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FWD Group

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FWD Group
Company typePrivate
IndustryFinancial services (insurance)
Founded2013 in Hong Kong
FounderRichard Li
Headquarters
Hong Kong
Areas served
Hong Kong, Macau, Thailand, Malaysia, Indonesia, the Philippines, Vietnam, Japan, Singapore, Cambodia[1]
Key people
  • Huynh Thanh Phong (CEO)
  • Frederick Ma (Chairman)
  • Simeon Preston (COO)
  • Sid Sankaran (CFO)[2]
  • Binayak Dutta (Managing Director)[3]
AUMUS$63 billion (2021)[1]
OwnerApollo Global Management, Canada Pension Plan Investment Board, Huatai Securities, Li Ka Shing Foundation, Metro Pacific Investments and Pacific Century Group[1]
Number of employees
6,100 (2021[1])
ParentPacific Century Group
Websitefwd.com

FWD Group is an insurance company based in Hong Kong.[4][5][6][7] Founded in 2013[8] as the insurance arm of Pacific Century Group, the company provides life and medical insurance, general insurance and employee benefits[9] in Asia.[10] As of 2021, the FWD managed approximately US$63 billion in assets.[11] The company filed for its IPO in 2022 and refiled its Main Board listing application with the Hong Kong Stock Exchange on March 13, 2023.[12][13]

The company celebrated its 10th anniversary in 2023 and currently operates in Hong Kong, Japan, Macau, Singapore, Thailand, Philippines, Indonesia, Vietnam, Malaysia, and Cambodia.[1]

History

2010s

FWD Financial Centre in 2013 in Hong Kong.

Richard Li of Pacific Century Group formed FWD Group in 2013[8] after purchasing ING Group’s insurance and pension units in Hong Kong, Macau and Thailand for US$2.1 billion.[5][10] Swiss Re bought a 12.3% stake in FWD Group in 2013[14] for $425 million.[15] Huynh Thanh Phong joined as CEO in 2013.[11] The company then expanded into the Philippines in 2014 and Indonesia in 2015. Expanding into three more countries in 2016,[4][8] that year FWD Group acquired Shenton Insurance in Singapore,[9] also purchasing a unit from Great Eastern Holdings Ltd. in Vietnam[8] for $35 million.[16] In late 2016, FWD agreed to buy AIG's Fuji Life Insurance Co. in Japan.[8] By April 2017, FWD had[17] $24.4 billion in assets under management[4] and sponsored the Clockenflap music festival.[18] In 2018 FWD agreed to purchase an Indonesian life insurance venture, PT Commonwealth Life, from the Commonwealth Bank of Australia for $300 million.[19] When the acquisition completed in 2020, PT Commonwealth Life was rebranded PT FWD Life Indonesia.[20] FWD Group also purchased HSBC’s stake in a Malaysian insurance joint venture in 2018,[19] acquiring 49% of HSBC Amanah Takaful (Malaysia),[16] now renamed FWD Takaful (Malaysia).[21]

In June 2019, FWD Group purchased MetLife's business in Hong Kong[7][14] reportedly for around $400 million.[10] That month, FWD Group agreed to buy SCB Life Assurance, the life insurance business of Thailand’s Siam Commercial Bank, for $3 billion, "reflecting the largest insurance deal in Southeast Asia in terms of value."[7][22] FWD also launched its Malaysian takaful (Islamic insurance) market at the end of July 2019.[23] By August 2019, FWD had applied for a license to enter a joint venture in China. Having spent $6 billion on mergers and acquisitions since its founding,[6] in November 2019, FWD agreed to acquire Vietcombank-Cardif Life Insurance, a joint venture between Vietcombank and BNP Paribas Cardif,[24] for $400 million.[16] FWD announced in December 2019 it would exit its group medical insurance business in Singapore by December 2020.[25][26]

2020s

FWD Tower in Jakarta, Indonesia.

In March 2020, Prudential acquired a bancassurance partnership in Thailand from FWD Group for $753 million.[27] The same month, FWD Vietnam Life became the largest life insurer in Vietnam by charter capital.[28] In June 2020, FWD Group purchased a minority stake in the life insurance arm of PT Bank Rakyat Indonesia (BRI), PT Asuransi BRI Life, for a reported $300 million.[29] By September 2020, press reported that FWD Group was considering an initial public offering in Hong Kong.[14] That month, the company purchased a stake in IPP Financial Advisers.[30] As of 2020, FWD Group had $50.9 billion in assets under management and 7.5 million customers.[14] By 2021, the company managed approximately US$63 billion in assets and had 6,100 employees in Asia.[1]

