FWD Group is reportedly the frontrunner to acquire PT Commonwealth Life, the Indonesian life insurance business of the Commonwealth Bank of Australia (CBA).
The Hong Kong-based insurer, owned by billionaire Richard Li, is the preferred bidder for an 80% stake in the Indonesian unit, the Australian Financial Review reported.
Citing several sources, the report said that the deal could be worth up to US$300 million and the firms may put pen to paper as early as Tuesday (October 23). FWD reportedly outbid several competitors during CBA’s auction, including Singapore’s Great Eastern Holdings, Indonesia’s Sequis Life, the UK’s Prudential, and Canada’s Sun Life.
Credit Suisse is advising CBA on the transaction.
PT Commonwealth Life offers life insurance protection products, unit-linked savings and investment products, traditional life insurance, credit insurance, and accident and hospitalisation insurance. Its headquarters are located in Jakarta and it is present in 20 major cities in Indonesia, with over 400,000 individual and group customers.
FWD is already present in Indonesia through FWD Life Indonesia, formerly known as PT Finansial Wiramitra Danadyaksa. If it succeeds in acquiring PT Commonwealth Life, it will be able to substantially increase its market reach. FWD is also present in Hong Kong and Macau, Thailand, Singapore, the Philippines, Vietnam, and Japan.