Hong Kong insurer ‘to snap up HSBC stake’ in joint venture
FWD, owned by tycoon Richard Li, is starting with a minority stake in HSBC’s Malaysian operation, but has bigger plans
Hong Kong/Kuala Lumpur — Hong Kong-based insurer FWD Group has agreed to buy HSBC Holdings’ stake in a Malaysian insurance joint venture as part of a plan to expand its presence in Asia, three people familiar with the matter said. FWD, owned by tycoon Richard Li, is acquiring the British lender’s 49% stake in HSBC Amanah Takaful (Malaysia) initially, with plans to ultimately own a majority by buying some shares from the existing partners, they said. The deal shows that foreign insurers are keen on Malaysia, drawn by its strong economic growth, rising middle-class income and low insurance penetration, despite lingering regulatory uncertainty over foreign ownership rules. The exact value of the deal is not immediately clear, with one of the people putting it at less than $100m. It is expected to be completed by the end of 2018, subject to approval by Bank Negara Malaysia (BNM). A foray into the Southeast Asian country by FWD will add to its Asian market footprint that already covers I...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.