FWD Group Holdings Limited reported substantial gains in its first-quarter 2025 (Q1 2025) results, with new business contractual service margin (CSM) increasing 55% year-over-year to US$465 million.
New business annual premium equivalent (APE) sales reached US$679 million, up 46% from the same period last year.
The insurer said the increase in new business CSM adds to its overall CSM balance, which will contribute to earnings over time under the International Financial Reporting Standard (IFRS) 17 accounting regime.
Growth was broad-based across FWD’s 10 Asian markets, led by robust sales in Hong Kong SAR and Macau SAR. These territories saw strong participation from both local policyholders and Mainland Chinese visitors.
Emerging markets recorded double-digit growth in new business volumes, while Japan posted steady metrics. In contrast, economic headwinds and low interest rates continued to pressure results in the Thailand and Cambodia segment.
In April, FWD extended its financial literacy partnership with JA Worldwide for an additional three years. The collaboration supports the JA SparktheDream initiative, which delivers financial education to primary school students across Asia.
Huynh Thanh Phong, FWD’s CEO and executive director, said the quarter reflected the company’s approach to adapting to market demand.
“FWD Group had a very strong start to the year, with our customer-led strategy driving some incredible new business results. We continued to respond to rapidly evolving customer needs for protection, health, and savings, with 10 new products introduced in the quarter, including FWD Private’s first high-net-worth indexed universal life proposition,” he said.
While its fundamentals are solid, FWD said it remains attentive to global financial and economic uncertainty and manages risk accordingly.
“Risk management is always a top priority, and FWD Group is taking a prudent approach in preparing for a range of possible scenarios and outcomes,” Huynh said.
FWD’s board structure was updated in early 2025 with the appointment of three independent non-executive directors: Andrew Weir, Dominic Leung Ka Kui, and Laura Deal-Lacey.
The board now comprises 13 members, including two executive directors, two non-executive directors, and nine independent members.
The group’s financial performance for the year ending Dec. 31, 2024, marked a key milestone: its first net profit under IFRS 17. Net income reached US$24 million, while operating profit after tax increased 29% year-on-year to US$463 million.
The group’s new business CSM for 2024 was US$1.22 billion, reflecting a 31% increase. The result was supported by demand in Hong Kong SAR, Macau SAR, Japan, and key Southeast Asian markets. Thailand and Cambodia, however, experienced a slowdown due to regional economic factors.
APE sales for the full year grew 19%, with Hong Kong and emerging markets contributing most of the gains. Japan also delivered moderate growth in the individual protection segment, while Thailand and Cambodia reported lower volumes.
FWD achieved positive operating cash flow for the first time in 2024. The company reported more than US$600 million in dividends from its business units.
To further bolster liquidity, the insurer refinanced a US$1 billion loan early and expanded its undrawn credit facilities to approximately US$1.4 billion.
