First Korean Insurer to Enter US Securities Market Directly
Collaboration with Americas Branch and AI Center
Strengthening Competitiveness Through Global Financial Synergy in the Americas
On July 31, Hanwha Life announced that it had completed the process of acquiring a 75% stake in the US securities firm Velocity Clearing on July 30 (local time), marking the beginning of its strategic expansion into the North American capital markets beyond its insurance-centered portfolio.
This acquisition of Velocity represents the first case of a domestic insurance company entering the US securities market, which is at the heart of the global capital markets. Through this, Hanwha Life has established a platform to enhance profitability via a local US financial company and to provide high-quality global financial products to global clients.
Based in New York, Velocity is a specialized securities firm with the capability to directly handle post-trade processes, including clearing and settlement, where funds and assets are actually exchanged. As of the end of last year, the company held total assets of approximately $1.2 billion (about KRW 1.67 trillion). It has maintained strong growth, recording a compound annual growth rate (CAGR) of 25% in revenue over the past three years (2022?2024).
Hanwha Life plans to pursue early business stabilization through collaboration with the existing Velocity management team. The company also intends to foster synergy by working together with Hanwha Asset Management's Americas branch and the Hanwha AI Center (HAC), integrating finance and technology.
A Hanwha Life official stated, "It is highly significant that Hanwha Life has secured an opportunity to demonstrate its capabilities as a Korean financial company in the core US market," adding, "Going forward, we will continue to strengthen our business capabilities and interregional connectivity based on digital financial technology and our global network to ensure stable growth."
Michael Logan, CEO of Velocity, commented, "With Hanwha Life's global vision and network, I expect Velocity's growth to accelerate even further," and added, "We will continue to maximize synergy between the two companies."
Meanwhile, Hanwha Life is expanding its global financial ecosystem through differentiated strategies tailored to the financial environments of each region. In Southeast Asia, the company is enhancing its retail financial competitiveness, while in the Americas, it is advancing platform-based investment capabilities and launching global business initiatives centered on strategic bases. Looking ahead, Hanwha Life plans to combine digital technology and global partnerships to become a brand that provides comprehensive financial solutions to global clients.
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