FWD Group (1828) Q2 2025 earnings summary

Executive summary

• Achieved record interim results for 1H25, following a successful IPO on the Hong Kong Stock Exchange that raised $466 million and improved financial flexibility.

• New business sales (APE) grew 38% year-over-year to $1.25 billion, with new business CSM up 38% to $1,246 million and VNB up 21% to $506 million.

• Operating profit after tax rose 9% to $251 million, and net profit after tax under IFRS 17 reached $47 million.

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

• Moody’s upgraded the financial strength rating to A2.

Financial highlights

• Value of new business (VNB) up 21% to $506 million; new business margin at 40.6%.

• Group solvency ratio (LCSM PCR basis) strengthened to 283%, up from 260% at year-end 2024.

• Net underlying free surplus generation increased 115% to $417 million.

• Cash remittances from operating entities totaled $541 million, similar to full year 2024.

• Leverage ratio improved to 23.7%; pro forma leverage including IPO proceeds at 23%.

Outlook and guidance

• Management targets further growth across Asia, leveraging digital capabilities and multi-channel distribution.

• VNB margins for full year 2025 expected to be marginally below first half due to persistent low interest rates in Thailand.

• OPAT for second half of 2025 expected to be marginally lower due to completed dividend remittances.

• CSM and EV growth rates expected to normalize in the second half but remain on track for mid-teens growth in coming years.

• Focus on risk management, compliance, and adapting to evolving regulatory standards, including global minimum tax and new solvency rules in Japan.