In 2022, the company's Value of New Business reached US$823 million, up 29% compared to 2021, and its segmental adjusted operating profit before tax was US$334 million, representing an 83% increase over the previous year.[31][4]

In 2023, the company entered the Malaysian life insurance market through an investment in Gibraltar BSN Life Berhad, which was renamed FWD Insurance Berhad. Alongside other investors, FWD Group acquired a stake from The Prudential Insurance Company of America, a wholly owned subsidiary of the US-based, NYSE-listed Prudential Financial, Inc. (PFI).[32][33] On March 13, 2023, FWD refiled its Main Board listing application for its Hong Kong IPO, with total private placement amounting to US$1.825 billion since December 2021.[34] In May of the same year, the company appointed Sid Sankaran as a Managing Director and it Chief Financial Officer (CFO).[2] In August, FWD Group received investment-grade credit ratings from Fitch Ratings and Moody’s. Fitch assigned FWD Group a long-term Issuer Default Rating (IDR) of “BBB+” with a stable outlook; Moody’s assigned a Baa2 issuer rating to FWD Group with a positive outlook.[35]

For the year 2023, the company’s Value of New Business reached US$991 million, up 22% compared to 2022, and its operating profit after tax was US$372 million, up 27% from 2022.[36]

In March 2024, FWD completed an additional investment for a 21% stake in FWD Takaful Berhad, making it the majority shareholder with a 70% holding.[37] In May of the same year, the company launched a new health business, FWD HealthyMe, and appointed Dr. Sarah Salvilla as Chief Health Officer.[38]

Community involvement and corporate social responsibility

From 2017-2020, FWD Group was the title sponsor of the North Pole Marathon, supporting environmental protection efforts. The company also collaborated with EcoMatcher to plant forests in the Philippines, Thailand, and Indonesia.[39]

In April 2020, FWD Philippines launched a Covid-19 Charity Drive to donate to healthcare workers and provide essential supplies across its operational regions.[40] In 2022, the company collaborated with Junior Achievement Asia Pacific to introduce JA SparktheDream, a program focused on teaching financial literacy, innovation, and social awareness to primary school students, teachers, parents, and volunteers. [41]

To commemorate its 10th anniversary in 2023, FWD initiated the 10 Grants in 10 Markets program, offering grants to support charitable programs focused on financial inclusion.[42]

Business

Since its foundation in 2013, FWD has expanded to operate in 10 markets including Japan, Singapore, the Philippines, Indonesia, Vietnam, Malaysia, and Cambodia.[1] Notable acquisitions of the company include MetLife's business in Hong Kong and SCB Life Assurance in Thailand.[7]

FWD provides a range of insurance products, including life and medical insurance, general insurance, employee benefits, and health services such as FWD HealthyMe.[10][38]

