The acquisition of MetLife Hong Kong is said to further consolidate FWD Group’s footprint, market share, and distribution synergies in the Hong Kong insurance market
Pan-Asian life insurer FWD Group has wrapped up its previously announced acquisition of MetLife Limited and Metropolitan Life Insurance Company of Hong Kong Limited (collectively MetLife Hong Kong) from US insurance major MetLife.
The acquisition, which was announced in June 2019, was undertaken by FWD Management Holdings, which is the Hong Kong-registered business of FWD Group.
Financial terms of the deal were not disclosed.
Metropolitan Life Insurance Company of Hong Kong was formed in 1995 as MetLife’s fully-owned subsidiary in the region. On the other hand, MetLife Limited was formed from Citi Fubon Life Insurance Company Hong Kong, a joint venture between Citigroup and Fubon Group, in which the MetLife companies eventually acquired full ownership in 2007.
Why FWD Group acquired MetLife Hong Kong
The acquisition of MetLife’s Hong Kong business is said to further consolidate FWD Group’s footprint, market share, and distribution synergies in the Hong Kong insurance market. Furthermore, the deal is said to underline the continued confidence of the insurer in the long-term growth potential of Hong Kong.
FWD Group said that it will rename and rebrand the newly acquired life insurance businesses in the coming few months. The company said that the acquired entities will continue to operate via all its existing channels across its businesses.
In spite of the change in ownership, all MetLife Hong Kong’s existing policies will continue to be honoured by it, said FWD Group.
FWD Group CEO Huynh Thanh Phong said: “This acquisition is a firm testament to our confidence in the long-term growth and potential of the Hong Kong insurance market and enhances our reach and platform in our flagship market.
“I’m very proud of our team who have worked tirelessly to successfully complete yet another landmark acquisition in our journey to become a leading pan-Asian insurer and look forward to welcoming our newest employees, agents, partners and customers from MetLife Hong Kong.”
Last month, FWD Group signed a deal to acquire a minority stake in Asuransi BRI Life, the life insurance business of Bank Rakyat Indonesia.