Hanwha Life, a leading life insurer from South Korea, has completed its acquisition of a 75% interest in Velocity Clearing LLC, a financial services provider based in New York.
The transaction, which concluded on July 30, involved the purchase of shares previously held by an affiliate of Cerberus Capital Management LP.
This development marks Hanwha Life as the first insurance company from Korea to acquire a US securities firm, reflecting a strategic shift toward broader participation in North American capital markets.
The acquisition is intended to serve as a foundation for Hanwha Life’s efforts to diversify its business portfolio and improve profitability by operating directly within the US financial sector.
The company has indicated that this move will enable it to deliver a wider range of financial products to a global client base.
Velocity Clearing specialises in post-trade services, including clearing and settlement functions.
At the close of 2024, the firm reported total assets of approximately US$1.2 billion and posted a compound annual revenue growth rate of 25% over the preceding three years.
Net income has also shown consistent increases, with expectations for continued profitability following the acquisition.
Hanwha Life has stated that it will retain the current management team at Velocity Clearing to maintain operational continuity.
The insurer also plans to explore synergies with its US asset management arm, Hanwha Asset Management (USA) Ltd, and the Hanwha AI Center in San Francisco.
The collaboration aims to integrate financial services with artificial intelligence capabilities, supporting Hanwha Life’s competitive strategy in the US market.
A Hanwha Life spokesperson described the acquisition as a step toward establishing a stronger presence in the US financial sector.
“This transaction represents a significant step for Korean finance to establish a presence in the key financial centre, the US capital markets. Moving forward, we will continue to strengthen our global business by leveraging digital financial technologies and our global network to ensure sustainable, long-term growth,” the spokesperson said.
Velocity Clearing CEO Michael Logan said the partnership is expected to support the firm’s expansion and create additional opportunities for clients.
“With Hanwha Life’s global vision and support, we expect to accelerate our growth and unlock new opportunities together for our clients. We’re excited about the powerful synergies ahead,” he said.
President Brian Schaeffer noted that the alliance is designed to address client needs and facilitate both product and geographic growth.
“This partnership with Hanwha Life is client driven, allowing Velocity Clearing to further accelerate its product and geographic expansion,” he said.
Cerberus’s chairman of global real estate, Lee Millstein, commented that the firm had supported Velocity Clearing during a period of expansion.
“We’re proud to have supported Velocity Clearing through an exciting period of growth, and Hanwha Life is well-positioned to build on that momentum in the company’s next chapter,” he said.
The completion of Hanwha Life’s acquisition coincides with an increase in US individual life insurance premiums.
According to LIMRA’s US Life Insurance Sales Survey, new annualised premium for individual life insurance rose 8% year over year to US$3.94 billion in the first quarter of 2025 (Q1 2025).
The number of policies sold increased by 1% compared to the same period in 2024.
LIMRA’s data, which covered 80% of the US life insurance market, also showed that total new annualised premium for 2024 reached US$16.2 billion, the fourth consecutive year of record highs, while policy counts remained flat.
