FWD Group (“FWD”) today announced that it has agreed to acquire Commonwealth Bank of Australia’s (“CBA”) majority stake in PT Commonwealth Life, its life insurance venture in Indonesia.
As part of the agreement, FWD will enter into a 15-year life insurance distribution partnership with PT Bank Commonwealth, CBA’s Indonesian banking business. The transaction is subject to regulatory approvals.
FWD plans to rename and rebrand the business after the transaction is approved and completed. In the meantime, PT Commonwealth Life will continue to operate as before, through all its existing channels across its business.
Following completion, all existing policies will continue to be honoured by FWD. Existing customers of PT Commonwealth Life will not be affected by the transfer of ownership.
Huynh Thanh Phong, FWD Group Chief Executive Officer, said, “This is another exciting milestone in our journey to become a leading pan-Asian insurer that changes the way people feel about insurance. 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 has grown to become a pan-Asian insurer across its key markets of Hong Kong, Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam and Japan. FWD first entered the Indonesian market through PT FWD Life Indonesia, its joint-venture insurance company that was launched in 2015.