KOREAN RE EYEING STAKES IN OTHER INSURERS

Korean Re is considering investments of between 10% and 20% stakes in a number of primary insurers in China, Vietnam and the Middle East, according to CEO Park Jong-won. He said that the reinsurer was aiming for an annual growth rate of 25% for overseas operations up to 2010, bringing international business to 20% of total revenues. Mr Park admitted that the reinsurer was not currently in talks with any insurers at the moment, but said that some companies were being looked at “with interest”. Mr Park also said that Korean Re was interested in forming a joint venture with locally based companies in target markets. “The reinsurance market is becoming a soft market ... so we have to go abroad, make new products and expand into the fraternal insurance market”, Mr Park told Reuters . He said that Korean Re had no immediate plans to raise more capital, but that it would be willing to do so if it were needed. Korean Re has said in the past that it is looking to transform itself into a financial services company, via the purchase of a securities broker and a primary life assurer.