Shinhan's Lotte Insurance deal faces profitability, capital hurdles

Shinhan Financial Group agreed to buy a 77.04 percent stake in Lotte Insurance from JKL Partners for 693.3 billion won on Tuesday. The deal would expand Shinhan’s non-life insurance business, but analysts warned that Lotte Insurance may require substantial capital before contributing meaningfully to earnings. Shinhan aims to raise annual profit from the business to at least 120 billion won within three years.

Lotte Insurance had 14 trillion won in assets and 3.34 million customers, and Shinhan plans to acquire its remaining shares after regulatory approval before pursuing a merger with Shinhan EZ General Insurance.

Lotte Insurance recorded an 18.5 billion won net loss in the first half after 78.5 billion won in investment losses outweighed 53.7 billion won in insurance service profit.

Lotte Insurance’s solvency ratio was 129.7 percent at the end of June, below the regulator’s recommended 130 percent threshold, while its basic K-ICS capital ratio was negative 5.4 percent.

Under a phased regulatory framework, insurers must raise their basic K-ICS ratios to at least 50 percent of required capital by 2035.

Shinhan shares fell 4.31 percent Wednesday after the acquisition announcement and another 0.84 percent Thursday.

Published Oct 15, 2026 3:41 pm KST

Lotte Insurance headquarters in central Seoul / Yonhap

Shinhan Financial Group is seeking to bolster its nonbank operations by acquiring Lotte Insurance, but analysts cautioned Thursday that a meaningful contribution to group earnings may take time, as the insurer could require substantial additional capital to strengthen its financial position.

Concerns over the cost of the deal weighed on Shinhan shares, which plunged 4.31 percent Wednesday following Tuesday’s announcement and fell a further 0.84 percent Thursday.

The group agreed Tuesday to purchase a 77.04 percent stake in Lotte Insurance from private equity firm JKL Partners for 693.3 billion won ($514.6 million). After securing regulatory approval, it plans to acquire the remaining shares and eventually merge the insurer with its existing subsidiary, Shinhan EZ General Insurance.

Lotte Insurance has 14 trillion won in assets and 3.34 million customers, giving Shinhan a substantially larger foothold in non-life insurance. The financial group aims to raise annual profit from the business to at least 120 billion won within three years.

But market analysts warned that the insurer’s weak earnings and deteriorating financial soundness could make that expansion costly.

Lotte Insurance swung to a net loss of 18.5 billion won in the first half as investment losses of 78.5 billion won outweighed an insurance service profit of 53.7 billion won.

Its solvency ratio, which measures an insurer’s financial ability to cover its liabilities and risks, stood at 129.7 percent at the end of June, below the regulator’s recommended threshold of 130 percent. Its basic capital ratio under the Korean Insurance Capital Standard (K-ICS) was even weaker at negative 5.4 percent.

The pressure is likely to grow as capital rules tighten. Under a phased regulatory framework, insurers must raise their basic capital K-ICS ratios to at least 50 percent of required capital by 2035. Lotte Insurance will need to strengthen its capital base substantially to meet the target, either by raising fresh capital or generating enough earnings to build up reserves.

“In a mature market already dominated by a handful of players, Shinhan is buying an insurer that, even if its turnaround goes to plan, may not be in a position to pay dividends through 2035,” said Jung Jun-sup, an analyst at NH Investment & Securities.

“The real test is whether Lotte Insurance can generate enough profit to justify the capital invested. The market will need to see a recovery in the insurer’s earnings and a meaningful improvement in Shinhan’s return on equity within the next two to three years to view the deal as a sound use of capital.”

Shinhan Financial acquires Lotte Insurance for $518 mil.

新韩金融集团周二同意以6933亿韩元的价格从JKL Partners手中收购乐天保险77.04%的股份。此举将拓展新韩的非寿险业务，但分析师警告称，乐天保险可能需要大量资金才能对公司盈利做出实质性贡献。新韩的目标是在三年内将该业务的年利润提升至至少1200亿韩元。

乐天保险拥有 14 万亿韩元的资产和 334 万客户，新韩计划在获得监管部门批准后收购其剩余股份，然后再与新韩 EZ 一般保险进行合并。

乐天保险上半年净亏损185亿韩元，其中投资亏损785亿韩元，超过保险服务利润537亿韩元。

截至 6 月底，乐天保险的偿付能力比率为 129.7%，低于监管机构建议的 130% 的门槛，而其基本 K-ICS 资本比率为负 5.4%。

根据分阶段监管框架，保险公司必须在 2035 年前将其基本 K-ICS 比率提高到所需资本的至少 50%。

收购消息公布后，新韩股价周三下跌 4.31%，周四又下跌 0.84%。

发布于2026年10月15日下午3:41（韩国标准时间）

乐天保险总部位于首尔市中心 / 韩联社

新韩金融集团正寻求通过收购乐天保险来加强其非银行业务，但分析师周四警告称，对集团盈利做出实质性贡献可能需要时间，因为这家保险公司可能需要大量额外资金来加强其财务状况。

交易成本的担忧令新韩股价承压，继周二宣布交易后，周三股价暴跌 4.31%，周四又进一步下跌 0.84%。

该集团周二同意以6933亿韩元（约合5.146亿美元）的价格从私募股权公司JKL Partners手中收购乐天保险77.04%的股份。在获得监管部门批准后，该集团计划收购剩余股份，并最终将乐天保险与其现有子公司新韩EZ通用保险合并。

乐天保险拥有14万亿韩元的资产和334万客户，这使得新韩集团在非寿险领域占据了更为重要的地位。该金融集团的目标是在三年内将该业务的年利润提升至至少1200亿韩元。

但市场分析师警告称，该保险公司疲软的盈利能力和不断恶化的财务状况可能会使这种扩张付出高昂代价。

乐天保险上半年净亏损185亿韩元，投资亏损785亿韩元超过了保险服务利润537亿韩元。

截至6月底，该公司偿付能力比率（衡量保险公司偿付负债和风险的财务能力）为129.7%，低于监管机构建议的130%的阈值。根据韩国保险资本标准（K-ICS），其基本资本充足率甚至更低，为-5.4%。

随着资本规则的收紧，压力可能会越来越大。根据分阶段的监管框架，保险公司必须在2035年前将其基本资本充足率（K-ICS比率）提高到至少达到所需资本的50%。乐天保险需要大幅增强其资本基础才能达到这一目标，这可以通过筹集新资本或创造足够的盈利来积累储备金来实现。

“在一个已经由少数几家公司主导的成熟市场中，新韩收购的这家保险公司，即使其扭亏为盈的计划得以实现，也可能无法在 2035 年之前支付股息，”NH 投资证券分析师郑俊燮表示。

“真正的考验在于乐天保险能否产生足够的利润来证明投资的合理性。市场需要看到乐天保险的盈利在未来两到三年内复苏，并且新韩保险的股本回报率显著提高，才能将这笔交易视为合理的资本运用。”

新韩金融以 5.18 亿美元收购乐天保险。