KB Financial Group said on August 27 that it has received approval from the Financial Services Commission to acquire Prudential Life Insurance of Korea.
In April, the South Korean financial giant, inked a deal with Prudential to buy a 100 percent stake in the insurance company for some 2.3 trillion won ($19.4 billion). It is scheduled to pay for the acquisition by Aug. 31. When the deal is closed, the insurance firm will become the financial group’s 13th subsidiary.
The takeover of the nation’s sixth life insurance firm is in line with KB’s drive for future growth. The group has tried to beef up non-banking businesses to diversify its revenue stream other than its main subsidiary, KB Kookmin Bank. The list of KB’s nonbanking units recently acquired by the group includes KB Capital, KB Insurance, and KB Securities.
Prudential will operate as an independent entity for a while in order to improve business stability while seeking synergy with other KB subsidiaries and affiliates.
The acquisition will also be able to help KB advance its wealth management services by utilizing a vast amount of data of the life insurer’s 650,000 customers.
“With the latest acquisition, KB will try to offer a range of quality financial services for customers,” a company official said.
By Kim Young-won (email@example.com)
Logo of KB Financial Group (KB)