FWD Group (1828) Q2 2025 (Q&A) earnings summary

Executive summary

• Achieved record interim results for the first half of 2025, marking the first earnings as a publicly listed company following a successful IPO in July 2025, raising US$466 million and enhancing financial flexibility.

• New business sales (APE) rose 38% year-over-year to US$1,246 million, with new business CSM up 34% to US$794 million, and operating profit after tax up 9% to US$251 million.

• Net profit reached US$47 million, a record interim result under IFRS 17, with all four geographic segments contributing positively.

• Embedded value increased 8% to US$6.4bn, and comprehensive tangible equity grew 8% to US$8.2bn compared to year-end 2024.

• Moody’s upgraded the financial strength rating to A2, and digital innovation and new product launches supported growth.

Financial highlights

• Free surplus generation was notably strong in the first half, aided by a one-off reinsurance transaction of approximately $100 million.

• Group LCSM cover ratio improved to 283%, and net capital generated was $417m (+115%).

• Return on tangible equity was 17%, and leverage ratio improved to 23.7% (pro forma 23.0% post-IPO proceeds).

• Net remittances totaled $541m, and CSM balance rose 11% to $6.0bn.

• Mild expense for Global Minimum Tax (GMT) under IFRS just over $1 million; GMT led to a decrease in EV of ~$60 million and CSM decline of ~$80 million, mainly from Cayman and Macau.

Outlook and guidance

• Management remains optimistic, targeting further growth and digital expansion across Asia, leveraging demographic and economic trends.

• Focus remains on organic growth in Southeast Asia and select mature markets, with ongoing expansion of brokerage/IFA and agency channels.

• Continued investment in digital infrastructure and AI tools to drive efficiency and customer experience.

• Ongoing capital optimisation and product repricing to enhance solvency and reduce capital strain.

• Hong Kong expected to maintain double-digit growth, though normalization and tapering are anticipated.