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[Apha Biz=(Chicago) Reporter Paul Lee] Eight insurance companies, including NH Nonghyup Financial and Taekwang Group insurance affiliates, invested about 400 billion won in UK power plant construction projects, but lost more than half of their investment due to delayed construction and operation of power plants.
According to the insurance industry on the 2nd, eight insurance companies that recently invested in the "NH-Amundi Europe Development General Private Equity Special Asset Investment Trust No. 1" fund created by NH Amundi Asset Management and Hana Securities in 2017 treated 40 to 60 percent of their principal as valuation losses.
Eight insurance companies have invested in the fund, including NH Life Insurance, Non-life Insurance, Heungkuk Life Insurance and Fire, Samsung Fire & Marine Insurance, Mirae Asset Life Insurance, Lotte Insurance and DGB Life Insurance. They invested about 400 billion won in the form of 'Mezzanine'.
These insurers invested heavily in the MGT project six years ago when the construction of the power plant began. This is because Samsung C&T was able to expect a high annual return of 6% from 2020, while risks were reduced as it participated in construction. However, the construction of the power plant was delayed due to the new coronavirus infection (COVID-19) and dust explosions and fire accidents occurred during construction in 2021.
As a result, the operator in charge of the project is filing a compensation suit against a consortium of construction companies, including Samsung C&T, in connection with the suspension and delay of construction, while seeking to invest additional funds for the operation of the power plant.
NH Amundi Management, which created the fund, recently asked eight insurance companies for an additional 27.6 billion won in funds and decided to pay all of them by the 28th of last month, the deadline. Insurance companies reportedly injected additional funds, judging that much of the investment could be recovered if the power plant operates normally.
An official from an insurance company that participated in the investment said, "We understand that about half of the principal has been lost," adding, "We expect to recover the losses if the power plant operates normally in the future."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
