Combined entity set for 2027 launch as Woori strengthens nonbank portfolio
Woori Financial Group said Tuesday it will merge Tongyang Life Insurance and ABL Life Insurance into a 55 trillion won ($39 billion) insurer, with the combined company targeted for launch in the second half of 2027.
The merger represents a major expansion of Woori’s insurance business as the group seeks to reduce its reliance on banking and build stronger nonbank operations.
Woori plans to develop the combined insurer into one of its core businesses and a new growth engine.
The financial group acquired Tongyang Life and ABL Life on July 1, 2025. It converted Tongyang Life into a wholly owned subsidiary through a comprehensive share exchange on Aug. 11, clearing the way for merger preparations.
Woori said the integration will combine the insurers’ capital bases, sales networks and product portfolios, while allowing the group to concentrate resources and expertise in the insurance sector.
The merged company will focus on strengthening its contractual service margin, a key indicator of future insurance profitability, by expanding sales of profitable policies.
It will also seek to maintain a stable Korean Insurance Capital Standard ratio, which measures an insurer’s ability to absorb potential losses and meet policyholder obligations.
The strategy comes as Korean insurers navigate rapid demographic aging, stricter capital requirements and changes in actuarial assumptions.
Woori plans to introduce artificial intelligence across sales support and management processes at the two insurers. The group expects AI-based systems to improve operational efficiency and help deliver more personalized products and services.
It will also explore new businesses such as senior care, seeking to capture growing demand as Korea solidifies its status as a superaged society.
“The insurance industry is undergoing significant changes due to demographic shifts, tighter capital adequacy regulations and changes in actuarial assumptions,” a Woori Financial official said.
“The merger will provide an opportunity to strengthen Woori’s insurance business significantly and achieve more balanced growth across the group’s portfolio.”
Woori will hold a town hall meeting Wednesday, chaired by Woori Financial Group Chairman Lim Jong-ryong, with executives and team leaders from Tongyang Life and ABL Life.
The meeting will formally begin discussions on the integration process and the group’s vision for the new insurer.
By Choi Yeon-jae (ch0221@heraldcorp.com)
