Shinhan Financial Group is acquiring Lotte Non-Life Insurance (000400).
The holding company's board met on the morning of the 13th and approved the acquisition, according to financial industry sources.
The deal covers the entire 77.04% stake held by JKL Partners, the private equity firm that is Lotte Non-Life Insurance's largest shareholder.
The transaction has been reported at around 900 billion won ($630 million) on a 100% stake basis, though the specific contract amount has not been disclosed. Shinhan Financial plans to sign a share purchase agreement with JKL Partners later in the day.
The acquisition is seen as a move to strengthen Shinhan Financial's competitiveness in the non-life insurance business. The group acquired BNP Paribas Cardif General Insurance in 2022 and relaunched it as Shinhan EZ General Insurance, but losses have continued since then, prompting the group to consider expanding its non-life insurance operations.
Shinhan Financial had previously signaled a cautious stance on a Lotte Non-Life Insurance deal when it reported second-quarter earnings on July 23. At the time, Chief Financial Officer Jang Jung-hoon said the group would pursue mergers and acquisitions "within a scope that does not violate the principles of Value-up 2.0 announced in April."
Follow-up procedures, including approval from financial regulators, remain before the acquisition can be completed.