China`s Anbang Insurance Group will acquire Allianz Life Insurance Korea Co., a life insurance unit of Germany-based financial services giant Allianz Group, after taking over Tongyang Life Insurance Co. last year. According to financial circles on Wednesday, Anbang Insurance signed a stock purchase agreement (SPA) with the German insurance giant and its Korean branch.

Anbang Insurance Group will buy full 100 percent stake in the Korean life insurance unit, reportedly offering about 300 billion on ($260 million). It will complete acquisition of 11th biggest life-insurer in Korea upon winning final endorsement from the Financial Services Commission (FSC).

The German group has been trying to sell the Korean unit with assets worth 16.65 trillion won as of the end of last year due to deteriorating performance. The company reported 87.3 billion won in net loss last year.

Anbang became the first Chinese capital to acquire a major Korean financial institute when it bought 63 percent stake in eighth largest Tongyang Life Insurance in February last year for 1.13 trillion won.

Anbang founded in 2004 expanded fast over the last decade through mergers and acquisitions, ascending to the fifth largest in China and within the top 10 in global rank. Its chairman, Wu Xiaohui, is married to the grand-daughter of China’s deceased but still revered leader Deng Xiaoping.

The bold and fast rising Chinese insurer would likely exercise greater influence in the Korean market with two insurers under its arm. The combined assets of Allianz Life Insurance Korea and Tongyang Life Insurance would amount to 39.22 trillion won as of late last year, fifth largest in the industry following Samsung Life Insurance Co., Hanwha Life Insurance Co., Kyobo Life Insurance Co. and Nonghyup Life Insurance Co.

By Park Joon-hyung

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