Dongyang Life Insurance concluded its 17-year history as a publicly traded company on August 31, exiting the stock market. Now a wholly owned subsidiary of Woori Financial Group, Dongyang Life is accelerating preparations for its merger with ABL Life Insurance and the selection of a new company name.
According to the financial sector on August 31, Dongyang Life and ABL Life are conducting a survey for all employees regarding the new company name until September 4.
The candidates for the name are 'Woori Life Insurance' and 'Woori Insurance.' Employees can also propose alternative names. Both candidates include 'Woori,' indicating that the merged company is likely to adopt the Woori Financial Group brand.
This survey is the first follow-up action since Woori Financial officially announced the merger plans for both companies on August 18. Woori Financial aims to launch the merged life insurance company in the second half of 2027, targeting total assets of 55 trillion won.
As of the end of the first half of this year, Dongyang Life's total assets were approximately 35.3 trillion won, while ABL Life's were about 19.2 trillion won. Combined, they total around 54.5 trillion won, placing them among the top five in the industry, following Samsung, Kyobo, Hanwha Life, and Shinhan Life.
The product lineup will also be enhanced. Dongyang Life has strengths in protection insurance, while ABL Life excels in savings insurance. Last year, when combining their premium income, the share of protection insurance was 51.3%, and savings insurance was 47.0%, indicating a balanced portfolio. There are also expectations for expanded sales channels utilizing Woori Bank's bancassurance customer base.
However, achieving profitability that matches their scale remains a challenge. The combined net profit for both companies in the first half of this year was 108.6 billion won, about 37% of Shinhan Life's net profit, which has a similar asset size. The costs incurred during the integration of organizational structures, IT systems, and sales channels will also be a variable affecting the merger's effectiveness.
With its delisting on August 31, Dongyang Life has relinquished its status as the first domestic life insurance company to enter the stock market in 2009, maintaining that status for nearly 17 years. This change follows the completion of a comprehensive stock exchange with Woori Financial on August 11, resulting in Woori Financial holding 100% of the shares.
Existing shareholders of Dongyang Life received 0.2521056 shares of Woori Financial common stock for each share they held. The transition to a wholly owned subsidiary has simplified the governance structure and decision-making process, laying the groundwork for the merger with ABL Life.
Woori Financial plans to reorganize the products and sales channels of both companies during the integration process and improve the solvency ratio (K-ICS) and contract service margin (CSM). They also aim to integrate sales and management systems using artificial intelligence (AI) and pursue entry into the long-term care business.
* This article has been translated by AI.
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