MG Non-Life Insurance Co., a financially struggling company, is facing the prospect of liquidation after a prospective buyer withdrew from a takeover agreement. The announcement came on Thursday, with Meritz Financial Group citing disagreements with the labor union regarding job security as the reason for the decision.
Meritz Financial Group had previously been selected as the preferred bidder for MG Non-Life Insurance in December. The group’s unit, Meritz Non-Life Insurance Co., was involved in the bid. This follows MG Non-Life Insurance being designated as a financially weak company by the financial watchdog in April 2022.
Since being put up for sale, the insurer has seen four rounds of bidding fail to result in a sale. The Financial Supervisory Service, South Korea’s financial watchdog, has indicated that the insurer’s financial condition continues to deteriorate and that the matter must be addressed according to established principles and laws.
The Korea Deposit Insurance Co., which has been tasked with selling the insurer, stated that it would evaluate all potential options, including liquidation, if Meritz Financial Group were to abandon its takeover proposal. MG Non-Life Insurance serves approximately 1.24 million policyholders.
