Seoul — MG Non-Life Insurance’s third attempt to secure a new owner has once again faltered due to persistent concerns about its financial health, according to the Korea Herald.
The final bidding process, held on Friday, saw no participants, as reported by Samjong KPMG, the lead advisor overseeing the sale. Notably, potential bidders such as the local private equity firm Dayli Partners and the U.S.-based JC Flowers, who had shown initial interest, did not participate in the final round.
Current regulations stipulate that only entities involved in the preliminary bidding are eligible for the final phase. MG Non-Life Insurance, ranked as South Korea’s 10th-largest non-life insurer, is predominantly owned by JC Partners, which holds a 95.5% stake in the company.
MG Non-Life Insurance was declared insolvent by the Financial Services Commission in April 2022, leading to its takeover by the state-run Korea Deposit Insurance Corporation (KDIC) for a public auction. Previous preliminary bidding attempts conducted by the KDIC last year also failed to attract serious buyers, primarily due to concerns about the insurer’s deteriorating financial condition.
The insurer’s solvency ratio, a critical measure of financial health, was reported at approximately 43% in the first quarter of this year, a significant drop from 77% at the end of the previous year. Financial authorities recommend maintaining a solvency ratio above 150% for sound capital stability.
With the latest sale attempt failing, the KDIC is now contemplating the possibility of liquidating MG Non-Life Insurance. The company requires approximately $718.6 million to stabilize its operations post-acquisition.
