Lotte Insurance (Lotte) has allegedly initiated discussions with American private equity firm JC Flowers & Co regarding a potential sale, industry sources revealed.
According to The Chosun Daily, South Korean private equity entity JKL Partners is also reported to have approached JC Flowers in connection with this transaction.
JP Morgan, the appointed lead manager for the sale, has extended negotiations to include prominent global private equity firms such as BlackRock and Blackstone. This strategy aims to strengthen their bargaining position by engaging multiple international buyers.
Sources told The Chosun Daily that JP Morgan is actively courting overseas investors for the sale. JKL Partners has enlisted a foreign investment bank to manage the sale, reflecting a strategic focus on attracting foreign capital.
An industry insider noted that the seller had recently met with potential investors, including JC Flowers, although it remains to be seen whether overseas private equity firms will express interest in a South Korean insurance company.
JP Morgan's track record includes handling several significant global insurance transactions last year. Notable among these were the sale of AmMetLife, a collaboration between Malaysia's AmBank and MetLife, and the transfer of a stake in Singlife from the UK's Aviva Group to Japan's Sumitomo Life.
The initiation of sales talks follows the launch of Lotte's travel insurance offering for foreign tourists visiting Korea.
