Hana Financial Insurance Units Raise Capital Through Bond Issuances

Hana Life and Hana Insurance, insurance subsidiaries of Hana Financial Group, are raising capital through subordinated bond issuances to manage their solvency ratios. On May 23, Hana Life's board approved a 150 billion won subordinated bond issuance, while Hana Insurance completed a 100 billion won issuance at 6.20% interest on April 29. Both insurers are strengthening capital amid declining K-ICS (Korean Insurance Capital Standard) ratios, with Hana Life's Q1 pre-transitional K-ICS ratio falling 2.6 percentage points to 131.4% and Hana Insurance's ratio dropping 9.4 percentage points to 146.1% compared to year-end levels.

Hana Life Approves 150 Billion Won Subordinated Bond Issuance

Hana Life held a board meeting on May 23 and decided to issue 150 billion won in subordinated bonds. Specific conditions including issuance interest rate and schedule have not yet been determined. The capital raising is interpreted as a measure to manage the K-ICS ratio, a key financial soundness indicator for insurers.

Hana Life's pre-transitional K-ICS ratio at the end of Q1 stood at 131.4%, down 2.6 percentage points from year-end. On a post-transitional basis, the ratio fell 19.3 percentage points to 155.1%. Hana Life previously issued 180 billion won in subordinated bonds in March 2023.

Hana Insurance Issues 100 Billion Won Bonds at 6.20% Interest

Hana Insurance issued 100 billion won in subordinated bonds at a 6.20% interest rate on April 29. The company's K-ICS ratio as of Q1 end recorded 146.1%, a decline of 9.4 percentage points compared to year-end.

Hana Insurance also strengthened its capital through a 200 billion won paid-in capital increase from Hana Financial in October last year.

FAQ

What subordinated bond issuance did Hana Life approve on May 23?

Hana Life's board approved a 150 billion won subordinated bond issuance on May 23. The specific issuance interest rate and schedule have not yet been determined.

Why are Hana Financial's insurance subsidiaries raising capital?

Both Hana Life and Hana Insurance are raising capital to manage their K-ICS ratios, which measure insurer financial soundness. Hana Life's Q1 pre-transitional K-ICS ratio fell 2.6 percentage points to 131.4%, while Hana Insurance's ratio dropped 9.4 percentage points to 146.1% compared to year-end levels.

What interest rate did Hana Insurance pay on its subordinated bond issuance?

Hana Insurance issued 100 billion won in subordinated bonds at a 6.20% interest rate on April 29.