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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

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2010s

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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

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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

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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

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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 comprehensive range of insurance products, including life and medical insurance, general insurance, employee benefits, and health services such as FWD HealthyMe.[10][38] The company uses digital platforms to enhance customer experience and streamline processes such as policy management and claims processing, collaborating with Microsoft to integrate AI technologies for more efficient customer interactions and operational processes.[43]

See also

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References

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  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.
  43. ^ "FWD Group partners with Microsoft to shape the future of AI-driven insurance experiences – Microsoft News Center Hong Kong". Microsoft. 2024-02-26. Retrieved 2024-08-01.
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