FWD Group Holdings, the Asian insurer controlled by Hong Kong billionaire Richard Li, is considering options including a potential stake sale after delaying a planned initial public offering (IPO), according to sources familiar with the matter.
The company could seek a valuation of more than US$10 billion in any deal, the sources said, asking not to be identified because the information is private. Global insurers including Toronto-based Sun Life Financial have approached FWD to express interest in a tie-up, the sources said.
While talks with Sun Life hit a snag over price, other insurers eyeing a bigger presence in South-east Asia and Hong Kong have also expressed preliminary interest in a potential deal, the sources said. A fresh strategic investment could provide an exit to some long-standing FWD shareholders as an IPO is unlikely to happen anytime soon due to market volatility, the sources added.
Should a deal go ahead, FWD could use part of the proceeds to reduce debt, while it remains focused on boosting sustainable profitability and growth, the sources said. Considerations are ongoing and may not lead to any transaction, they said.
A representative for FWD declined to comment. A spokesperson for Sun Life said the company’s practice is not to comment on M&A speculation, adding that the company is always looking for opportunities to add scale and capabilities that will help meet its medium-term financial objectives, as well as support its four strategic pillars in asset management, Canada, United States and Asia.
Last year, FWD considered a fresh pre-IPO private funding round amid a delay of its planned Hong Kong listing, Bloomberg News reported in May. FWD had filed for a Hong Kong IPO three times, most recently in March 2023. Before that, the firm abandoned a New York listing plan that could have raised as much as US$3 billion in 2021, sources familiar with the matter have said.
FWD was started in 2013 by Li, who also runs PCCW, one of the city’s major telecom companies. The insurer has since expanded across Asia both organically and via acquisitions. Li’s investment vehicle Pacific Century Group is the company’s majority shareholder. Minority investors include Swiss Re, Apollo Global Management and Canada Pension Plan Investment Board. BLOOMBERG
