Woori Financial Group moves to merge Tongyang Life, ABL Life into W55tr insurer

Woori Financial Group has launched a full-scale push to merge its two life insurance subsidiaries, Tongyang Life Insurance and ABL Life Insurance, with the combined entity expected to debut in the second half of next year. The merged insurer would hold combined assets of 55 trillion won ($38.9 billion), placing it among the top five life insurers in South Korea. Woori Financial Group plans to develop the merged company into a flagship subsidiary.

Chairman Lim Jong-ryong will hold a group-wide CEO town hall meeting Wednesday to share the integration direction and vision with executives and team leaders from both insurers, the group said.

Woori Financial Group brought both insurers into its fold on July 1 last year and completed a full takeover of Tongyang Life Insurance through a comprehensive share swap on Aug. 11.

The group plans to complete the merger by the second half of next year, creating a large life insurer with 55 trillion won in total assets. The integration is designed to help the group respond proactively to a rapidly shifting insurance market while concentrating group-level resources to build the combined insurer into a core business unit. The merged life insurer is expected to compete for a top-five industry ranking against rivals including NH NongHyup Life Insurance and KB Life Insurance.

Woori Financial Group said it will focus on securing the merged insurer's capital adequacy — measured by the K-ICS ratio — in line with a new paradigm taking shape in the insurance market. The group intends to lead competition by building up contractual service margin, the primary source of future profit, on the strength of competitive products and sales capabilities.

To that end, the group plans to combine the strengths of both companies to maximize synergies. It envisions investing in AI to overhaul sales support and management processes, providing customers with a comprehensive safety net across all stages of life, and securing future growth engines — including elder-care services — to prepare for the full onset of a super-aged society.

The launch of a unified life insurer within Woori Financial Group is also expected to give fresh momentum to Chairman Lim's broader strategy of building a universal financial group. Since taking office, Lim has steadily expanded the group's non-banking portfolio through moves including the launch of Woori Investment Securities and the acquisition of Tongyang Life Insurance and ABL Life Insurance.

"The insurance industry is at a major inflection point, driven by demographic shifts such as rapid aging and tightening capital adequacy regulations and actuarial assumptions," a Woori Financial Group official said. "We expect this merger to mark a turning point for a significant leap forward in our insurance business and to drive balanced growth across the group's portfolio. We will build an insurer that delivers greater value to customers through differentiated experiences that combine AI-driven innovation with warm, human-centered financial services."