FWD Group (1828) Q4 2025 earnings summary

Executive summary

• Achieved record financial results for full year 2025, the first post-IPO period, driven by organic growth across 10 Asian markets and a customer-led, digitally enabled strategy.

• Raised $466 million in a successful Hong Kong IPO, securing full capital market access and supporting future growth; refinanced $1.15 billion, reducing annual debt servicing cost by over 25%.

• Moody's upgraded insurer financial strength rating to A2 and Fitch revised outlook to positive; leverage ratio reduced to 21.3%.

• Built out high net worth hub (FWD Private) in Asia, supporting new business sales and value creation; launched new products for high-net-worth and savings segments.

• Delivered record new business sales, contract service margin, and net profit under IFRS 17.

Financial highlights

• New business sales (APE) grew 25% year-over-year to $2.4 billion; new business CSM up 18% to $1.5 billion.

• Net profit after tax (NPAT) under IFRS 17 reached $166 million, up 411% from $24 million in 2024.

• Operating profit after tax (OPAT) up 5% to $499 million; all segments delivered positive OPAT.

• Comprehensive tangible equity grew 18% to $8.7 billion; embedded value up 19% to $6.9 billion.

• Net underlying free surplus generation increased 20% to $857 million; group prescribed capital ratio at 265%.

Outlook and guidance

• Expect sustainable mid-teens growth in key value metrics (CSM, EV, CTE) and operating profit.

• Hong Kong and Macau new business sales growth expected to moderate in 2026 due to high base effect.

• Thailand and Cambodia anticipate moderate growth in 2026, with a return to higher growth in the medium term.

• Emerging markets expected to maintain strong new business sales momentum.

• All distribution channels contributed to growth in 2025, with continued focus on technology-enabled transformation and tailored distribution.