Shinhan Financial Group Acquires BNPP Cardif Insurance...Completing the 'Comprehensive Financial Group'

BNP Paribas Group Acquires 95% Stake Worth Approximately 40 Billion KRW

[Asia Economy Reporter Kwangho Lee] Shinhan Financial Group is acquiring the foreign insurance company BNP Paribas Cardif General Insurance. By incorporating Cardif General Insurance as a subsidiary, Shinhan Financial, which previously did not have a non-life insurance company, will complete a portfolio befitting a comprehensive financial group.

According to financial sources on the 31st, Shinhan Financial held a board meeting on the 26th and approved the acquisition of Cardif General Insurance, and subsequently signed a share purchase agreement (SPA) with France's BNP Paribas Group on the 29th.

It is known that Shinhan Financial will acquire 95% of Cardif General Insurance shares held by BNP Paribas Group for around 40 billion KRW. The remaining shares are already held by Shinhan Life Insurance.

Cardif General Insurance was established in 2014 when BNP Paribas acquired Ergo Daum Direct General Insurance. Cardif General Insurance is a small non-life insurer mainly handling corporate insurance and specialty insurance.

Shinhan Financial is acquiring Cardif General Insurance to obtain a non-life insurance business license. Shinhan Financial currently does not have a non-life insurance company among its affiliates.

Currently, financial authorities no longer issue licenses due to intensified competition in the sector, making mergers and acquisitions (M&A) of non-life insurers the only option.

Shin Yong-byeong, Chairman of Shinhan Financial Group, has shown strong determination to acquire a non-life insurance company, considered the 'last puzzle' in the financial group's portfolio. Chairman Cho plans to incorporate Cardif General Insurance as the 18th subsidiary and develop it into a digitally specialized non-life insurer to complete the portfolio.

Shinhan Financial is expected to soon apply to financial authorities for approval to incorporate Cardif General Insurance as a subsidiary.