Zurich-based Swiss Re has inked an agreement with Pacific Century Group, to acquire 12.3% stake in FWD Group, in a transaction valued at nearly $425m.

Committing to provide additional investments to fund FWD’s planned expansion across Asia, the Swiss company said that the acquisition is part of its strategy to expand into high growth markets.

Swiss Re group strategy officer John Dacey said, ”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."

Pending receipt of concerned regulatory approvals, Swiss Re’s initial investment in FWD is likely to conclude during the first quarter of 2014.

Swiss Re’s ultimate ownership stake in FWD will be determined based on the amount of committed capital invested ultimately.

Asia-based private investment group Pacific Century Group acquired ING’s life insurance businesses in Hong Kong, Macau, and Thailand, and the general insurance and pensions operations in Hong Kong, in February 2013, which was rebranded as ‘FWD’ in August 2013.

Most recently, Swiss Re was reportedly looking for viable options to divest Aurora National Life Assurance Co, as the company seeks to exit the US life and health insurance market, reported Bloomberg.