Hong Kong-based insurer FWD Group has confirmed that it will acquire Commonwealth Bank of Australia’s (CBA) majority stake in PT Commonwealth Life, its Indonesian life insurance venture.
The transaction, which is pending regulatory approval, also includes a 15-year life insurance distribution partnership with PT Bank Commonwealth, CBA’s Indonesian banking business.
An earlier report placed the deal’s value at up to US$300 million for an 80% stake in the insurer.
According to a statement by FWD, it will rename and rebrand the business upon completion of the deal. FWD will continue to honour all existing policies of PT Commonwealth Life, and its customers will not be affected by the transfer of ownership.
In the meantime, PT Commonwealth Life will continue to operate as before, through all its existing channels across its business.
“This is another exciting milestone in our journey to become a leading pan-Asian insurer that changes the way people feel about insurance,” said FWD Group chief executive Huynh Thanh Phong.
“This acquisition will complement our existing business in Indonesia, providing new opportunities to continue to build our customer-led technology-driven strategy to embrace the enormous long-term growth potential in the Indonesian insurance market.”
Since FWD’s launch in 2013, it grew from its home market of Hong Kong and Macau to include Thailand, Singapore, Vietnam, Japan, the Philippines, and Indonesia – where it has been present since 2015 through its joint venture PT FWD Life Indonesia