Hong Kong-based NWS Holdings has signed an agreement to acquire FTLife Insurance in a cash transaction worth HK$21.5bn ($2.8bn) from Chinese firm JD Group.

An indirect wholly-owned subsidiary of NWS Holdings has signed the deal with an indirect wholly-owned subsidiary of Tongchuangjiuding Investment Management Group, pursuant to which NWS will buy the entire issued share capital of FTLife.

FTLife provides a complete assortment of life insurance products, such as whole life, term life, endowment, investment-linked, accident and health products.

Currently, FTLife has a network of over 2,500 tied agents as well as strategic partnerships with more than 230 brokers and independent financial advisers in Hong Kong.

NWS Holdings strategy

NWS believes that the transaction will help diversify its business and generate recurring income and provide sustainable growth to shareholders.

Commenting on the deal, NWD executive vice-chairman and general manager Adrian Cheng said: “FTLife will be a great addition to the New World family. This transaction is a significant step towards our goal of building an immersive ecosystem of premium quality offerings to our customers and community.

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“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.”

NWS Holdings executive director Brian Cheng stated: “We have been impressed by FTLife’s proven strategy to grow FTLife’s business and to improve its competitive position in Hong Kong.

“FTLife complements our existing business portfolio and will generate solid recurring income to NWS Holdings and create value for our shareholders. NWS Holdings is a committed, long-term, strategic shareholder for FTLife and we are confident in FTLife’s sustainable growth prospects.”

NWS said that the deal will be funded by a mixture of internal resources and committed external financing from global banks available to NWS.

The transaction has already been approved by the boards of directors of NWD and NWS and is likely to conclude upon receiving regulatory and shareholders’ approvals.

Once the deal is closed, the acquired entity will operate as an indirect wholly-owned subsidiary of NWS.