Hanwha Life acquires US securities firm Velocity

South Korea's Hanwha Life Insurance said on Wednesday it signed a stock purchase agreement (SPA) to acquire a 75% stake in Velocity Clearing LLC, a US-based securities firm.

This is the first time that the South Korean insurer bought US securities.

Founded in 2003 and headquartered in New York, Velocity provides financial services for institutional investors, including clearing, settlement, stock lending, and prime brokerage.

Recently, the firm has expanded its brokerage business for US stocks to foreign clients, including those in South Korea.

Hanwha Life said it aims to leverage its global network to explore investment opportunities in the US while enhancing synergies with overseas financial businesses.

The insurer also plans to expand its offerings of alternative investments to individual clients.

Hanwha Life has been ramping up its global operations.

Earlier this year, it became the first Korean insurer to enter international banking by investing in Indonesia’s Nobu Bank.

Hanwha Life focuses on market expansion in Southeast Asia, while it prioritizes capital market opportunities and talent acquisition in the US.

Write to Mi-Hyun Jo at [email protected]