Hanwha Life Expands into U.S. Market with Velocity Clearing Acquisition
In a significant strategic move, Korean insurer Hanwha Life has acquired a 75% stake in Velocity Clearing, a US-based financial services firm specializing in post-trade clearing and settlement. This transaction, completed in late July 2025, marks Hanwha Life as the first South Korean insurance company to acquire a US securities firm, signalling a shift beyond traditional insurance business into global financial services.
The partnership between Hanwha Life and Velocity Clearing is expected to result in powerful synergies. Michael Logan, CEO of Velocity Clearing, anticipates accelerated growth and new opportunities with Hanwha Life's support. Brian Schaeffer, president of Velocity Clearing, notes that the partnership is client-driven, enabling further product and geographic expansion.
The acquisition represents a key step for Korean finance to establish a presence in the US financial center. The transaction is expected to strengthen Hanwha Life's global business, providing a broader range of financial products to clients. Hanwha Life aims to leverage Velocity Clearing’s platform to enhance profitability.
Velocity Clearing reported approximately USD 1.2 billion in total assets at the end of 2024 and has achieved a compound annual revenue growth rate of 25% over the past three years. Its net income has also shown consistent growth, with continued profitability expected under Hanwha Life’s ownership.
Hanwha Life plans to maintain Velocity's existing management team to ensure operational continuity and build synergies with its US asset management affiliate, Hanwha Asset Management (USA), and the Hanwha AI Center in San Francisco. This combination of finance and technology is expected to drive further growth.
The impact on the Korean insurance industry includes setting a precedent for diversification into capital markets and financial services abroad, potentially encouraging other insurers to pursue similar expansions. Lee Millstein, Chairman of Global Real Estate for Cerberus, who supported Velocity Clearing through a period of growth, is proud to have been part of this transformation. Hanwha Life is well-positioned to build on the momentum in Velocity Clearing's next chapter.
In addition, Hanwha Life plans to leverage digital financial technologies and its global network for sustainable, long-term growth within the dynamic US capital markets. This acquisition positions Hanwha Life to diversify revenue sources, boost global competitiveness, and accelerate growth.
Hanwha Life's acquisition of a 75% stake in Velocity Clearing signifies an investment in global business expansion, shifting beyond traditional insurance into financial services. With the partnership, Hanwha Life aims to leverage Velocity's platform for profitable growth in the US capital markets, while also expanding its range of financial products and geographic reach.
