Moody’s Ratings has announced it has upgraded the ratings of FWD Group Holdings Limited (FWD Group) and its key subsidiaries, FWD Life Insurance Company (Bermuda) Limited (FWD Life HK) and FWD Reinsurance SPC, Ltd (FWD Re).
The issuer rating for FWD Group has been elevated to Baa1 from Baa2, while the insurance financial strength ratings (IFSR) for FWD Life HK and FWD Re have climbed to A2 from A3. The outlook for all these entities has shifted to stable from positive.
This upgrade reflects FWD Group’s enhanced profitability, improved ability to generate capital, and increased financial flexibility, according to a news release. The company’s recent listing on the Hong Kong Stock Exchange in July 2025, which raised approximately $442 million, has further bolstered its capital and access to financial markets.
Since 2023, all four of FWD Group’s key markets have reported positive operating profits, a trend that continued with strong growth in 2024. The first quarter of 2025 saw FWD maintain its robust growth, with a 32% year-on-year increase in the value of new business (VNB) and a 55% surge in new business contractual service margin (NB CSM). Additionally, FWD has shown improved cost efficiency, evidenced by a reduction in embedded value operating expense and commission variance in 2023 and 2024.
FWD Group also demonstrates strong capitalization, with a Group-Wide Supervision (GWS) coverage ratio on a prescribed capital requirement (PCR) basis at 260% as of the end of 2024. Key operating companies have consistently maintained solid local solvency ratios and increased net capital remittance to the group.
While the company has a “strengthened market presence in the region,” supported by its diverse distribution channels and product offerings, Moody's noted that FWD Group’s “weak earnings track record and low interest coverage” have partially offset these strengths. The company’s profitability had “historically been strained by upfront expenses to support business growth.”
Moody’s anticipates gradual improvement in profitability but expects financing expenses to remain “relatively high compared to its operating profit” over the next 12-18 months. Furthermore, FWD Group’s increasing presence in developing markets such as Thailand, Indonesia, and Vietnam presents higher operational risks and volatility.
The A2 IFSRs for FWD Life HK and FWD Re are closely tied to the overall credit profile of FWD Group, reflecting the high degree of capital fungibility among the operating entities. FWD Life HK’s rating also acknowledges its growing market presence and distinct branding in Hong Kong, fueled by strong premium growth from both domestic and mainland Chinese visitor segments. FWD Re’s rating recognizes its crucial role as a captive reinsurer within the group, assuming business with a similar risk profile.
Looking ahead, the stable outlook reflects Moody’s expectation that FWD Group will continue to enhance profitability and reduce financial leverage while maintaining strong capitalization.
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