MG Non-Life Insurance Faces Looming Liquidation
SEOUL, March 13 (Yonhap) – MG Non-Life Insurance Co., a financially struggling South Korean insurer, is facing potential liquidation after a prospective buyer announced the termination of a takeover deal on Thursday.
Meritz Financial Group stated earlier in the day that it had withdrawn its status as the preferred bidder for the non-life insurer. The decision was attributed to disagreements with the labor union regarding job security.
Meritz Non-Life Insurance Co., a subsidiary of the group, was initially selected as the preferred bidder for MG Non-Life Insurance in December. MG Non-Life Insurance has been on the market since April 2022, when it was designated as a financially weak company by the financial authorities. The company has seen four earlier attempts to sell the insurer fail.
The Financial Supervisory Service (FSS), South Korea’s financial watchdog, has indicated that the insurer’s financial condition continues to deteriorate. The FSS stated that the situation must be handled in accordance with established principles and laws.
The Korea Deposit Insurance Corp. (KDIC), which has been attempting to sell the insurer, has stated that it will consider all available options, including liquidation, should the Meritz Financial Group abandon its takeover bid.
MG Non-Life Insurance currently serves approximately 1.24 million policyholders.
