Korea Investment Holdings, Hanwha Life Insurance, and Heungkuk Life Insurance submitted final bids for KDB Life Insurance on Friday, injecting fresh momentum into Korea Development Bank's seventh attempt to divest the insurer.

According to financial industry sources, the three companies tendered their final offers before the 3 p.m. deadline.

Notably absent from the final round was Samsung Life Insurance, which had been widely regarded as a frontrunner. Kyobo Life Insurance, which had taken part in the preliminary bidding, also declined to submit a final offer.

The sale marks KDB's seventh effort to find a buyer for KDB Life. The state-run lender has attempted to offload the insurer six times since 2014, though none of the prior endeavors culminated in a transaction. KDB Life has struggled with weak profitability and capital adequacy, issues that have repeatedly complicated valuation negotiations with prospective buyers.

The advancement of three bidders to the final stage has fueled optimism that a deal may finally materialize. For the bidders, acquiring KDB Life would expand their life insurance footprints in South Korea's competitive and consolidating insurance market, where regulators have pressed firms to strengthen capital buffers under the Korean Insurance Capital Standard that took full effect in 2023.

A pivotal factor, however, remains the scale of any additional capital injection from KDB. Such a move could influence both the valuation of KDB Life and the terms ultimately proposed by the bidders. Previous sale attempts have foundered in part over disagreements on how much financial support KDB would provide to shore up the insurer's balance sheet before a handover.

KDB is anticipated to name a preferred bidder as early as this month.

Source: Korea Herald