b'Mergers & Acquisitions | Life Sector | AsiaSumitomo Life with a 20% stake and the remainderWhile FWD made inroads into Indonesia in 2020, held by Aflac Ventures, Aberdeen AssetAviva exited the country in November 2020 after Management, IPGL and other minority investors. selling its entire shareholding in its JV, Astra Aviva Life, to its JV partner, Astra International. Details of Japanthe transaction were not disclosed. The JV was In March 2020, AEON Financial Service Co., Ltd.subsequently rebranded as Astra Life.(AFS), a Tokyo-based financial services company,Sri Lanka acquired a 60% stake in Tokyo-based Allianz Life Insurance Japan (ALIJ) from Germanys Allianz.In August 2020, Sri Lanka attracted the attention of AFS and Allianz now hold 60% and 40% in the lifedevelopment financial institutions Finnish Fund for insurer, respectively, with ALIJ renamed AEONIndustrial Cooperation Ltd. (Finnfund) and Allianz Life Insurance Co., Ltd. Allianz Fire andNorwegian Investment Fund for Developing Marine Insurance Japan Ltd. and other Allianz GroupCountries (Norfund), who completed a $15 million entities in Japan were not affected by the transac- subordinated debt investment in Softlogic Life tion. The new JV combines the global financialInsurance PLC (Softlogic Life), Sri Lankas third-expertise in insurance management of Allianz Grouplargest life insurer. Norfund and Finnfund are impact with the local retail expertise and distributioninvestors whose objectives are to fund sustainable network of AFS and the AEON group.development through responsible and profitable businesses around the world, and the transaction Indonesia marks one of their first investments in Sri Lanka. The Indonesian insurance market was particularlySoftlogic Life counts other impact investors, includ-active in 2020. FWD continued its ambitious expan- ing global investor LeapFrog Investments Ltd., sion throughout Asia, seemingly undeterred byamong its shareholders. Earlier in the year, in March COVID-19, with two transactions in Indonesia alone.2020, Mnchener Rckversicherungs-Gesellschaft In June 2020, FWD completed its acquisition of PT(Munich Re) completed a $15 million financial Commonwealth Life from Commonwealth Bank ofreinsurance transaction with Softlogic Life. Australia. According to the transaction termsSouth Koreaannounced in 2018, FWD acquired Commonwealth Banks 80% interest in PT Commonwealth Life forIn April 2020, Prudential announced it entered into a $426 million, with the possibility of additionaldefinitive agreement to sell Prudential Life Insurance contingent payments. The agreement also includedCompany of Korea to KB Financial Group Inc. (KB a 15-year bancassurance partnership withFinancial), a Korean financial services provider. The Commonwealth Banks Indonesian banking business,transaction will see Prudential selling 100% of its life Bank Commonwealth. FWD has since rebranded theinsurance business to KB Financial for cash consider-business PT FWD Insurance Indonesia. That sameation of approximately $1.9 billion. KB Financial won month, FWD entered into a conditional sharea reportedly competitive auction process, including subscription agreement to acquire a minority stakebids from Taiwans Fubon Financial Holdings and in BRI Life, the life insurance arm of Bank Rakyatthree other Korean financial firms: MBK Partners, Indonesia (BRI). BRI is one of Indonesias largestHahn & Company and IMM Private Equity. banks and counts itself as the national champion in micro and consumer banking with 120 million customers. The transaction also included a 15-year bancassurance partnership with BRI.MAYER BROWN 19'