FWD Group posts first IFRS 17 net profit in 2024 full year results

Strong31 percent growth in new business CSM;deliverspositive operating cashflow

HONG KONG,March 12, 2025/PRNewswire/ -- FWD Group Holdings Limited ("FWD Group"or"FWD") today announced its full year results for the twelve months ended31 December 2024.

  •  Net profit after tax ofUS$24 millionrepresents the company's first net profit under International Financial Reporting Standard (IFRS) 17. Operating profit after tax increased 29 percent toUS$463 millionwith continued positive contributions from each of the company's four geographic reporting segments: Hong Kong SAR& Macau SAR;Thailand&Cambodia;Japan; and Emerging Markets.



  •  New business contractual service margin (CSM) ofUS$1.222 billion, with underlying[i]year-on-year growth of 31 percent. This adds to the company's overall CSM balance, which is released over time to the income statement under IFRS 17.



  •  Achieved positive operating cashflow for the first time, off the back of record dividends of overUS$600 millionin 2024 from geographic business segments. Further improved the company's financial flexibility, with total undrawn committed credit facilities increased to approximatelyUS$1.4 billionand the early refinancing and syndication of aUS$1 billionloan.



  •  New appointments to the FWD Group Board of Directors made inFebruary 2025, withAndrew Weir,Dominic Leung Ka Kui, andLaura Deal-Lacey. The Board is increasingly diverse with deep business experience inAsia, and now consists of 13 directors, comprising two executive directors, two non-executive directors and nine independent non-executive directors.



  •  Appointed key executives to expanded leadership roles, effective1 January 2025, withBinayak Duttaas Senior Managing Director,Southeast Asia& Group Chief Business Operations Officer, andSid Sankarannow Group Chief Financial Officer& Group Chief Operating Officer.

Huynh Thanh Phong, Group Chief Executive Officer and Executive Director of FWD Group, said,"These outstanding results for FWD in 2024 highlight the sustained execution of our strategy across our 10 markets inAsia. We delivered FWD's first net profit under IFRS 17 with all four geographic segments contributing, and posted terrific growth in underlying new business CSM. Our strong financial performance also translated to another significant milestone – FWD's first ever positive operating cashflow result."

"Throughout 2024, FWD continued to invest in meeting the unique protection, health, and wealth requirements of customers inAsia, with new offerings like FWD Private. We also rolled out FWD Cube, our proprietary agency management platform with industry leading digital and generative AI capabilities, inThailand,the Philippines,Malaysia, andVietnam. We're more committed than ever to changing the way people feel about insurance for the better,"addedHuynh Thanh Phong.

All four geographic business segments – Hong Kong SAR& Macau SAR;Thailand&Cambodia;Japan; and Emerging Markets – once again delivered operating profitability in 2024, after reaching this milestone for the first time in 2023.

New business sales (APE) growth of 19 percent reflected exceptionally strong results in Hong Kong SAR& Macau SAR, as well as continued growth in Emerging Markets.Japanachieved modest APE growth from its individual protection business.Thailand&Cambodiaposted modest declines, reflecting a more challenging sales environment amidst weaker macro-economic conditions.

The 31 percent underlying growth in overall new business CSM was driven by a strong performance across the majority of the 10 markets FWD operates in. Hong Kong SAR& Macau SAR delivered an outstanding performance, as demand for insurance products remained robust. The Emerging Markets segment delivered a strong contribution, alongside solid growth fromJapan. InThailand&Cambodia, new business CSM reflected continued macro-economic environment challenges.



Twelve months ended / as at

31 December^







US$ millions, except for percentages

2023



2024



Growth

(year on year

CER basis)



Growth

(underlying*,

CER basis) 





















Profitability



















Operating profit after tax

378



463



28.6 %



n/a



Net profit/(loss) after tax

(733)



24



n/a



n/a



Contractual service margin (CSM) balance

5,046



5,174



6.1 %



n/a

















Growth

















New business sales (APE)

1,646



1,916



18.6 %



n/a



New business CSM

1,349



1,222



(6.7 %)



30.5 %



Value of new business (VNB)

991



834



(14.0 %)



13.5 %





Customer indicators

















Purchase customer emotion – good or great

92.0 %



92.1 %



+0.1pp



n/a



Claims customer advocacy – net promoter score

62.0



64.9



+2.9pp



n/a





Risk& Capital

















Adjusted net underlying free surplus generation

786



839



9.7 %



n/a



Group LCSM cover ratio^^

292 %



260 %



n/a



n/a





Value

















Group embedded value

5,682



5,569



2.8 %



n/a



Comprehensive tangible equity

7,172



7,162



4.2 %



n/a



Return on tangible equity

10.8 %



15.4 %



n/a



n/a

































About FWD Group

FWD Group is a pan-Asian life and health insurance business that serves approximately 30 million customers across 10 markets, including BRI Life inIndonesia. FWD's customer-led and digitally enabled approach aims to deliver innovative propositions, easy-to-understand products and a simpler insurance experience. Established in 2013, the company operates in some of the fastest-growing insurance markets in the world with a vision of changing the way people feel about insurance. For more information, please visitwww.fwd.com

^The results are for the 12 months ended 31 December 2024 and are compared to the same period in 2023. Growth rates are represented on a constant exchange rate (CER) basis. Except for operating profit/(loss) after tax (non-IFRS measure), net profit/(loss), CSM, and comprehensive tangible equity, all other numbers are unaudited. Operating profit after tax and net profit after tax are presented net of non-controlling interests (in previously reported 2023 results, operating profit after tax of US$372m and net loss after tax of US$717m were not net of non-controlling interests). New business sales are calculated on an annual premium equivalent (APE) basis, based on 100 percent annual premiums and 10 percent single premiums.

 

^^Prescribed capital requirement (PCR) basis

 

[i] * VNB and new business CSM on an underlying basis assumes changes to actuarial methods and operating assumptions as of year-end 2023 to reflect latest post-COVID experience and market disruption in Vietnam are retrospectively applied and also includes costs associated with agency recruitment programmes. 2023 new business CSM excludes the impact of the block reinsurance transaction with Athene Holding Ltd.

 

Return on tangible equity is calculated as operating profit after tax, divided by the average of the balances of tangible equity as of the beginning and end of such period. Tangible equity is calculated as adjusted total equity attributable to shareholders of the company, minus the intangible assets net of non-controlling interests.

 

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SOURCE FWD Group Holdings Limited