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From left: Hanwha Life President and Chief Global Officer Kim Dong-won, Hanwha Life Vice Chair and CEO Yeo Seung-joo, Lippo Group MPC CEO Adrian Sherman and Lippo Group CEO John Riady hold a signing ceremony for a stock purchase agreement in Jakarta, Indonesia, in May. (Hanwha Life) |
As insurance companies grapple with finding new growth drivers, Hanwha Life has shifted its focus overseas, exploring new markets and sectors while expanding partnerships.
A key milestone has been reached in Vietnam, where Hanwha Life’s local subsidiary achieved its first cumulative profit since entering the market in 2008. This marks the first such accomplishment among fully owned overseas subsidiaries of a Korean insurer.
Building on this momentum, Hanwha Life aims to become the fifth-largest insurer in Vietnam and reach an annual profit of 100 billion won ($71.52 million) by 2030.
To do this, the company is concentrating on developing products that cater to the unique needs of Vietnamese consumers, especially in the rapidly growing digital finance sector. Vietnam, a nation with 30 percent of its population under the age of 30, also boasts a mobile phone penetration rate of 149 percent.
Hanwha Life is also expanding its presence in Indonesia, a key hub for Southeast Asian operations. Since launching in October 2013, the company’s Indonesian subsidiary has shown steady growth in both size and quality, achieving annual surpluses for three consecutive years from 2019 to 2021. With half of Indonesia's population aged between 18 and 39, Hanwha leverages its digital mobile expertise to offer customized insurance products tailored specifically for this young demographic.
The company's expansion in Indonesia was further boosted through a strategic partnership with Lippo Group, the country’s sixth-largest conglomerate with businesses spanning finance, real estate and retail. In March 2023, Hanwha Life, alongside Hanwha General Insurance, acquired Lippo General Insurance, and in April, it purchased a 40 percent stake in another Lippo Group subsidiary, Nobu Bank.
Entrance into Indonesia's banking sector was the first such investment by a Korean insurer. It represented a key step in Hanwha Life's strategy to establish itself as a global financial powerhouse, with Indonesia serving as its regional base for expansion in Southeast Asia.
In November, Hanwha Life pushed its global boundaries further by acquiring a 75 percent stake in New York-based securities brokerage Velocity Clearing. Through the acquisition, the insurance company aimed to strengthen its long-term profitability by creating diverse investment opportunities in the US, while expanding synergies with its overseas operations. In addition, Hanwha Life plans to leverage its expertise as a global institutional investor to offer alternative investment opportunities -- traditionally reserved for institutional investors -- to individual clients.
Hanwha Life has also demonstrated a stronger commitment to social responsibility. Leveraging its corporate assets as a comprehensive financial company, it implemented social contribution initiatives devoted to nurturing fintech talents in Vietnam, supporting the establishment of a dedicated department and hub at a local university.
In Indonesia, the Korean insurer has focused on improving welfare for women and vulnerable children. Notably, the insurer recently established a "Digital Family Center" to support local women and children, primarily offering online counseling services through video chats. The center also includes facilities such as a studio and a multipurpose community space. Through the center, Hanwha Life aims to enhance the welfare of Jakarta residents and expand digital infrastructure to provide broader support to people across the country.
