Close Menu
Insurance Journal – Property Casualty Insurance News

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    How the Next Financial Crisis Starts

    July 4, 2025

    Insurance Underwriter Title Resources Group Appoints Natasha Branch as VP of Education and Underwriting Counsel

    July 4, 2025

    Supreme Court Rejects Challenge to Obamacare Preventive Care Coverage

    July 4, 2025
    Facebook X (Twitter) Instagram
    Insurance Journal – Property Casualty Insurance NewsInsurance Journal – Property Casualty Insurance News
    Facebook X (Twitter) Instagram
    SUBSCRIBE
    • Home
    • Business Insurance
    • Identity Protection
    • Life Insurance
    • Pets Insurance
    • Property Insurance
    • Vevehicle Insurance
    Insurance Journal – Property Casualty Insurance News
    Home ยป Kyobo Life Insurance Chairman Shin Chang-jae Resolves Put Option Dispute with Affinity Consortium
    Life Insurance

    Kyobo Life Insurance Chairman Shin Chang-jae Resolves Put Option Dispute with Affinity Consortium

    insurancejournalnewsBy insurancejournalnewsMarch 7, 2025No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest WhatsApp Email

    Kyobo Life Insurance Settles Put Option Dispute, Chairman Secures Stake

    Kyobo Life Insurance Chairman Shin Chang-jae has successfully navigated a complex put option dispute with the Affinity Consortium, the insurance company’s financial investor. According to a recent announcement, Chairman Shin and the Affinity Consortium, consisting of Affinity Equity Partners and the Singapore Investment Authority (GIC), have agreed to settle the put option at a price of 234,000 won per share.

    Chairman Shin Chang-jae
    Chairman Shin Chang-jae

    The Affinity Consortium, holding a 24% stake in Kyobo Life Insurance, comprises Affinity (9.05% stake), GIC (4.50%), and IMM PE along with EQT (5.23% each). As part of the settlement, Affinity and GIC have withdrawn their complaints to the International Chamber of Commerce (ICC). They have also made arrangements to sell their shares in Kyobo Life Insurance to a group of financial firms, including Shinhan Investment & Securities and Japan’s SBI Group, receiving 435 billion won and 215 billion won respectively, for the sale.

    This sale price for Affinity and GIC is notably less than the initial investment principal of 245,000 won per share, which totaled 680 billion won from both sides back in 2012. The initial shareholder agreement anticipated a return surpassing the investment, but due to a decline in Kyobo Life Insurance’s corporate value and substantial dividends received by Affinity and GIC over 13 years, the final arrangements were adjusted.

    Kyobo Life Insurance CEO, Cho Dae-kyu, expressed optimism, stating, “Kyobo Life Insurance will be able to focus more on the work of converting to a holding company and future-oriented challenges.” However, a dispute with other financial investors, specifically IMM PE and EQT, remains unresolved. IMM PE has put forth a claim that over 310,000 won per share would be a reasonable price considering the interest burden due to the delay in recovering investments.

    IMM PE and EQT intend to continue the put option dispute procedure. Chairman Shin has appointed EY Hanyoung as the third evaluation agency to assess the put option prices. The put option dispute goes back to 2012, when the Affinity Consortium acquired a 24% stake in Kyobo Life Insurance for 1.2 trillion won (245,000 won per share) in September 2012. They then established an agreement with Chairman Shin to trigger a put option if Kyobo Life Insurance failed to launch an IPO within three years.

    When the IPO bid failed, the Affinity Consortium attempted to execute the put option in October 2018 at 410,000 won per share. Chairman Shin contested what he deemed an excessive exercise price, leading to protracted legal battles. Following two arbitration awards, the ICC mandated that Chairman Shin satisfy the put option obligations in December last year. With the recent agreement between Affinity, GIC, and Chairman Shin, the put option dispute has turned a new chapter.

    With the resolution of the put option dispute, Chairman Shin has effectively gained up to 55.24% of Kyobo Life Insurance’s shares, inclusive of friendly shares. This figure includes Chairman Shin’s personal ownership of 33.78% and his family’s stake of 2.58%, combined with shares secured from Affinity, GIC, and Apulma Capital as a result of the dispute resolution.

    Affinity Consortium financial investment Kyobo Life Insurance put option Shin Chang-jae
    insurancejournalnews
    • Website

    Related Posts

    How the Next Financial Crisis Starts

    July 4, 2025

    Insurance Underwriter Title Resources Group Appoints Natasha Branch as VP of Education and Underwriting Counsel

    July 4, 2025

    Supreme Court Rejects Challenge to Obamacare Preventive Care Coverage

    July 4, 2025
    Leave A Reply Cancel Reply

    Don't Miss

    How the Next Financial Crisis Starts

    By insurancejournalnewsJuly 4, 20250

    The Financial Times offers various subscription plans to access quality journalism, including the FT Edit app and exclusive newsletters.

    Insurance Underwriter Title Resources Group Appoints Natasha Branch as VP of Education and Underwriting Counsel

    July 4, 2025

    Supreme Court Rejects Challenge to Obamacare Preventive Care Coverage

    July 4, 2025

    Pioneers in Autonomous Vehicle Insurance Poised for Growth as Industry Evolves

    July 4, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Our Picks

    How the Next Financial Crisis Starts

    July 4, 2025

    Insurance Underwriter Title Resources Group Appoints Natasha Branch as VP of Education and Underwriting Counsel

    July 4, 2025

    Supreme Court Rejects Challenge to Obamacare Preventive Care Coverage

    July 4, 2025

    Pioneers in Autonomous Vehicle Insurance Poised for Growth as Industry Evolves

    July 4, 2025

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    Demo
    New

    Montana Eyes Workers’ Comp for First Responders with PTSD

    February 24, 2025

    Best Home and Auto Insurance Deals for Veterans

    February 24, 2025

    Pennsylvania Insurance Department: Protecting Consumers and Regulating the Insurance Market

    February 24, 2025
    Categories
    • Business Insurance (1,819)
    • Identity Protection (522)
    • Life Insurance (1,725)
    • New (5,587)
    • Pets Insurance (517)
    • Property Insurance (985)
    • Vevehicle Insurance (463)

    How the Next Financial Crisis Starts

    By insurancejournalnewsJuly 4, 20250
    Facebook X (Twitter) Instagram Pinterest
    © 2025 Insurance Journal News. Designed by Insurance Journal New.

    Type above and press Enter to search. Press Esc to cancel.