UPDATE 3-Samsung Life prices $4.4 bln IPO near top of range

* Prices $4.4 bln IPO near top of range

* More than 10 times subscribed on strong foreign demand

* Solid performance of rival offerings helps sentiment

* Values Samsung at 22 trln won, 6th-largest firm in Korea

* Korea Life up 15 pct, Dai-ichi up 11 pct from IPO prices (Updates with final pricing)

By Lee Chang-ho and Rhee So-eui

SEOUL, April 23 (Reuters) - Samsung Life priced South Korea's biggest IPO, and Asia's second-largest so far this year, near the top of the range on Friday to raise $4.4 billion, the latest Asian insurer to draw keen investor interest.

The initial public offering by Samsung Life Insurance Co Ltd (032830.KS) follows recent issues by Korea Life (088350.KS) and Japan's Dai-ichi Life Insurance (8750.T), which have performed well since their debuts.

Samsung Life, the country's biggest insurer, priced its offer for 44.4 million shares at 110,000 won each, near the top of the 90,000-115,000 won range, to raise 4.9 trillion won ($4.41 billion).

"Strong international interest brought the momentum. It was double-digit oversubscription," said a source close to the deal.

Before Samsung closed its book at 0600 GMT, fund managers and sources had expected the offering to price around the mid-point of the range, or slightly above.

"I have to say the final pricing is not that attractive, given there's not much upside potential," said one fund manager. "But this is a very big issue, and you can't ignore it."

The manager said investors probably wouldn't lose money on shares bought at that price, but it didn't leave as much scope for making a profit.

Samsung Life enjoys a long-standing leadership in the local life insurance market, with around a 27 percent market share, but competition has increased in recent years.

A newly opening corporate pension market offers new opportunities for insurers and other financial firms, as regulatory changes unlock massive retirement savings. But this will also stoke competition further.

"Even someone with a pessimistic view on the life insurance market has to buy Samsung Life as it will become a key part of the index and merits passive weighting," said another fund manager.

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For IPO FACTBOXES: [ID:nTOE62U02Z] [ID:nSGE62G03X]

For NEWSMAKER on Samsung Life CEO: [ID:nTOE63F04K]

For Graphic on Korean life insurers' market shares:

here

For Graphic on Asia's top IPOs for 2010

here

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ATTACHING VALUE

At 110,000 won, the IPO values Samsung Life at around 1.3 times its embedded value -- a measure commonly used to gauge the value of insurance companies that includes the present value of future profits from long-term insurance contracts.

By comparison, Dai-ichi Life priced its $11 billion IPO, the world's largest since Visa Inc's (V.N) offering two years ago, at 56 percent of its embedded value last month. [ID:nTOE62M06P]

Shares in South Korean insurers outperformed as investors eagerly awaited the Samsung Life IPO.

"Insurers were left out in the recent rally, when banking issues traded strongly, and investors are cherry-picking relatively cheaper ones," said Cho Yong-hyun, market strategist at Hana Daetoo Securities.

Shares in second-ranked Korea Life jumped nearly 6 percent to a record 9,630 won on Friday before closing 3.5 percent higher. The stock is up 15 percent from its IPO level, while Dai-ichi has gained 11 percent since its float.

"Dai-ichi shares have gained even in the fully mature Japanese life market, and Chinese insurers trade at over 3 times their embedded value. So these justify Samsung Life's pricing as the Korean market is less mature than Japan," said the second fund manager. "The Dai-ichi Life performance is helping the mood."

The offer by Samsung Life, whose top shareholder is Lee Kun-hee, the country's richest man and reinstated chairman of affiliate Samsung Electronics Co Ltd (005930.KS), represents 22 percent of its total outstanding stock and values the insurer at around 22 trillion won -- South Korea's sixth-biggest stock.

Samsung Life has a 7.5 percent stake in Samsung Electronics, worth around $8 billion and is not raising any funds from the IPO.

Selling shareholders are creditors of Samsung's failed auto unit, Samsung Motors, CJ CheilJedang (097950.KS) and Shinsegae (004170.KS).

Goldman Sachs (GS.N) is global coordinator for the IPO, while Korea Investment & Securities is handling the domestic offering. Bookrunners include BofA Merrill Lynch (BAC.N), Morgan Stanley (MS.N) and Shinhan Investment Corp. ($1=1107.6 Won) (Additional reporting by Jungyoun Park and Miyoung Kim; Editing by Chris Lewis and Ian Geoghegan)