Samsung Life to issue up to $1.5 billion in overseas hybrid capital securities

Samsung Life will issue up to $1.5 billion of overseas hybrid capital securities with a 30-year maturity, the company disclosed on October 8. Outlets put the amount at about 2 trillion won; Hankook Ilbo gave it as about 2.0151 trillion won. Yonhap and Seoul Economic Daily reported that the board approved the issue on October 7. Yonhap and Hankook Ilbo said it is Samsung Life's first overseas hybrid issue. Seoul Economic Daily described it as the company's first bond issue of any kind. [ 1 , 2 , 3 , 4 , 5 ]

Samsung Life said the decision is meant to strengthen overseas investment while keeping its capital sound and maintaining shareholder returns such as dividends. Yonhap and Hankook Ilbo reported that the company is looking at entering overseas markets, including by buying stakes in overseas insurers. Seoul Economic Daily reported that the insurers under review include the US insurer Principal Financial Group (PFG). "We plan to keep making investments ahead of time to secure the company's mid- to long-term growth engines," a Samsung Life official said. [ 1 , 2 , 4 , 5 ]

The company said the size of the issue reflects what can realistically be raised in global markets. The interest rate will be set at pricing. Hankook Ilbo reported that it will be the US five-year Treasury yield plus a spread. Maeil Business reported that the securities will be placed privately overseas, that the company will seek a listing on the Singapore Exchange, that the securities can be redeemed early after five years if certain conditions are met, and that the proceeds will be used as operating funds. Hankook Ilbo noted that long-dated hybrid securities count as capital for accounting purposes. [ 1 , 3 , 4 ]

Samsung Life plans to complete the issue this year. Before that, it will obtain bond ratings from international agencies and hold roadshows for overseas institutional investors. On October 8, Moody's rated the company Aa3 and Fitch rated it AA. Samsung Life said the Moody's rating matches Japan's Dai-ichi Life and Tokio Marine, and the Fitch rating matches Hong Kong's AIA. [ 1 , 2 , 3 , 4 , 5 ]

Maeil Business wrote that overseas expansion or large investments can increase an insurer's required capital and lower its K-ICS solvency ratio. It said issuing foreign-currency securities that count as capital in advance would ease that pressure. It reported that Samsung Life's K-ICS ratio was 208% at the end of June and its basic-capital K-ICS ratio was 177%. [ 3 ]

Among South Korean life insurers, Kyobo Life issued $500 million of overseas hybrid capital securities in 2022 and Hanwha Life issued $1 billion in 2025. Seoul Economic Daily reported that a full $1.5 billion issue would be the largest ever in the domestic insurance industry. [ 1 , 5 ]