See also

References

  1. ^ a b c d e f g Lockett, Hudson (2021-06-17). "Hong Kong tycoon Richard Li's FWD to raise up to $3bn in US IPO". Financial Times.
  2. ^ a b "Sid Sankaran joins FWD Group Holdings". The Royal Gazette. 2023-05-31. Retrieved 2024-08-01.
  3. ^ "Our Team;" FWD Group
  4. ^ a b c d Baigorri, Manuel (2021-06-17). "Tycoon Richard Li Insurer FWD Files for $2 Billion U.S. IPO". www.bloomberg.com.
  5. ^ a b "Hong Kong Insurer FWD Group Eyes Singapore Listing". Insurance Journal. July 31, 2018.
  6. ^ a b Soon, Stella (September 20, 2019). "Asian insurer FWD is expanding aggressively in Asia". CNBC.
  7. ^ a b c d "Richard Li's FWD acquires life insurance unit of Thailand's Siam Commercial Bank". South China Morning Post. July 1, 2019.
  8. ^ a b c d e "AIG Agrees to Sell Japan Life Business to Hong Kong's FWD Group". Carrier Management. 15 November 2016. Retrieved 2021-03-04.
  9. ^ a b Hermesauto (4 December 2019). "FWD to pull out of group medical insurance business in Singapore". The Straits Times.
  10. ^ a b c d "Richard Li's FWD Group acquiring an Asian insurance empire". www.ft.com. 28 June 2019.
  11. ^ a b "FWD's Huynh Thanh Phong - 'You have to find the right way to connect'"; FT
  12. ^ "Billionaire Richard Li's FWD Files for Hong Kong IPO". Wall Street Journal. February 28, 2022.
  13. ^ "Billionaire Li's FWD Filing HK IPO Application Again, Sources Say". Wall Street Journal. March 13, 2023.
  14. ^ a b c d "Richard Li's FWD Plans Up to $3 Billion Hong Kong IPO - Bloomberg". 23 September 2020.
  15. ^ "Pacific Century sells FWD stake to reinsurer". South China Morning Post. 17 October 2013. Retrieved 2021-03-04.
  16. ^ a b c "FWD Group 'close to acquiring Vietcombank' for $400m". www.internationalinvestment.net. 2019-09-24. Retrieved 2021-03-04.
  17. ^ Daga, Sumeet Chatterjee, Anshuman (2017-04-19). "Thailand's Siam Commercial in exclusive talks with FWD for $3 billion insurance sale: sources". Reuters. Retrieved 2021-03-04.{{cite news}}: CS1 maint: multiple names: authors list (link)
  18. ^ "Why FWD does not act like a traditional insurance brand and sponsors music festivals". The Drum. 23 November 2017.
  19. ^ a b "FWD to bag CBA's Indonesia unit". The Jakarta Post. 24 October 2018. Retrieved 2021-03-04.
  20. ^ "FWD Life rebrands business as acquisition completed". The Jakarta Post. 8 June 2020.
  21. ^ Ching, Ooi Tee (2019-03-26). "Salim Majid Zain now heads FWD Takaful | New Straits Times". NST Online. Retrieved 2021-06-28.
  22. ^ "SCB, FWD Group set to reach life insurance deal". Bangkok Post. 30 March 2019.
  23. ^ "Brand launch for Takaful provider | The Star". www.thestar.com.my. 29 July 2019.
  24. ^ Vu, Anshuman Daga, Khanh (12 November 2019). "FWD in insurance distribution deal with Vietcombank bank, buys venture". Reuters. Retrieved 2021-03-04.{{cite news}}: CS1 maint: multiple names: authors list (link)
  25. ^ Hermesauto (4 December 2019). "FWD to pull out of group medical insurance business in Singapore". The Straits Times. Retrieved 2021-03-04.
  26. ^ "FWD Singapore to drop group medical insurance". www.internationalinvestment.net. 2019-12-05. Retrieved 2021-03-04.
  27. ^ "Prudential signs $753 mn deal with FWD Group". mint. 2020-03-19. Retrieved 2021-03-04.
  28. ^ "Vietnam: FWD group strengthens life business". Asia Insurance Review. 28 April 2020. Retrieved 2021-03-04.
  29. ^ "FWD to buy stake in Indonesian life insurer for about US$300 million". South China Morning Post. 2020-06-23. Retrieved 2021-03-04.
  30. ^ "FWD Insurance buys minority stake in financial advisory company". www.spglobal.com. 9 September 2020. Retrieved 2021-03-04.
  31. ^ "Hong Kong Tycoon's FWD Nears Filing for $1 Billion IPO". Bloomberg. February 27, 2022.
  32. ^ "FWD enters Malaysian life insurance with Gibraltar BSN investment". Insurance Business. February 21, 2023.
  33. ^ Or, Mary (2023-04-04). "FWD Group acquires majority stake in Gibraltar BSN". www.insurancebusinessmag.com. Retrieved 2024-07-31.
  34. ^ "Life Insurer FWD Refiles Hong Kong Listing Application". news.ambest.com. 2023-03-14. Retrieved 2024-07-31.
  35. ^ Cueto, Junalyn (2023-08-26). "FWD Group announces inaugural investment grade ratings". www.insurancebusinessmag.com. Retrieved 2024-08-01.
  36. ^ "Insurer's profit jumps 27pc to US$372m". The Standard. 2024-03-17. Retrieved 2024-08-01.
  37. ^ Jain, Saumya (2024-03-18). "FWD Group becomes majority stakeholder of FWD Takaful Berhad - Reinsurance News". Reinsurance News. Retrieved 2024-08-01.
  38. ^ a b Libatique, Roxanne (2024-05-07). "FWD Group unveils new health business". Insurance Business. Retrieved 2024-08-01.
  39. ^ "FWD continues North Pole marathon sponsorship and introduces Hong Kong celebrity team". Marketing-Interactive. 2020-03-12. Retrieved 2024-08-01.
  40. ^ "FWD Insurance enhances coverage with Covid-19 Assist – The Manila Times". www.manilatimes.net. 4 May 2020. Retrieved 2024-08-06.
  41. ^ "FWD's financial literacy programme expands to 7 markets to boost financial literacy in Asia". Marketing-Interactive. 2023-05-23. Retrieved 2024-08-06.
  42. ^ Chan, Yiu Wai (2023-08-15). "FWD Group marks 10th anniversary with region-wide community initiatives". Marketing-Interactive. Retrieved 2024-08-06.
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