Insurance CEOs with Proven Records Seek Reappointment... "Prioritizing Organizational Stability" (Comprehensive)

'Stability' Over 'Change'

Kim Jeongnam, DB Insurance Vice Chairman
Expected to Succeed in 5th Term

Kim Yongbeom, Meritz Fire & Marine Vice Chairman
3rd Term Amid Record-Breaking Performance

[Asia Economy Reporter Oh Hyung-gil] Most CEOs of major insurance companies have virtually confirmed their reappointment, signaling that the personnel shake-up is ending as a ‘mere ripple in a teacup.’

In a low-growth environment further worsened by the impact of COVID-19 on business conditions, companies appear to have chosen stability over change. Given the bleak outlook for the insurance industry this year, it is expected that management will accelerate efforts toward digital and non-face-to-face innovation and enhancing consumer trust.

According to the insurance industry on the 5th, DB Insurance held a board meeting on the same day to approve the agenda for the reappointment of Vice Chairman Kim Jeong-nam as CEO. Industry insiders predict that Kim will successfully secure a ‘fifth consecutive term’ without major surprises.

Both business performance and external evaluations are positive. Kim joined DB Group over 40 years ago in 1979 as an employee at Korea Automobile Insurance, the predecessor of DB Insurance. Since his appointment as CEO of DB Insurance in 2010, he has become one of the longest-serving CEOs in the insurance industry.

DB Insurance was the second insurer last year to surpass 10 million customers. Compared to 5.3 million customers at the time Kim took office, the number has grown 1.9 times in 10 years. During the same period, sales increased from 6 trillion won to 13.7 trillion won, a 2.3-fold growth, and total assets grew from 10 trillion won to 43.7 trillion won, a 4.3-fold increase.

Last year also saw strong performance. Net income on a consolidated basis rose 47.5% year-on-year to 563.7 billion won. Operating profit increased by 43.2% to 732.9 billion won, and sales grew 7.7% to 20.11 trillion won. In November last year, Kim was awarded the Iron Tower Industrial Medal, the first in the insurance industry, at the National Quality Management Convention.

Kim Yong-beom, CEO of Meritz Fire & Marine Insurance, has effectively secured a ‘third consecutive term.’ Meritz Fire & Marine Insurance’s board resolved at a meeting held the day before to reappoint Kim as CEO. If finalized at the regular shareholders’ meeting on the 26th, Kim will lead the company for another three years until March 2024.

Born in 1963, Kim is a Samsung alumnus who worked at Samsung Fire & Marine Insurance, Samsung Asset Management, and Samsung Securities. He has spearheaded innovation at Meritz Fire & Marine Insurance. Through swift strategies such as partnerships with General Agencies (GA) and the introduction of entrepreneur-style branch stores, the company has maintained rapid growth. Last year, net income surpassed 400 billion won for the first time.

Choi Young-moo, CEO of Samsung Fire & Marine Insurance; Yeo Seung-joo, CEO of Hanwha Life Insurance; and Byun Jae-sang, CEO of Mirae Asset Life Insurance have also effectively secured reappointments. Samsung Fire & Marine Insurance will approve Choi’s reappointment at the shareholders’ meeting on the 19th, and Hanwha Life Insurance plans to reappoint CEO Yeo at the shareholders’ meeting on the 15th.

Hanwha Life Insurance and Mirae Asset Life Insurance are aiming for management stability as they prepare to launch subsidiary-type sales specialist companies (GA) on the 8th and in April, respectively.

Won Jong-gyu, CEO of Korean Reinsurance Company, is also expected to be reappointed as a ‘second-generation manager.’ Foreign insurers Dongyang Life Insurance and ABL Life Insurance are also expected to reappoint CEOs Luo Jianlong and Xi Ye Zhiqiang without major changes.

Some insurers are preparing for CEO changes. Heungkuk Life Insurance plans to officially appoint Park Chun-won as the new CEO, succeeding Cho Byung-ik, at this month’s shareholders’ meeting. Park, born in 1962, previously served as CEO of Samsung Fire & Marine Insurance and Samsung Fire & Marine Insurance Claims Service, and has worked at Heungkuk Fire & Marine Insurance and Heungkuk Life Insurance since 2016.