Swiss Re invests $425m in FWD Group

Swiss Re has entered into an agreement with Pacific Century Group to invest up to $425 million in FWD Group, an Asian insurance venture formed by Hong Kong business man Richard Li, who is also the son of Li Ka-shing, one of Asia’s richest men.

FWD Group was formed in February 2013 when Asia-based private investment group Pacific Century Group, of which Li is chairman, completed the acquisition of ING's life insurance operations in Hong Kong, Macau, and Thailand, and the general insurance and pensions operations in Hong Kong. The operations were renamed FWD in August 2013.

Swiss Re said the move illustrates its commitment to these high growth markets in Asia.

Although the total transaction size, including committed capital, is $425 million, Swiss Re's ultimate ownership stake in FWD will be determined based on the amount of committed capital eventually deployed.

"FWD is an exciting new regional player which will bring attractive insurance products to help address the rapidly growing needs of consumers and significant protection gaps across Asia,” said Swiss Re's group CEO Michel Liès.

Swiss Re's Group strategy officer John Dacey added: "The investment in FWD affirms Swiss Re's commitment to the high growth Asian insurance market and its strategy to execute meaningful principal investments across the primary insurance value chain."

Swiss Re's initial investment in FWD is expected to close in the first quarter of 2014, subject to necessary regulatory approvals.