ORIX launches fund to invest in Korean life insurance

The fund has attracted nine investors including National Pension Service and The Korea Teachers Pension to invest in Mirae Asset Life Insurance.

South Korea’s National Pension Service (NPS) and The Korea Teachers Pension are among the nine investors expected to commit to a KRW300 billion (€195 million; $278 million) fund launched by Japanese financial conglomerate ORIX Corporation to invest in Mirae Asset Life Insurance.

According to a statement, the fund will be established together with Korean company LTI Investment. ORIX will participate as an investor as well as manager to the fund.

A Reuters report stated that Mirae will push back plans for an initial public offering until June 2012 as it decided to offer KRW400 billion worth of preferred shares to private equity funds.

“Our success in drawing investment interest from longer-term value investors such as NPS boosts our corporate value,” an anonymous Mirae official was quoted as saying in the report. “At the same time, [the preferred stock offering] helps us raise the funds necessary to diversify our businesses, which in turn will help us get an attractive IPO pricing.”

Established in 1988, Mirae Asset Life Insurance currently ranks fifth in the Korean life insurance industry on a total asset basis, the statement noted. It aims to further expand its business and strengthen the creditworthiness of the company with the capital injection.

In May, NPS was part of a consortium led by Mirae Asset Private Equity and sporting goods group Fila Korea to acquire golfing brand Titleist for $1.23 billion.

Mirae Asset Private Equity is the private equity arm of Mirae Asset Financial Group, which is the parent company of Mirae Asset Life Insurance.