FWD Group refiles listing application with HK's stock exchange

Hong Kong-based insurer FWD Group has refiled its application to list on the city’s stock exchange, after it postponed its planned listing in May last year amidst market instability.

According to its application proof, the application aims at strengthening FWD’s share capital, enhancing its solvency position and central liquidity, as well as building a capital buffer in excess of applicable statutory requirements.

“Such amounts, which contribute to our capital adequacy ratios, also forms part of the regulatory capital base required to support growth and opportunities to further penetrate customer and channel reach across our operations, including the enhancement of our digital capabilities and strategy, which are in line with our business strategies,” the document read.

Furthermore, the amount of the application also contributes to the company’s additional committed capital contributions to BRI Life in 2024, said the statement.

While FWD has not revealed how much it aims to raise from the Hong Kong IPO, Bloomberg reported that the amount could now be trimmed to US$1 billion.

In terms of its growth strategies, FWD plans to implement the strategies including generating lifetime value by reinforcing leadership in customer acquisition and engagement; increasing scale and productivity by digitalising, expanding and activating new partnerships.

It also plans to enhance protection mix and achieve new business margin uplift through relevant propositions; optimising customer experience and boosting operating leverage through continued investment in digitalisation; and creating additional value by pursuing selective value-enhancing expansion opportunities.

Previously, FWD Group entered the Malaysian life insurance market following the signing of an agreement to invest in 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”) 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.

MARKETING-INTERACTIVE has reached out to FWD Group for additional information.

Don't miss: FWD's IPO plan in HK reportedly receives approval

Back in May last year, FWD Insurance has reportedly gained approval to be listed in Hong Kong after it shirted its IPO plan from the US to Hong Kong last year. 

Reports including Bloomberg and other Hong Kong news outlets said that the company was approved to be listed in Hong Kong after a hearing last Thursday. However, the company, backed by Hong Kong tycoon Richard Li, has not decided on the time of launching the IPO. 

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