[Edaily Reporter Kim Se-yeon ] Shinhan Financial Group is acquiring LotteNon-LifeInsurance (LotteNon-LifeInsurance), the seventh-largest player in the general insurance industry. The group plans to secure LotteNon-LifeInsurance’s customer and sales base and integrate it with its existing Shinhan EZ General Insurance (Shinhan EZ General) to strengthen the competitiveness of its general insurance business, which has been relatively weak.

Shinhan Financial announced on the 13th that it had signed a share purchase agreement (SPA) to acquire a 77.04% stake in Lotte General Insurance, held by private equity firm JKL Partners, for 693.3 billion won.
Shinhan Financial Group plans to acquire the remaining 22.96% stake after completing the necessary procedures, including obtaining approval from financial authorities. It then intends to proceed with the merger of Lotte General Insurance and Shinhan EZ General Insurance and inject additional capital to improve financial soundness.
LotteNon-LifeInsurance is a mid-sized general insurance company with approximately 3.34 million customers, primarily focused on long-term protection insurance. As of the end of the first half of this year, its contract service margin (CSM) stood at approximately 2.2 trillion won. CSM is an indicator that evaluates the present value of expected future profits from policies held by an insurer.
Shinhan Financial Group plans to expand its insurance business by combining Lotte General Insurance’s operational base with the group’s customer base and digital channels. Through the merger with Shinhan EZ General Insurance, the group will reduce duplicate costs and restructure its business operations with a focus on profitability.
Following the acquisition as a wholly-owned subsidiary, the group intends to improve its capital structure to prepare for the Basic Capital Solvency Ratio (K-ICS) regulations set to take effect next year. The group plans to secure the acquisition funds by reallocating internal capital without resorting to external financing.
Shinhan Financial Group stated that during the integration process, it will maintain existing insurance policies and customer service and will strive to ensure job security for field personnel, including employees and insurance agents.
A Shinhan Financial Group official said, “LotteNon-LifeInsurance is a company with extensive experience in the insurance business, a strong customer base, and solid sales capabilities,” adding, “By combining these strengths with the Group’s capital and risk management capabilities, we will create new growth momentum for the insurance business.”