Kyobo Life Insurance, South Korea's third largest life insurer by total assets, has announced it would seek an initial public offering by the second half of next year to raise capital.
The volume of capital to be raised has yet to be determined, reported Pulse News citing a company statement.
The IPO decision follows a July board meeting where discussion centred on ways to increase the capital buffer to prepare for tougher regulatory standards governing the financial strength of insurers.
Starting in 2022, Korea is poised to implement the new International Financial Reporting Standards, IFRS17, and Korean Insurance Capital Standard, or K-ICS in short, in the place of the risk-based capital ratio. Kyobo Life is estimated to need at least several trillion won in capital under the new accounting standards. The RBC ratio of Kyobo Life stood at 292% in September, above a recommended minimum level at 150% by Korean financial authorities.
Kyobo Life was founded in 1958 as Korea’s first insurance company.