Hanwha Life acquires U.S. securities firm

President Kim Dong-won

Hanwha Life Insurance Co. became the first South Korean insurance company to acquire a U.S. securities firm. This acquisition is seen as a significant step for Hanwha Life in its journey to becoming a global comprehensive financial group.

Hanwha Life said on Wednesday that it signed a stock purchase agreement (SPA) to acquire a 75 percent stake in Velocity Clearing LLC, a U.S.-based securities firm.

This marks the first time a Korean insurer has acquired a U.S. securities firm, and the deal is reportedly valued in the mid-200 billion won ($143 million) range.

“The latest acquisition will serve as a stepping stone to expand the capabilities of a leading Korean insurance company into the global market,” Hanwha Life Vice Chairman Yeo Seung-joo said.

Velocity Clearing CEO Michael Logan also said that “We look forward to building on our successful model in Korea and Asia and bringing new investment capital to the United States.”

Founded in New York in 2003, Velocity is an IT-driven securities firm whose primary clientele consists of institutional investors. It provides financial services such as clearing and settlement, securities lending, and prime brokerage.

The company recently expanded its U.S. listed stock brokerage business to cater to international clients, including those in Korea. The latest acquisition is expected to allow Hanwha Life to gain direct access to Velocity’s infrastructure and network.

Hanwha Life said that it aims to leverage its overseas subsidiaries and global financial network to explore investment opportunities in the United States while enhancing synergies with overseas financial businesses, as it has secured a foothold in the United States, the world’s largest financial market.

Hanwha Life’s global expansion efforts have gained momentum under President Kim Dong-won, who took on the role of Chief Global Officer (CGO) in 2023. Kim, the second son of Hanwha Group Chairman Kim Seung-youn, has been driving Hanwha Life Financial Services’ globalization strategy.

Hanwha Life is focused on strengthening its position as a leading life insurer in Korea by expanding its sales of protection-type products. The company’s annual premium equivalent (APE), a key indicator of insurance sales growth, rose 35 percent year-on-year to 977 billion won in the third quarter of 2024, driven by an increase in sales of protection-focused products.

In Southeast Asia, it made a significant move in April by investing in Bank Nationalnobu Tbk PT, known as Nobu Bank, in Indonesia, becoming the first Korean insurer to venture into the overseas banking sector.

Prior to this, the company acquired Lippo General Insurance Tbk PT, an Indonesian general insurance company, in March 2022.

The acquisition of Velocity will be finalized once regulatory approvals are obtained from the relevant authorities in both countries.