The deal covers general insurance and group medical insurance.
FWD Limited is acquiring 25% of the share capital of bolttech insurance for $20.72m (HK$162.61m), subject to a closing adjustment.
FWD expects the deal to enhance its cooperation with bolttech in personal general insurance products, covering product offerings, distribution and customer service, it said in an HKEX filing.
FWD said that the transaction also provides an opportunity to further strengthen the existing partnership with bolttech in group medical insurance.
Amongst conditions of the sale include the Insurance Authority’s approval, as well as bolttech insurance maintaining its insurance license in Hong Kong.
FWD said that its independent valuator considered the limited number of listed general insurers in Hong Kong as part of the decision to acquire bolttech insurance. FWD Limited also considered 25 comparable companies across Asia.
Upon completion of the sale, FWD Limited, Bolttech Discovery Holdings, the parent company of bolttech insurance, and the insurer will set up a nine-director company board.