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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] MG Non-Life Insurance is expected to be acquired by Meritz Fire & Marine Insurance after five previous attempts to sell the company.
According to financial industry sources on the 6th, the Korea Deposit Insurance Corporation (KDIC), which is managing the sale of MG Non-Life Insurance, plans to designate Meritz Fire & Marine Insurance as the preferred bidder as early as the 9th.
MG Non-Life Insurance had previously failed to find a buyer in four competitive bidding rounds. In October, the sale process shifted to a private contract approach, drawing interest from Meritz Fire & Marine Insurance and the private equity firm Daily Partners. However, Daily Partners appears to have dropped out of the race as Industrial Bank of Korea, initially expected to participate as a strategic investor (SI), decided not to join.
Meritz Fire & Marine Insurance will make a final decision on the acquisition after conducting due diligence on MG Non-Life Insurance. As of the end of the second quarter this year, MG Non-Life Insurance’s provisional Risk-Based Capital (K-ICS) ratio stood at just 44.42%. Financial regulators recommend a K-ICS ratio of at least 150%. To meet this standard, assuming no increase in required capital, the company would need to secure approximately KRW 1 trillion in additional available capital.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
