Richard Li's FWD turns profitable ahead of US IPO

[HONG KONG] Billionaire Richard Li controlled FWD Group Holdings swung to a profit in the first nine months of this year, the Hong Kong-based insurer disclosed in an amended filing for an initial public offering in the United States.

The company reported net profit applicable to shareholders of US$131 million for the nine months ended Sept 30, compared to a loss of US$306 million in the year-ago period.

It said revenue jumped nearly 38 per cent to US$8.69 billion.

FWD has not yet set the terms for its IPO, but Reuters in June reported it could raise between US$2 billion and US$3 billion, valuing the company at around US$13 billion to US$15 billion.

The company has faced questions from the US Securities and Exchange Commission about its ties to mainland China and has been treated by authorities as a Chinese business rather than a Hong Kong entity, Reuters reported earlier this month.

REUTERS