AXA General Insurance Korea has quelled rumours that the company is planning to leave the South Korean market.
The France-headquartered insurance giant entered the South Korean market in 2001 and is currently the only foreign-owned player providing motor insurance. There have been repeated rumours that AXA is looking to sell its operations in the country, BusinessKorea reported.
AXA has made several exits recently from Asian markets, with HSBC acquiring AXA Singapore in February, and Generali snapping up AXA’s Malaysian joint ventures in August. Last year, Gulf Insurance Group took over AXA’s businesses in the Gulf region, encompassing the markets of Bahrain, the UAE, Saudi Arabia, Oman and Qatar.
AXA is facing huge competition in the motor segment, with the four largest motor insurers – Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, Dongbu Insurance, and KB Insurance – accounting for almost 85% market share.
“The top four in the market are continuing to expand, and this lopsidedness is far from desirable,” said Guillaume Mirabaud, CEO of AXA General Insurance Korea. “Although the South Korean government is trying to attract more capital and investment from abroad, many things still need to be improved in terms of infrastructure and policy.”
Mirabaud also said that AXA’s Korean business is geographically important, as it serves as a technical support provider for the insurer’s operations in Southeast Asia.
