ING Life Insurance Korea, which plans to get listed on the stock exchange this year, will start road shows for its IPO this week, showing confidence in its risk management capability.
The company will begin on Thursday, pitching to potential buyers in the US, Hong Kong, and Singapore. On April 10, it will present to domestic investors. A 40% share of the insurer, held by private equity fund MBK Partners, is up for grabs.
Data from the Korea Life Insurance Association shows that 97% of ING Korea’s investments are in low-risk assets, such as government and public bonds. It also has less exposure to fixed rate guaranteed products, with only 10%, compared to over 30% for its competitors.
In 2015, ING Life Korea had KRW304.8 billion (US$272.5 million) in net profit, which declined to KRW290 billion (US$259.3 million) in 2016. Estimates for 2017 see it climbing back to around the KRW300 billion mark.
“ING Life has been building a good reputation with foreign investors for its strengths in capital and dividends,” a Seoul analyst told the Korea Times. “Given its dividend yield of around 5%, the company’s shares will be seen as an attractive investment.”
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