FWD Group (1828) Q4 2025 earnings summary

Executive summary

• Achieved record financial results for 2025, with net profit of US$166 million (up over 400%), driven by organic growth across 10 Asian markets and a customer-led, digitally enabled strategy.

• Raised US$466 million in a successful Hong Kong IPO, securing capital market access, and included in major indices such as Hang Seng Composite and MSCI Hong Kong Small Cap.

• 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.

• 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 US$2.446 billion; new business CSM up 18% to US$1.476 billion.

• Net profit after tax under IFRS 17 reached US$166 million, up over 400% from US$24 million in 2024.

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

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

• Net underlying free surplus generation increased 20% to US$857 million; solvency ratio at 265%.

Outlook and guidance

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

• 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.

• Group solvency ratio expected to decrease to 210% with Japan ESR adoption, but no impact on financial flexibility.