Hanwha Life, a prominent life insurance company from South Korea, has made a significant move by acquiring a 75% stake in Velocity Clearing LLC, a financial services firm located in New York. This deal, which was finalized on July 30, 2025, involved purchasing shares from an affiliate of Cerberus Capital Management LP.
This acquisition is noteworthy as it marks the first time a South Korean insurance company has taken over a U.S. securities firm. Hanwha Life aims to broaden its presence in North American capital markets, reflecting a strategic shift in its business approach. The company plans to use this acquisition as a stepping stone to diversify its portfolio and enhance profitability by engaging directly in the U.S. financial sector.
By acquiring Velocity Clearing, Hanwha Life hopes to offer a wider array of financial products to clients around the globe. Velocity Clearing specializes in post-trade services, such as clearing and settlement functions. At the end of 2024, the firm reported total assets of approximately $1.2 billion and had achieved a compound annual revenue growth rate of 25% over the past three years. The firm has also seen consistent increases in net income, with expectations for continued profitability after the acquisition.
Hanwha Life has committed to keeping Velocity Clearing’s current management team in place to ensure a smooth transition. Additionally, the company plans to explore synergies with its U.S. asset management arm, Hanwha Asset Management (USA) Ltd, and the Hanwha AI Center in San Francisco. This collaboration aims to integrate financial services with artificial intelligence, enhancing Hanwha Life’s competitive edge in the U.S. market.
Executives from both companies have expressed optimism about the partnership. A Hanwha Life spokesperson described the acquisition as a crucial step for Korean finance to establish a foothold in the U.S. capital markets. Velocity Clearing’s CEO, Michael Logan, echoed this sentiment, stating that the partnership would support the firm’s expansion and create new opportunities for clients.
The acquisition also comes at a time when the U.S. life insurance market is experiencing growth. According to recent reports, individual life insurance premiums in the U.S. rose by 8% year over year in the first quarter of 2025, reaching $3.94 billion. This growth trend could provide a favorable environment for Hanwha Life as it seeks to strengthen its position in the U.S. financial landscape.