.jpg)
Hong Kong’s NWS Holdings has agreed to acquire FTLife Insurance from Beijing-based JD Group for HK$21.5 billion ($2.75 billion) in cash.
NWS is the logistics and transport service arm of New World Development Co. (NWD), and will act as a conduit to allow the group to expand from its core businesses of infrastructure and services, according to a statement by the company.
FTLife has been present in Hong Kong for over 30 years, and offers a comprehensive range of life insurance products, including whole life, term life, endowment, investment-linked, accident, and health cover. It currently has a network of more than 2,500 tied agents as well as key strategic partnerships with more than 230 brokers and independent financial advisers in Hong Kong.
According to NWS, FTLife is well positioned to benefit from the robust long-term outlook for the Hong Kong life insurance industry, which is primarily driven by a growing high net worth population, an aging population and the high savings rate in Hong Kong.
Despite lower demand due to regulatory action, NWS expects Hong Kong to continue being a favoured destination for mainland Chinese and overseas visitors looking to buy insurance.
“FTLife will be a great addition to the New World family,” said Adrian Cheng, executive vice-chairman and general manager of NWD. “This transaction is a significant step towards our goal of building an immersive ecosystem of premium quality offerings to our customers and community. Given our deep roots in Hong Kong and our focus on the Greater Bay Area, we believe we are the right platform for FTLife to realise its full potential over the long term.”
