The headquarters of MG Non-life Insurance in Seoul / Yonhap
The country's financial regulator is working to find a feasible and desirable option for financially feeble MG Non-Life Insurance, its chief said Wednesday, as the insurer is facing a looming liquidation.
Earlier this month, Meritz Financial Group decided to drop its status of preferred bidder for the non-life insurer, citing differences with its labor union over job security.
After being designated as a financially weak company by the financial watchdog in April 2022, MG Non-Life Insurance has been on the selling block.
So far, four rounds of a sale bid to sell the insurer have fallen through.
Kim Byoung-hwan, the chief of the Financial Services Commission (FSC), said there are very limited options for the insurer.
"We are closely analyzing what is a feasible and desirable option (for MG Non-Life Insurance)," Kim said, adding the insurer will be dealt with in accordance with laws and principles.
According to the regulator, the insurer's financial footing has continued to weaken.
The insurer's capital adequacy ratio under the Korean Insurance Capital Standard (K-ICS), a barometer of a financial company's financial stability, stood at 43.4 percent at the end of September, far lower than the legally required threshold of 100 percent.
The Korea Deposit Insurance Co., which has been seeking to sell the insurer, said earlier it would consider all possible options, including liquidation, should Meritz Financial nix its takeover bid.
MG Non-Life Insurance has some 1.24 million policyholders. (Yonhap)
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