The press conference is prepared by ING Life, which is scheduled to be listed on Korea Composite Stock Price Index(KOSPI), to present its information and disclose its future goals and plans for listing, and ING Life CEO Jung Mun-guk, vice president Park Ik-jin, and executive director Lee Sung-tae attended.
ING Life CEO Jung Mun-guk, who organized the event, said, "ING Life has maintained management that pursues an optimal balance between profitability, growth, efficiency, capital and risk under the vision of 'reliable financial partner for customers' dreams'." And, "This listing will contribute to make ING Life's position in insurance industry stand out and will become a momentum that further differentiates our values."
According to the announcement, ING Life will carry out demand forecasting expects on April 6-21, after submitting registration statement on March 23, and will be listed on the KOSPI market in May after making a subscription on the April 27th and 28th. The number of public offering stocks is 33,500,000, which is equivalent to 40.9% of the total stock, and they will be proceeded with 100% secondary distribution.
The bid price for public offerings is 31,500 won to 40,000 won (par value 1,000 won) and the offer price is 1,552 billion won to 1,330 billion won. The main organizers for this listing are Samsung Securities Co., Morgan Stanley Securities International, Seoul branch, and the co-organizers are Mirae Asset Daewoo, KB Securities, and Goldman Sachs, Seoul branch.
Founded in 1987 and celebrated 30th anniversary this year, ING Life has exceeded its total assets of 30 trillion won in 2016, and its risk-based capital (RBC ratio) is recording 319% as of the end of 2016. Especially, as it presents asset & liability management (ALM) strategy, it has financial solidity that is optimized for changes in the regulatory environment. For example, if the financial authorities tighten the RBC, RBC ratio will be increased.
In addition, it has maintained excellent profitability through continuous product innovation, strengthened FC channel and system innovation for future growth. ING Life generates profits from all three profit sources of life insurance companies: death rate, working expenses, and interest rate. In 2016, its net profit is 6.8%(excluding one-off factors such as accidental death benefit payment for suicide), which is above the average of listed life insurance companies’ average of 2.8%.
Based on this, ING Life has made a lot of effort to create shareholder profit by raising the dividend payout ratio from 45% in 2014 to 58% in 2016, increased by 13%.
In aspect of external growth trends, ING Life showed an average annual growth rate of 26% over the past three years based on ‘Annual Premium Equivalent (APE)’. Moreover, the company’s main channel, FC Channel, is leading the company’s business growth through virtuous cycle, including improving product mix and FC productivity, increasing monthly incomes per operating FC, and improving the retention rate and persistency rate.
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