According to sources within the investment banking (IB) industry on March 27, Korea Investment Holdings is progressing with its potential acquisition of BNP Paribas Cardif Life Insurance. Samjong KPMG has been chosen to lead the due diligence process.
Last month, other accounting firms were initially approached, but conflicts regarding auditor independence led to Samjong KPMG being selected to handle the task. The acquisition involves the purchase of all outstanding shares of Cardif Life. The primary shareholder is the French insurer BNP Paribas Cardif, which holds an 85% stake, with Shinhan Bank owning the remaining 15%.
The anticipated sale price is projected to be between 100 billion and 200 billion won. As of the end of 2023, Cardif Life’s assets were valued at 2.9314 trillion won. However, the company’s financial performance has been a challenge. It has experienced net losses for four consecutive years, spanning from 2019 to 2023. The net losses amounted to 20.8 billion won in 2023, 25.7 billion won in 2022, 4.8 billion won in 2021, 5.6 billion won in 2020, and 5.8 billion won in 2019. Furthermore, the accumulated net loss during the first three quarters of last year reached 6.8 billion won. These figures suggest a high probability of a yearly deficit for the preceding year as well.
Since 2022, Korea Investment Holdings has explored acquiring insurance companies, including KDB Life and ABL Life, to bolster its asset size and diversify its business offerings. Nevertheless, these attempts have been unsuccessful due to differences in price expectations or difficulties in synergizing with Korea Investment Holdings. CEO Kim Nam-goo has stated that the company is considering acquiring an insurance company, increasing the likelihood of a finalized agreement.
