FWD Group (1828) Q2 2025 earnings summary

Executive summary

• Achieved record interim results for the first half of 2025, following a successful IPO on the Hong Kong Stock Exchange that raised US$466 million and improved financial flexibility.

• New business sales (APE) grew 38% year-over-year to US$1,246 million, with new business CSM up 34% to US$794 million and VNB up 21% to US$506 million.

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

• Embedded value rose 8% to US$6.38 billion, and comprehensive tangible equity increased 8% to US$8.15 billion.

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

Financial highlights

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

• Net underlying free surplus generation more than doubled to US$417 million.

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

• Return on tangible equity was 17%; leverage ratio improved to 23.7% (pro forma 23.0% including IPO proceeds).

• Net remittances from subsidiaries totaled US$541 million, and net capital generation was US$729 million in 1H25.

Outlook and guidance

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

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

• 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.