Shinhan Financial acquires Lotte Insurance for $518 mil.

Shinhan Financial Group Inc., a major banking group, has decided to take over a midsize non-life insurer for 693 billion won ($518 million) to diversify its business portfolio, industry sources said Tuesday.

Shinhan Financial’s board of directors approved the acquisition of a 77.04 percent stake in Lotte Insurance, from private equity firm JKL Partners, and then the banking group plans to buy the remaining 22.96 percent depending on regulatory approval.