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

  • Written by: PR Newswire Asia - Daily Bulletin Au RSS

Strong 31 percent growth in new business CSM; delivers positive 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 ended 31 December 2024.

  •  Net profit after tax of US$24 million represents the company's first net profit under International Financial Reporting Standard (IFRS) 17. Operating profit after tax increased 29 percent to US$463 million with 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) of US$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 over US$600 million in 2024 from geographic business segments. Further improved the company's financial flexibility, with total undrawn committed credit facilities increased to approximately US$1.4 billion and the early refinancing and syndication of a US$1 billion loan.
  •  New appointments to the FWD Group Board of Directors made in February 2025, with Andrew Weir, Dominic Leung Ka Kui, and Laura Deal-Lacey. The Board is increasingly diverse with deep business experience in Asia, 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, effective 1 January 2025, with Binayak Dutta as Senior Managing Director, Southeast Asia & Group Chief Business Operations Officer, and Sid Sankaran now 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 in Asia. 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 in Asia, 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, in Thailand, the Philippines, Malaysia, and Vietnam. We're more committed than ever to changing the way people feel about insurance for the better," added Huynh 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. Japan achieved modest APE growth from its individual protection business. Thailand & Cambodia posted 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 from Japan. In Thailand & 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 in Indonesia. 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 visit www.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.

 

Authors: PR Newswire Asia - Daily Bulletin Au RSS

Read more https://www.prnasia.com/story/archive/4638262_AE38262_0

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