FWD Group (1828) Q4 2025 (Q&A) earnings summary

Executive summary

• Achieved record financial results in 2025, driven by organic growth across 10 Asian markets, notably Hong Kong, Japan, and Thailand, and successful execution of strategic initiatives.

• Listed on HKEX, raising HK$3.6B (US$466m), and refinanced US$1.15B, reducing annual debt servicing cost by over 25%.

• Moody's upgraded insurer financial strength rating to A2 and Fitch revised outlook to Positive.

• Expense overruns have been addressed in major markets, with only emerging markets still closing the gap.

• Margins in Hong Kong and Macau remain highly sustainable, supported by growth in the UHNW segment.

Financial highlights

• New business sales (APE) grew 25% year-over-year to $2,446m; new business CSM up 18% to $1,476m.

• Net UFSG grew 20% year-over-year in 2025, reflecting strong operating leverage and disciplined expense management.

• Operating profit after tax rose 5% to $499m; net profit after tax surged 411% to $166m.

• Group embedded value increased 19% to $6.9bn; comprehensive tangible equity up 18% to $8.7bn.

• Agency productivity improved by 40% across the group, driven by digital enablement.

Outlook and guidance

• Expect continued growth in 2026, with moderate growth in Hong Kong and strong momentum in Japan and emerging markets.

• Key value metrics expected to grow by mid-teen percentages, with sustainable value creation and efficiency gains anticipated.

• No impact expected to financial flexibility from Japan ESR implementation; stable group capital ratios projected.

• Regulatory changes in Hong Kong mainly impact the retail broker channel, while the high net worth segment remains resilient.

• Thailand anticipates moderate new business sales growth, with ongoing focus on pruning less profitable segments.