Success in Vietnam just first step for Korea LifeKorea Life Insurance, one of the country’s most recognizable insurance brands, has notched up one achievement after another in the Vietnamese market.
Last year, in a first time for a Korean life insurance company, it recorded over $3 million in initial insurance fees in its first year of business in Vietnam. The Vietnamese local office pulled in 10,000 insurance contracts in its first year, successfully exceeding expectations for a foreign company on the Vietnamese market. The company now has five branches in Vietnam and 3,000 consultants - up from five at launch.
In December 2009, it signed an MOU with Zhijiang International Business Group of China to establish a joint life insurance company, targeted to debut by 2012. The company also operates branch offices and local subsidiaries in New York, Tokyo and London.
Korea Life Insurance became a member of the Hanwha Group in December 2002, and is a leading company of the group. In March 2010, a new chapter in its history began with a successful IPO.
The company has set three goals: securing the lead in the high-growth high-profit market, achieving the highest EV development rate in the industry and diversifying its profit.
As the leading life insurance company on the local life insurance market, Korea Life will improve the competitiveness of its main product. The company also has specific plans to increase the efficiency of its organization, establish a stable growth base, make strategic use of non-professional channels and reorganize its channel mixing strategy to dominate the market. It also plans to upgrade its asset management abilities and actively create synergy between its financial subsidiaries.
The company plans to manage itself based on embedded value, or EV. Management plans and evaluations will be made EV-centered, and fee efficiency and cost competitiveness will be improved. Lastly, Korea Life plans to secure a new growth force to prepare for stiff local competition. The company is seeking chances to enter the non-financial market business and expand overseas with its successful launch in Vietnam and China.
Korea Life Insurance aims to be the most beloved by customers in its industry, a company that provides value to shareholders and where employees most want to work.
The total assets of Korea Life Insurance were nearly 59 trillion won in fiscal year 2009. Insurance sales totaled 10.5 trillion won, and net profit was 418.3 billion won, placing it second among local life insurers.
Its solvency margin ratio is 299 percent and its asset soundness and capital optimum levels received the highest grade, AAA, from Nice Credit Rating and Korea Ratings in the insurance payable ability section in February.