Seoul: Financially troubled MG Non-Life Insurance Co. may be put back on the selling block after the country's financial regulator and the company's labor union tentatively agreed on the matter, industry sources said.
According to Yonhap News Agency, in May this year, the Financial Services Commission announced its decision to liquidate MG Non-Life Insurance. The plan was to transfer its policy contracts to five non-life insurers via a "bridge insurance company."
MG Non-Life Insurance has previously been listed for sale after being designated as a financially weak company by the financial watchdog in April 2022. Despite this, four rounds of bids to sell the insurer have failed to materialize.
Meritz Financial Group, which was once the preferred bidder for the non-life insurer, withdrew its interest in March this year. The decision was attributed to differences with MG Non-Life Insurance's labor union regarding job security.
As of the end of March this year, MG Non-Life Insurance held 1.51 million policy contracts, with 90 percent related to illness and damage. The company has approximately 1.24 million policyholders.