Shinhan Financial Group has agreed to buy a 77.04% stake in Lotte Non-Life Insurance from private equity firm JKL Partners for about ₩693.3bn, ending months of on-off negotiations.
Why Shinhan Financial Group is buying Lotte Non-Life Insurance (77.04% stake)
Shinhan's existing non-life arm, Shinhan EZ General Insurance, is small, and the group has been seeking to strengthen its non-banking earnings. Lotte Non-Life has about 3.34 million customers and a contractual service margin of about ₩2.2tn at the end of June 2026. Shinhan plans to merge the two insurers and inject capital ahead of tighter K-ICS solvency rules taking effect in 2027.
Deal terms and financing
Shinhan will pay ₩693,338,632,300 in cash for 239,082,287 shares, according to its filing, with the final amount to be confirmed at closing. It intends to acquire the remaining 22.96% after approvals. The purchase will be funded from group capital without external borrowing.
Regulatory approvals and timing
Completion is subject to financial regulatory approvals; the closing date has not been set.
Market context
Shinhan and JKL held exclusive talks until July 2026, which broke down over price, before reaching a deal after JKL struggled to find other buyers. JKL acquired the insurer from Lotte Group in 2019. Shinhan shares fell nearly 5% on 14 October.
