Hanwha Life acquires 75% stake in US securities firm

Hanwha Life, a leading Korean insurance company, said Wednesday it has signed a stock purchase agreement to acquire a 75 percent stake in US securities firm Velocity Clearing.

Established in 2003, New York-based Velocity Clearing is an IT-based securities firm primarily serving institutional investors. It offers various financial services, from clearing and settlement to securities lending and prime brokerage. Recently, it has expanded its unlisted US stock brokerage services to global clients, including those in Korea.

Hanwha Life plans to create diverse investment opportunities in the US, leveraging its overseas subsidiaries and global financial network, while maximizing synergies with its international financial operations.

Additionally, the company aims to expand its business by utilizing its strengths in alternative investments to provide various investment opportunities to individual clients, alongside its global institutional investor activities.

“The latest acquisition catalyzes to extend of the capabilities of Korea’s leading insurance company into the global market and will lay the foundation for long-term growth,” said Hanwha Life Vice Chairman and CEO Yeo Seung-joo.

Velocity Clearing CEO Michael Logan said, "We have been paying close attention to Hanwha Life's proactive and pioneering global efforts. We look forward to new inflows of investment capital into the US, building on the successful models from Korea and the Asian market."

The acquisition process will be finalized soon, with regulatory approvals pending in both countries.

Hanwha Life has sought to expand its customer base in growth markets such as Southeast Asia while capitalizing on superior investment opportunities and talent acquisition in the US.

In April, Hanwha Life became the first Korean insurance company to enter overseas banking by acquiring a 40 percent stake in Nobu Bank in Indonesia.