Seoul based (re)insurance company, Korea Re, has opened a new subsidiary branch called Korean Reinsurance Switzerland AG in Zurich, as part of its expansion strategy in the European market, licensed to start business from 1 June 2019.
The new establishment will be led by Markus A, Eugster, who has spent over two decades in the financial services industry, mostly in reinsurance and banking and was previously CEO and global head of reinsurance at Sompo Conpius Re in Zurich.
The move will allow South Korea’s sole reinsurer to strengthen its presence in Europe. Korean Re established the business as a Swiss company with USD $60mn of capital, and then acquired 100% of its shares, making it a wholly owned subsidiary.
Korea Re already operates in Europe from a base at Lloyd’s of London, however the new hub could also be a way for the company to ensure continuity for clients after the uncertainty of Brexit.
Korean Re has historically been the only reinsurer operating in the South Korean market, but the Financial Supervisory Commission said last year that it had decided to authorise new reinsurers in order to stimulate competition.