 |
Photo: Samsung Life Insurance |
[Alpha Biz= Paul Lee] Samsung Life Insurance has officially acquired Samsung Fire & Marine Insurance (Samsung Fire & Marine), following the approval from the Financial Services Commission (FSC) on Wednesday.
With this acquisition, Samsung Life becomes the parent company of not only Samsung Card and Samsung Securities but also Samsung Fire & Marine, solidifying its role as the leading entity in the Samsung Financial Group.
The financial authorities had previously begun the review process after Samsung Life submitted an application on the 13th of last month to incorporate Samsung Fire & Marine as a subsidiary. This move was prompted by a corporate value enhancement (value-up) plan that Samsung Fire & Marine announced in January.
As part of its shareholder return policy, Samsung Fire & Marine revealed plans to retire more than 10% of its treasury shares. The issue arose because, after retiring treasury shares, the ownership stakes of other shareholders, including Samsung Life’s, would increase. As a result, Samsung Life’s stake in Samsung Fire & Marine increased from 14.98% to 16.93%. The Insurance Business Act prohibits insurance companies from holding more than 15% of the shares in a non-subsidiary company.
With this restructuring, Samsung Life will now be able to hold more than 15% of Samsung Fire & Marine’s shares. According to Samsung Fire & Marine’s shareholder return plan, Samsung Life’s stake will increase to 15.9% this year and will rise to 17% by 2028.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
