In a significant move within South Korea’s insurance sector, a majority stake in Lotte Insurance, the country’s seventh-largest non-life insurer, is set to be sold for over KRW2 trillion ($1.45 billion).
Reports from The Korea Times indicate that local private equity firm JKL Partners is initiating the sale of its 77% stake in Lotte Insurance. JKL initially acquired a 53% stake in the insurer in 2019 for KRW373.4 billion, subsequently increasing its ownership to 77% through a rights offering by Lotte Insurance later that year. The total investment by JKL amounted to approximately KRW730 billion.
This decision comes as Lotte Insurance achieved a remarkable turnaround in its financial performance in 2023, recording a record-high net profit of KRW301.6 billion. The sale of the majority stake is poised to attract significant attention and investment interest within the Korean financial market.
