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Report: Anbang Insurance agrees to acquire Allianz's South Korean life unit

China's AnbangInsurance Group Co. on April 6 signed an agreement with to acquire the entire stake in the German insurer's South Koreaninsurance and asset management businesses, South Korea's The Chosun Ilbo reported the same day, citing investment banking industrysources.

Anbang Insurance will seek regulatory approval from South Korea'sFinancial Services Commission to acquire AllianzLife Insurance Co. Ltd. Details on the value of the transaction werenot disclosed.

Allianz Life Insurance has recently faced challenges due to SouthKorea's low interest rates and intense competition from domestic peers. The companyposted a net loss in 2015 of 87.4 billion won, compared to net income of 6.4 billionwon in the year prior, according to the company's latest annual report. Its risk-based capital ratio fell to 183.58%as of the end of 2015 from 199.49% at the end of 2014.

Anbang Insurance also previously acquired a majority stake in South Korea's in 2015.If the Chinese insurance group acquires Allianz Life Insurance, it will have thefifth-largest assets in South Korea's insurance industry at 40 trillion won, includingTONGYANG's 23.125 trillion won worth of assets as of Jan. 31, the publication reported.

As of April 5, US$1 wasequivalent to 1,159.76 South Korean won.