Apollo, CPPIB and others back FWD in $1.4bn private placement

FWD Group Holdings, a Hong Kong-based life insurance business, has agreed to receive private placements totaling $1.425 billion.

FWD Group Holdings, a Hong Kong-based life insurance business, has agreed to receive private placements totaling $1.425 billion. The investors include Apollo Global Management, Canada Pension Plan Investment Board, Li Ka Shing Foundation, Metro Pacific Investments Corp, Pacific Century Group, Siam Commercial Bank and Swiss Re. The deal is expected to close this month.

PRESS RELEASE

14 December 2021 | Hong Kong

FWD Group Holdings Limited (“FWD”) today announced that it has entered into subscription agreements with a number of investors including a subsidiary of leading retirement services company Athene Holding Ltd., 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 Limited (“Siam Commercial Bank” or “SCB”) and Swiss Re pursuant to which the investors agreed to participate in private placements which are to raise US$1.425 billion in aggregate. The private placements are expected to complete in December 2021, subject to satisfaction of customary closing conditions.

The private placements will take the form of cash subscription of new ordinary shares to be issued by FWD. The proceeds will be used to provide additional capital to support FWD’s strong growth momentum and to reduce leverage.

Huynh Thanh Phong, 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%2 YoY in 1H21, followed by a 21%2 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.”

1. Value of new business (VNB) is present value, measured at point of sale, of future net-of-tax profits on a local statutory basis less the corresponding cost of capital. VNB is calculated quarterly, based on assumptions applicable at the start of each quarter.

2. All growth rates are on a constant exchange rate basis. This represents growth calculated as if the exchange rates used to determine the results had remained unchanged from those used in the comparative period.

About FWD Group
FWD Group is a pan-Asian life insurance business with approximately 10 million customers across 10 markets, including some of the fastest growing insurance markets in the world.

Established in 2013, FWD is focused on making the insurance journey simpler, faster and smoother, with innovative propositions and easy-to-understand products, supported by digital technology. Through this customer-led approach, FWD is committed to changing the way people feel about insurance.