France’s Axa Group announced that it has reached an agreement with Kyobo Life to acquire its 75 percent stake in Kyobo Auto, a major South Korean direct automobile insurer.
The announcement did not state the purchase price of the acquisition, which is also subject to local regulatory approvals.
Kyobo has “more than 800,000 clients, revenues of KRW 346 billion [€278 million – $370 million] and a market share above 30 percent,” said Axa’s bulletin. “In just 5 years, direct distributors have captured 12 percent of South Korea’s individual motor market, the second largest in Asia, and one that has experienced very strong and sustained growth for the last 10 years.”
“The acquisition of Kyobo Auto is an excellent opportunity to enter as the leader in the South Korean direct property & casualty market, one of the fastest growing and most developed general insurance markets in Asia, and to significantly increase the size of Axa’s P&C operations in the region,” indicated Philippe Donnet, head of Axa’s Asia Pacific region.
“Kyobo Auto has a very strong competitive position, based on the combination of a strong focus on customer satisfaction, successful marketing and competitive offers,” he continued. “We are very pleased to welcome Kyobo Auto teams and we intend to leverage the efficient platform they have built to further develop Axa’s P&C operations in Asia”.
When the acquisition is completed, Axa’s direct P/C operations will have more than 2 clients.