Hanwha Life to acquire 75% stake in U.S. firm Velocity Clearing

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Hanwha Life to acquire 75% stake in U.S. firm Velocity Clearing

Published: 20 Nov. 2024, 16:31

SHIN HA-NEE
[email protected]

[HANWHA LIFE]

Hanwha Life signed a deal to acquire a majority stake in Velocity Clearing, a U.S. securities firm, the Korean insurer said Wednesday.

Upon the completion of the stock purchase agreement, which was signed on Tuesday, Hanwha Life will secure a 75 percent stake in Velocity. The value of the contract was not disclosed.

Hanwha Life, the first insurance company in Korea to acquire a U.S. securities firm, is seeking new opportunities to source and sell financial products in the U.S. market through Velocity.

The plan is to utilize the firm’s established local infrastructure and network to enhance long-term profitability and expand Hanwha's business portfolio globally. Moreover, it will offer its customers new investment opportunities in asset classes that have traditionally been accessible only to institutional investors.

The Korean firm will continue to work with the current management of the U.S. entity to ensure smooth operation.

Velocity, based in Hazlet, New Jersey, was founded in 2003 and currently provides a range of financial services including clearing, execution and securities lending.

“The latest acquisition will serve as a foundation for us to expand our capabilities as a leading insurer in Korea into the global market and to drive long-term profit,” said Hanwha Life CEO Yeo Seung-joo.

The deal will be finalized upon receiving approval from the regulatory authorities of both Korea and the United States.

Hanwha Life has been actively pursuing global expansion in pursuit of new growth opportunities outside the domestic market. In April, the company acquired a 40-percent stake in Nobu Bank, an Indonesian commercial bank.

BY SHIN HA-NEE [[email protected]]