FWD Group enters MY life insurance market by investing in Gibraltar BSN

FWD Group is entering the Malaysian life insurance market following the signing of an agreement to invest a majority stake in Gibraltar BSN Life (Gibraltar BSN). The transaction is expected to close in the second quarter of 2023.

FWD Group and other investors will together hold an effective 70% stake in Gibraltar BSN, which was sold by The Prudential Insurance Company of America, the wholly owned subsidiary of US-based NYSE-listed Prudential Financial. Bank Simpanan Nasional (BSN) and will continue to hold the remaining 30% stake ownership in Gibraltar BSN. Upon completion of the transaction, FWD Group will partner with BSN to further develop and grow Gibraltar BSN.

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This comes as the insurer sees Malaysia as the fourth largest life insurance market by premium in Southeast Asia, with highly attractive macroeconomic fundamentals and favourable demographics.

FWD Group entered the Malaysian market in March 2019 as a provider of family products, including term life, critical illness, cancer, hospital cash benefit and medical protection, according to a statement.  

Existing customers and distribution channels of Gibraltar BSN will not be affected by this investment and all existing policies will continue to be honoured. Customers can also continue to access the company’s products and services using their preferred service channels. Additionally, existing customers and distribution channels of FWD Takaful will not be affected. FWD Group plans to rebrand the Gibraltar BSN business at a later date, it said. 

Huynh Thanh Phong, group CEO and executive director of FWD Group, said that it is creating a full-service offering in Malaysia and that it will be able to offer both family takaful and life insurance solutions in a rapidly growing market with huge long-term potential for growth. “With these strategic developments, we also substantially complete our footprint across key Southeast Asia markets in the 10th anniversary year for FWD Group. Changing the way people feel about takaful and insurance remains the vision that guides our work,” he added.

FWD has had long term plans to expand into APAC region. Bloomberg news reported recently that the company is working towards an IPO (initial public offering) in Hong Kong this year and could seek to raise about $US1billion.

“Our partnership with BSN underscores our commitment to the Malaysian market and we look forward to playing our part in the growth and development of Malaysia's takaful and insurance sectors,” said Binayak Dutta, FWD group managing director, emerging markets and group chief distribution officer. He also added that the company’s written contributions have grown by 173% in its first full year of operation and established a regional technology and innovation hub in Kuala Lampur as well. 

Earlier this month, FWD Group named Adrian Vincent as chief executive officer of FWD Singapore. Vincent joined FWD Singapore in 2019 as general manager, life business, successfully establishing the company’s financial adviser channel and now executing on its high-net-worth strategy.

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