Samsung Life Insurance, South Korea’s largest life insurer, has partnered with state-run postal operator Korea Post to create a joint investment fund for overseas ventures.
The agreement for the investment fund, with an estimated value of KRW400 billion (US$33.6 million or SG$45.8 million) is in its preliminary stages, Yonhap News Agency reported. Samsung Life and Korea Post plan to invest in overseas blue-chip companies over the next 10 years.
The two companies also laid out plans to cooperate in various activities, such as diversifying their offshore investment portfolios, improving the profitability of their asset management businesses, fortifying their risk management, and joint development of insurance products, Samsung Life said.
Earlier this year, Samsung Life invested US$1 million in Savills Investment Management, the fund management arm of global real estate business Savills.
These moves are part of Samsung Life’s thrust to diversify its investment holdings, amid a trend of insurers globally making alternative investments to offset the low yield of traditional investments in developed markets.
Samsung Life plans to have non-traditional assets make up 15% of its investment mix by 2025. Non-traditional assets currently account for 10% of the company’s investment mix, according to a report by The Korea Herald. These assets include real estate, private equity and hedge funds.