A source familiar with the development told The Korea Economic Daily that Anbang has inked a memorandum of understanding to purchase 57.5% stake in Tong Yang Life from South Korean private equity firm Vogo Investment for nearly KRW1.1trn ($1bn).
Founded in 2005, Vogo first purchased a stake in Tong Yang Life in 2006, and started a process to divest the insurer in 2011.
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If the proposed transaction materializes, Anbang will be the first Chinese financial company to make forays into the Korean insurance market.
Tong Yang, which is one of the eighth-largest life firms in the country, had KRW19.7trn ($15.88bn) in assets as of the third quarter of 2014, and a 4.8% market share in terms of paid premiums.
In October 2014, Anbang acquired Belgium’s Fidea Assurances, marking the first time for a Chinese insurance company to purchase 100% ownership of a European insurance company.
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