VIDEO] Do Koreans know K-pop idols well?](https://img.koreatimes.co.kr/upload/thumbnailV2/230126_koopstreet_web_3be4f49481002.jpg/dims/resize/178/optimize)
