Swiss Re invests in Asian insurer to support ‘strong growth momentum’

Global reinsurer  Swiss Re has invested in  FWD Group Holdings, which has raised $1.425 billion in private placements from investors to support its “strong growth momentum in the attractive Asian life insurance market”.

Hong Kong-headquartered pan-Asian life insurer FWD has entered into subscription agreements with a number of investors including a subsidiary of Athene Holding, through an investment allocated by its asset manager Apollo, Canada Pension Plan Investment Board (CPP Investments), Li Ka Shing Foundation, Metro Pacific Investments Corporation (MPIC), Pacific Century Group, The Siam Commercial Bank Public Company (SCB) and Swiss Re.

All these investors have agreed to participate in private placements which are to raise $1.425 billion in aggregate. The placements will take the form of cash subscription of new ordinary shares, and are expected to complete in December 2021, subject to satisfaction of customary closing conditions.

The proceeds will be used to provide additional capital to support FWD’s growth momentum and to reduce leverage.

Huynh Thanh Phong (pictured), group chief executive officer and executive director of FWD, said: “We’re very excited to welcome new and existing partners to invest in FWD. They bring significant expertise and extensive network to support our continued growth and enhance our distribution and investment capabilities. These latest investments in FWD reflect a recognition of our ability to continue our strong growth momentum in the attractive Asian life insurance sector.

“Our strong performance has continued into 2021, with our value of new business1 growing 45% YoY in 1H21, followed by a 21% YoY growth in 3Q21, driven by strong organic growth during this period which is particularly impressive given the challenging operating environment including the impact of COVID-19 in several of our key markets.”

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