Shinhan Financial Group is acquiring BNP Paribas Cardif General Insurance, its joint venture with French financial groups BNP Paribas and AXA.
In a share purchase agreement signed on Friday, Shinhan will hold 94.54% in BNP Paribas Cardif General Insurance, which was established in 2014. While the transaction price was not disclosed, The Korea Herald reported an amount of around KRW40 billion (SG$45.8 million).
“With this acquisition of a non-life-insurance company, we plan to complete our business portfolio as a comprehensive financial group and provide new customer services through synergy between group subsidies based on abundant customer data collected from online and offline channels,” a statement from Shinhan said.
The move comes several months after it was reported that Shinhan was looking to acquire a general insurance company to gain a foothold in the market.
BNP Paribas Cardif General Insurance is undergoing some struggles with profitability, with a net loss of KRW5.4 billion in the first half of 2021. The company’s assets are at KRW18.4 billion, while liabilities are at KRW48 billion.
Shinhan Financial Group is one of the largest in Korea, with 16 affiliates in various industries, such as banking, investment management and life insurance. According to financial observers, general insurance was the only major financial services industry it was missing.
“We will introduce an unprecedented digital non-life-insurance company via various forms of collaboration with digital startups and others in addition to further solidifying the current business area,” Shinhan said.
