Hana Financial Group is reviewing a capital increase for Hana Insurance. Following an investment of 300 billion won earlier this year, the group appears poised to provide further financial support.
According to financial sector sources on the 4th, Hana Financial is considering additional capital injection into Hana Insurance. Previously, in June, Hana Financial acquired 100 billion won worth of new capital securities issued by Hana Insurance, and in July participated in a shareholder rights offering (paid-in capital increase) by Hana Insurance, injecting 200 billion won.
The background for considering additional capital injection lies in Hana Insurance's insufficient capital adequacy. As of the end of June, Hana Insurance's solvency margin ratio (K-ICS) stood at 152.13%, exceeding the financial authorities' recommended threshold of 130%. However, the basic capital K-ICS ratio to be implemented next year is 22.43%, falling short of the financial authorities' recommended level of 50%. While insurance companies have previously issued capital-type securities to comply with this regulatory ratio, the introduction of regulations that evaluate only pure basic capital has made solvency assessments more stringent.
Given concerns over insufficient capital adequacy, analysis suggests that support from the parent company is inevitable. A financial sector official stated, "Since Hana Insurance's K-ICS ratio is low, conducting a capital increase to maintain it is a natural step."
Hana Financial officials stated that neither the scale nor timing of the capital injection into Hana Insurance has been decided.
in FINANCE
