#South Korea #Seoul #Hanwha Life #U.S. Market #Velocity Clearing

Hanwha Life's Expansion into North America

Introduction
Hanwha Life, renowned as South Korea's first life insurance provider, has made a landmark decision by acquiring a 75% stake in Velocity Clearing, LLC, a U.S.-based financial services firm. This acquisition, announced on July 30, marks Hanwha Life's ambitious entry into the North American capital markets, highlighting the company’s intent to strengthen its global presence beyond traditional insurance offerings.

Strategic Move in the Financial Landscape
The acquisition is not just significant; it is a bold strategic maneuver aimed at redefining Hanwha Life's operations in an ever-evolving financial landscape. By securing a foothold in Velocity Clearing, Hanwha Life positions itself in the heart of the global capital markets, enabling it to enhance profitability through local partnerships and provide a wider range of financial products to its customers around the globe. This initiative underscores Hanwha Life's commitment to diversifying its services and becoming a formidable player within the U.S. financial sector.

Performance Insights of Velocity Clearing
Velocity Clearing itself is a dynamic firm that specializes in post-trade services, including clearing and settlement, and as of the end of 2024, it boasts approximately $1.2 billion in assets. With a compound annual growth rate (CAGR) of 25% over the last three years, the firm has demonstrated robust business performance and stability in what can be a volatile market. This promising financial trajectory further solidifies the rationale behind Hanwha Life's investment, hinting at a fruitful partnership as both companies leverage each other's strengths to drive growth.

Building Synergies and Future Aspirations
In collaboration with current leadership at Velocity, Hanwha Life aims to ensure operational stability during this transitional phase. The integration seeks to foster strategic synergies between Hanwha Life and its U.S. asset management affiliate, Hanwha Asset Management (USA) Ltd., alongside the Hanwha AI Center located in San Francisco. By merging financial know-how with advanced artificial intelligence capabilities, Hanwha Life is preparing to bolster its competitive edge in a saturated U.S. market.

A representative from Hanwha Life remarked, "This transaction not only signifies a landmark achievement for Korean finance but also establishes a foothold in critical financial markets. Our future endeavors will emphasize our global business growth, leveraging advancements in digital financial technologies."

Voices from Velocity Clearing Leadership
Michael Logan, the CEO of Velocity Clearing, expressed optimism regarding the future, stating, "The synergy with Hanwha Life’s global vision will help us accelerate our growth while enhancing opportunities for our clients. We are thrilled about the potential benefits this partnership holds."

Brian Schaeffer, the president of Velocity Clearing, further added, "This partnership is fundamentally driven by our clients' needs, enabling us to expand both our product offerings and geographical reach."

Lee Millstein, Chairman of Global Real Estate for Cerberus, noted, "We are proud to support Velocity during this growth phase and believe Hanwha Life is in an excellent position to maintain the momentum into its upcoming chapter."

About Hanwha Life
Founded in 1946, Hanwha Life has paved the way for the life insurance sector in Korea. Holding total consolidated assets of approximately USD 108.9 billion as of the end of 2024, the company is not only a leader in its field but also seeks to transition into a globally recognized financial group. Through strategic international expansion and regional adaptations, Hanwha Life aspires to build a sustainable and trustworthy global financial brand dedicated to comprehensive financial solutions.

About Velocity Clearing
Velocity Clearing is a technology-centric, self-clearing broker/dealer firm, offering execution services, clearing, and custody. It caters to both retail and institutional clients, including brokers, hedge funds, and proprietary trading firms, throughout the U.S. and beyond. Registered with the SEC and a member of the FINRA and SIPC, it stands poised for continued success as part of Hanwha Life’s ambitious vision.

Conclusion
The acquisition of Velocity Clearing by Hanwha Life signifies a transformative moment, not just for the company, but for the broader financial landscape. It heralds a new era of growth, innovation, and opportunity for both entities, setting the stage for sustained success in the North American capital markets.