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By Kim Bo-eun
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| Korea Times file |
AXA's headquarters has selected Samjong KPMG as the lead manager for the sale.
AXA Korea has focused on direct motor insurance, where insurance policies are sold online. Its loss ratio from car insurance has increased, leading to a net loss of 33.65 billion won last year.
Shinhan Financial Group and Kyobo Life Insurance have been named as firms likely to take part in the bid.
Shinhan Financial is expected to be willing to acquire AXA because it does not hold a non-life insurer in its portfolio. Given KB Financial Group's latest acquisition of the Prudential Life Insurance Company of Korea, Shinhan has been eyeing opportunities to expand its portfolio, as the top two financial groups engage in fierce competition.
Kyobo Life, meanwhile, is seen to be interested in AXA as well. Kyobo Life in 2007 sold shares of its motor insurance unit launched in 2001.
The firm, which has an online life insurer affiliate, Kyobo Life Planet, is known to have explored whether the acquisition of AXA could create synergy in its digital drive.
KakaoPay is also considered to be a potential buyer of AXA, as it is preparing to launch an online non-life insurer. The acquisition could be a strategic move to enter the insurance business, given KakaoPay lacks expertise in the sector.
The fintech firm, however, stated that it will push forward with its plan to establish an online insurer on its own.
Woori Financial Group also does not have any insurance affiliates, but it has not prioritized the acquisition of one given the large capital burden it would pose.
Woori has stated that its priority is to acquire a brokerage unit, which is also currently absent in its portfolio.
