Future Issuance of Subordinated Bonds Also Planned
Fubon Hyundai Life Insurance has decided to conduct a paid-in capital increase worth 392.5 billion KRW to strengthen its capital soundness.
On the 31st, Fubon Hyundai Life Insurance announced that it made this decision at a board meeting held the previous day. After the subscription schedule and necessary procedures by major shareholders, the capital increase is expected to be completed by the end of the third quarter.
This paid-in capital increase is part of a response considering financial market risks and strengthening capital soundness in accordance with changes in capital regulations. Specifically, it was decided based on Fubon Hyundai Life Insurance's management strategies and the interests of major shareholders, including ▲ product strategies for optimizing profit and risk ▲ sales strategies centered on Contractual Service Margin (CSM) ▲ capital management through Asset-Liability Management (ALM). Additionally, Fubon Hyundai Life Insurance plans to issue subordinated bonds in the future according to market conditions besides the paid-in capital increase.
Earlier, through a strategic meeting in January, Fubon Hyundai Life Insurance set a policy to expand CSM through efficiency improvement and sound management and to thoroughly respond to capital soundness strengthening due to regulatory changes such as the new International Financial Reporting Standards (IFRS 17) and the new solvency regime (K-ICS).
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