FWD Group (1828) investor relations material

Executive summary

• Net profit after tax tripled year-over-year to US$172 million, with EPS at US$0.13, marking a record result and all four segments profitable.

• New business sales (APE) rose 7% to US$1.35 billion, and new business contractual service margin (NB CSM) grew 25% to US$996 million.

• Value of new business (VNB) increased 18% to US$602 million, and embedded value (EV) rose 5% to US$6.95 billion.

• Comprehensive tangible equity (CTE) increased 5% to US$8.83 billion.

• Technology and digital transformation initiatives, including AI certification, drove operational efficiency and customer engagement.

Financial highlights

• Operating profit after tax increased 20% year-over-year to US$298 million.

• New business CSM margin at 74.9% (+10.6 pps YoY); new business margin at 44.7% (+4.1 pps YoY).

• Expense ratio improved to 12.4% from 13.6% year-over-year, with operating expenses up 2%.

• Total assets reached US$64.45 billion, up from US$62.36 billion at year-end 2025.

• CSM balance increased 13% to US$7.22 billion.

Outlook and guidance

• Continued focus on profitable growth, digital transformation, and expanding high-net-worth (HNW) offerings.

• Full-year 2026 new business sales and margins in Hong Kong and Macau expected to be in line with first half.

• Japan expected to remain a key growth driver, with margins moderating but staying high.

• Thailand and Cambodia anticipate continued margin improvement and positive momentum into 2027.

• Mid-teen growth guidance maintained for key value metrics like CSM and EV.