Kyobo Life Insurance is pursuing the acquisition of AXA General Insurance as it looks to expand into the non-life insurance sector and strengthen its broader financial portfolio.
According to South Korean financial industry sources, Kyobo Life is currently selecting an advisor for the potential acquisition. Once an advisor is appointed, the insurer is expected to begin due diligence on AXA General Insurance as early as this month, reported Chosun Biz.
The potential transaction is reportedly valued at around KRW300bn ($220m).
A successful deal would see Kyobo Life regain control of AXA General Insurance nearly two decades after it sold the business to France's AXA Group.
AXA General Insurance traces its roots to Korea Automobile Insurance, which was established in 2000 as South Korea's first online insurer. Kyobo Life acquired the company in 2001 and operated it as Kyobo Automobile Insurance.
In 2007, Kyobo Life sold the insurer to AXA Group for KRW90.5bn. The company subsequently operated under the Kyobo AXA Automobile Insurance and Kyobo AXA General Insurance names before becoming AXA General Insurance.
Kyobo Life has been reviewing opportunities to enter the non-life insurance market as part of efforts to diversify its insurance business and build a comprehensive financial portfolio.