National insurance online

SEOUL:
ERGO, a primary coverage unit of measurement of Germany's Muenchen Re, have signed a trade to buy
a 65 per cent interest in South Korean online insurance company Daum Direct for about $102
million, two domestic stockholders said on Monday. ERGO will purchase the shares from
Internet portal Daum Communications Corporation and LIG Non-Life Insurance, as well as
50 billion South Korean won ($54.42 million) in new shares to be issued. Daum said in a
filing with the country's fiscal regulator that it will gain 40.9 billion won
from the sale, while LIG Non-Life said in a separate revelation that the value
of its interest sale to ERGO was 2.6 billion won. The concerted value of the deal
would be 93.5 billion South Korean won ($101.8 million), including the rights offering. "With
competition in the online car coverage marketplace accelerating, a large-scale
investment such as as an further working capital injection is necessary to spread out market
dominance," Daum said in a statement. "But that makes not suit into Daum's focus
on strengthening its mass media platform, so we have got decided to sell the stake." After the transaction, LIG's
stake in the online coverage house will fall to 25 per cent, with Daum's holding
dropping to 10 per cent. ERGO
becomes the 2nd foreign participant to come in South Korea's car coverage market,
after AXA bought 75 per cent of online car coverage house Kyobo Car in March
for an unrevealed sum. Auto
insurance do up slightly more than than one-third of the 25 trillion South Korean won non-life
insurance concern in South Korea, but companies have got not made significant
profits because of stiff competition. But moderation ordinances on insurance
products are expected to back up coverage companies, which can offer a broader
assortment of merchandises and other fiscal services. Shares of Daum were up 0.33
per cent at 90,000 South Korean South Korean won by 0155 GMT, and LIG Non-Life Insurance added 0.97 per
cent to 20,800 won.