Hanwha Life, South Korea’s first life insurance company, completed the acquisition of a 75% stake in US-based global financial services firm Velocity Clearing. The majority of the stake acquired was owned by an affiliate of Cerberus Capital Management. The deal marks a move into the North American capital markets — beyond Hanwha Life’s traditional insurance business. Financial details were not disclosed in a company statement.
The transaction marks Hanwha Life as the first Korean insurance company to acquire a US securities firm, and establishes a platform for the insurer to enhance its profitability through a local US financial company and to provide global financial products to global clients.
Velocity Clearing provides post trade services, including clearing and settlement. As of the end of 2024, the firm held approximately $1.2 billion in total assets, with a compound annual growth rate (CAGR) of 25% in revenue over the last three years (2022~2024). The net income is also increasing steadily, with continued profitability expected after the acquisition.
Working closely with Velocity Clearing under its existing leadership, the company aims to ensure early operational stability while building strategic synergies with its U.S. asset management affiliate, Hanwha Asset Management (USA) Ltd. and the Hanwha AI Center (HAC), located in San Francisco. This collaboration will combine financial expertise with the advanced AI capabilities to strengthen Hanwha Life’s competitive edge in the U.S. market.
“This transaction represents a significant step for Korean finance to establish a presence in the key financial center, 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,” said a Hanwha Life representative in a statement.
Michael Logan, CEO of Velocity Clearing, said in a statement: “With Hanwha Life’s global vision and support, we expect to accelerate our growth and unlock new opportunities together for our clients.”
Brian Schaeffer, president of Velocity Clearing, said in a statement: “This partnership with Hanwha Life is client driven, allowing Velocity Clearing to further accelerate its product and geographic expansion.”
Lee Millstein, chair of Global Real Estate for Cerberus, said in a statement: “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.”