FWD Group (1828) Q4 2024 earnings summary

Executive summary

• Achieved first net profit after tax under IFRS 17 of $24 million in 2024, with operating profit after tax up 29% to $463 million year-over-year, driven by all four geographic segments.

• New business contractual service margin (CSM) grew 31% year-over-year to $1,222 million, reflecting strong performance across 10 markets.

• Delivered positive operating cashflow for the first time and improved financial flexibility with $1.4 billion in undrawn committed credit facilities.

• Continued investment in digital platforms and innovative products to meet evolving customer needs in Asia.

Financial highlights

• New business sales (APE) rose 18.6% year-over-year to $1,916 million; value of new business (VNB) increased 13.5% to $834 million.

• Comprehensive tangible equity reached $7.2 billion (+4.2%), and group embedded value grew to $5.6 billion (+2.8%).

• Return on tangible equity improved by 4.6 percentage points to 15.4%.

• Group LCSM cover ratio (PCR basis) at 260%, leverage ratio at 25.5%.

• Net capital generated increased 9.7% to $839 million.

Outlook and guidance

• Focus on organic growth and expansion in Southeast Asia to achieve top 3 market positions in more countries.

• Targeting superior growth in mature markets, especially in savings products and high-net-worth segments.

• Continued digitalisation and AI adoption to enhance customer and distributor experience.

• Committed to increasing profits and cash flows with improved operational efficiency.