22 Oct 2001
Prudential enters Korean life insurance market with acquisition of YoungPoong Life
Prudential plc (“Prudential”) and Korea Zinc Company LTD announced today that they have signed a sale and purchase agreement for Prudential to acquire 100 per cent of YoungPoong Life, a multi-distribution based Korean life insurance company. The purchase price is W37 billion (eq. £19.7m/ US$28.7m)
Established in 1989, YoungPoong Life is based in Seoul and has branches in a further two locations in Korea. It had total assets as at 30 September 2001 of W107.1 billion (£57.2m/ US$82.4m). It offers a range of products including term, savings and protection. Distribution is multi-channel and uses a mix of general agents, exclusive agents and a telemarketing operation.
Commenting on the acquisition, Mark Tucker, Chief Executive of Prudential Corporation Asia (PCA) said: “Korea is a major Asian retail financial services market and we have been actively reviewing potential entry opportunities. We are delighted to have found in YoungPoong Life a financially and operationally sound platform for us to build a significant business here”.
This acquisition continues Prudential's well-managed and focussed expansion strategy in Asia. Gary Bennett, Managing Director of PCA's North Asian life operations added: "This acquisition of a Korean life player with excellent growth potential is consistent with our strategy here in Asia. YoungPoong Life enables us to leverage our regional distribution strengths and product initiatives straight away and accelerate the next exciting stage of YoungPoong Life’s development."
Mr Choi, Chairman of Korea Zinc (parent of YoungPoong Life) commented: “We are very happy to have found in Prudential a company with the financial strength, history and global experience to grow YoungPoong Life into one of the leading life companies in Korea.”
With the acquisition of YoungPoong Life, Prudential now has life operations in 12 countries across Asia combined with a rapidly expanding mutual fund presence in the region. Prudential was first established in Asia in 1923 and is currently the UK's largest life insurance company in Asia. Prudential Singapore was awarded the title "Asia's Life Insurance Company of the Year" at the Asia Insurance Industry Awards 2000.
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Notes to Editors:
More about Prudential
Established in London in 1848, Prudential is one of the UK's leading life insurers with £168 billion of funds under management worldwide as at 30 June 2001. M&G, a leading UK mutual fund business and Scottish Amicable a leading product provider for the IFA market are part of the Group. Prudential is also the majority shareholder of egg: |, the fastest growing retail financial services internet company in Europe. Internationally, in addition to Prudential Asia, the Group also owns Jackson National Life in the USA, and is building a new European business.
Alongside its wholly owned operations in Asia, Prudential has formed successful joint venture partnerships and strategic alliances with some of the region's leading financial institutions including CITIC (China International Trust and Investment Corporation), India's ICICI, Bank of China and Standard Chartered Bank.
About Korea Zinc Company LTD (parent of YoungPoong Life)
Established in 1974, Korea Zinc Company LTD is focused in the business of metals manufacturing. Korea Zinc is a quoted on the KOSDAQ and has subsidiary operations in Australia and the USA, Sun Metal Ltd and Big River Zinc Inc.
Prudential has been advised by Lazard.