16 January, 2019
Tanner De Witt has advised insurer Bowtie Life Insurance Company Limited on its Series A investment round. The investment round was closely connected with its successful application to the Hong Kong Insurance Authority for authorisation as a virtual insurer operating solely through digital distribution channels. This is the first successful application under the Insurance Authority’s recently announced Fast Track process for applicants seeking to operate solely through digital channels. As Hong Kong’s first fully-licensed virtual insurance company, Bowtie can now offer insurance protection directly to customers without any insurance intermediaries. The announcement was made on 20 December 2018.
In its Series A round, Bowtie raised HK$234 million (US$30 million) from leading international financial services organisation Sun Life Hong Kong Limited. Bowtie’s shareholder base includes the Hong Kong X Technology Fund and angel investors.
Pádraig Walsh, who was the lead partner on the transaction, advises businesses in the technology sector, and has a specific focus on “fintech” (financial technology) and “insurtech” (insurance technology). Pádraig advised in the negotiations and on the transaction documents to conclude the Series A investment round.
Commenting on the transaction and approval, Pádraig said “I have known Michael Chan and Fred Ngan, the founders of Bowtie, for some years now. They have been at the vanguard of insurtech innovation in Hong Kong. This transaction and regulatory approval is an endorsement of their vision, and gives real hope for developing a mature insurtech ecosystem in Hong Kong. It is a real milestone. I am delighted to have been able to support Michael and Fred, and I wish them every success as they lead Bowtie to trailblaze more in the insurance industry.”
