The South China Morning Post has reported that FWD Group, the Swiss Re backed insurance business of Pacific Century Group (PCG), is in advanced talks to acquire MetLife’s Hong Kong insurance business.
According to reports, an agreement between the two companies could be made within the next few weeks.
People close to the matter reportedly said that a deal could value MetLife Hong Kong at under $400 million, adding that it would expand FWD’s presence in the region and that at that price, MetLife would sell the asset for less than its $400 million embedded value.
Talks remain ongoing, and despite people familiar with the matter stating that talks are advanced, it’s important to remember that nothing is final and talks concerning a deal could still fall apart.
FWD has been expanding in Asia, underlined by its acquisition of a majority stake in PT Commonwealth Life, as well as a joint venture in Shanghai.