Report
EUR 85.33
For Business Accounts Only
FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia. Southeast Asia markets contributed over 40% of its Value of New Business (VNB) in 2020. It had served over 9.9m customers as of Jun 21.
Over FY18-21, FWD’s total revenue more than doubled. Its Annualised premium equivalent (APE) over the same period grew by 60%. Over 1H21, its total revenue grew by 53% YoY, while premium income grew by 36% YoY. The company has been growing fast on the back of US$4.5bn spending on acquisition over FY18-1H21.
However, the company’s underlying strategy remains far from clear to us, as it continues to derive the bulk of its premium from slower growth markets and appears to be divesting out of a high growth market as well.
We covered various aspects of the deal in our earlier note FWD Pre-IPO - Growing fast but strategy remains unclear.
In this note we will talk about the peer comparison and valuations.
FWD Pre-IPO
FWD, a pan-Asian life insurer founded by Richard Li, aims to raise up to US$3bn in its US IPO.FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia. Southeast Asia markets contributed over 40% of its Value of New Business (VNB) in 2020. It had served over 9.9m customers as of Jun 21.
Over FY18-21, FWD’s total revenue more than doubled. Its Annualised premium equivalent (APE) over the same period grew by 60%. Over 1H21, its total revenue grew by 53% YoY, while premium income grew by 36% YoY. The company has been growing fast on the back of US$4.5bn spending on acquisition over FY18-1H21.
However, the company’s underlying strategy remains far from clear to us, as it continues to derive the bulk of its premium from slower growth markets and appears to be divesting out of a high growth market as well.
We covered various aspects of the deal in our earlier note FWD Pre-IPO - Growing fast but strategy remains unclear.
In this note we will talk about the peer comparison and valuations.
Underlying
FWD GROUP HOLDINGS LTD-ADR
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
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