KYOBO AXA Investment Managers → Kyobo Asset Management: Launch “Just Around the Corner” [fn Market Watch]

[Financial News] The “AXA” name attached to KYOBO AXA Investment Managers for 18 years will disappear completely next month. KYOBO AXA Investment Managers, which became a wholly owned subsidiary of Kyobo Life Insurance, is expected to approve a name-change proposal at its shareholders’ meeting on Sept. 22 and complete the registration of the change in early October. The new name is likely to be Kyobo Asset Management.
According to investment banking industry sources on the 6th, KYOBO AXA Investment Managers will change its name through an amendment to its articles of incorporation at the shareholders’ meeting on Sept. 22. The registration is expected to be completed by Oct. 2 at the latest.
Last month, Kyobo Life Insurance acquired the 50% stake held by BNP Paribas Asset Management Holdings for 107.5 billion won, making KYOBO AXA Investment Managers a wholly owned subsidiary. This came 18 years after Kyobo Life Insurance and France’s AXA Group launched the company as a 50-50 joint venture in 2008. Frédéric Bellmann, the representative director from BNP Paribas, also stepped down, leaving the company under the sole leadership of representative director Cho Hwi-seong. KYOBO AXA Investment Managers currently has around 49 trillion won in assets under management and is strong in bond management and the Ministry of Economy and Finance’s pension fund investment pool. By contrast, its ETF net assets are less than 300 billion won, giving it a relatively limited presence. Following its conversion into a wholly owned subsidiary, the company is expected to expand its product lineup into retirement pensions, target-date funds, ETFs and alternative investments.
The name change is also linked to Kyobo Life Insurance’s plan to transition into a financial holding company. After securing a 50% plus one share stake in SBI Savings Bank for approximately 900 billion won, Kyobo Life Insurance is also considering acquiring AXA General Insurance. The market estimates the value of AXA General Insurance at around 200 billion to 300 billion won.
In asset management, the company is removing “AXA” while Kyobo Life Insurance is considering buying a general insurer back from the AXA Group. Kyobo Life Insurance acquired AXA General Insurance in 2001 and sold it to the AXA Group for 90.5 billion won in 2007. If the deal goes through, the insurer will return to Kyobo ownership after about 20 years.
However, capital management will be crucial for additional mergers and acquisitions. Kyobo Life Insurance’s K-ICS ratio fell to 211.39% in the first quarter of this year from 222.60% at the end of last year. Kyobo Life Insurance is also seeking to relaunch its initial public offering in an effort to raise capital and resolve issues involving financial investors.
An investment banking industry official said, “The name change is significant not merely as a change of signage, but because it means that decision-making and business strategies will be reorganized around Kyobo.” The official added, “The key question is whether the asset manager can establish itself as the group’s asset-management hub during the transition to a financial holding company.”
[email protected] Kang Gu-gwi Reporter