이 기사는 2022년 01월 03일 08:05 thebell 에 표출된 기사입니다.

MG Non-Life Insurance, controlled by private equity firm JC Partners, will raise 10.5 billion won ($8.8 million) from a Seoul-based investment firm through a capital increase.

The South Korean insurance company’s board of directors decided to issue 7,271,667 new common shares worth 10.5 billion won to Leaders Technology Investment on December 28, according to industry sources.

The decision came two months after the investment firm’s first 20 billion won investment in the ailing insurance company in October. Leaders Technology Investment raised the money via an issue of convertible bonds and then injected it into the company through JC Partners’ vehicle.

These rounds of capital injection are part of a management improvement plan submitted by JC Partners to the country’s financial authorities in October. The plan involves boosting the capital base of the insurer in phases to improve its risk-based capital (RBC) ratio.

MG Non-Life Insurance’s RBC ratio declined from 172.8% at the end of September 2020 to 97% at the end of June 2021. Insurance companies should maintain a RBC ratio of 100% or higher under Korean law, with the country’s financial watchdog recommending a higher threshold of 150%.


The company plans to raise an additional capital of 30 billion won from another external investor, which is unnamed and said to be in advanced talks with JC Partners, in the first quarter of 2022.

This will be followed by raising 60 billion won in acquisition financing and 30 billion won in subordinate debt, according to the management improvement plan. (Reporting by Gyoung-tae Kim)