Fwd Group Holdings Limited · HKEX:1828
Fwd — FY2024 Earnings Presentation
37 slides from Fwd's earnings presentation, 2025
Slide 1: FWD insurance
FWD insurance
Slide 2: FWD delivered outstanding results in 2024
FWD delivered outstanding results in 2024 Achieved first net profit after tax1 under IFRS 17 of $24 million; operating profit after tax1 increased by 29 percent to $463 million, with positive contributions from all four geographic segments New business contractual service margin (CSM) of $1,222 mill
Slide 3: Strong financial performance across key metrics continuing in 2024
Strong financial performance across key metrics continuing in 2024 Growth $1,222m Profitability $1,916m Profitability $834m Profitability (+30.5%1) (+18.6%) (+13.5%1) New business CSM New business sales (APE) Value of new business (VNB) $463m $24m $5.2bn Profitability Profita6ility (+28.6%) Profitab
Slide 4: Business Highlights
insurance Business Highlights
Slide 5: FWD: a leading Pan-Asian life insurer with diversified businesses
FWD: a leading Pan-Asian life insurer with diversified businesses New business CSM1 New business sales (APE2) Value of new business (VNB3) Comprehensive tangible equity4 ($m) ($m) ($m) ($m) CTE (CER) 1,222 7,172 +4.2% 7,162 1,916 834 Tangible +30.5% +18.6% +13.5% 960 1,646 749 2,927 Equity 3,080 Net
Slide 6: Thailand & Cambodia – consistent bancassurance growth
Thailand & Cambodia – consistent bancassurance growth #2 in Thailand individual APE1 #1 in Thailand bancassurance channel1 Increase in quality agency force New business CSM SCB banca partnership Agency ($m) ’23-24 YoY2: (6.6)% Bancassurance value of new business Number of active agents ($m) ’23-24 Y
Slide 7: Emerging Markets – robust expansion across four markets
Emerging Markets – robust expansion across four markets Significant reduction in expense overrun Steady growth in emerging market Positive operating profit2 in 2023 and during 2024, which contributed to strong countries partly offset by market disruption 2024 as operations reach scale new business C
Slide 8: Japan – expanding product suite to improve market share
Japan – expanding product suite to improve market share Product proposition focusing on medical Individual business with higher margin Yielded consistent remittance and other protection products, as well as contributed to consistent profitability to the Group exploring savings and investment sectors
Slide 9: Hong Kong & Macau – very strong new business growth
Hong Kong & Macau – very strong new business growth Eliminated expense overrun in 2024, Strong, sustained growth through both Delivered consistent profitability and which also contributed to onshore and offshore channels, as dividend to the Group new business CSM growth borders reopened in 2023 New
Slide 10: Growing and market leading position in Southeast Asia bancassurance
Growing and market leading position in Southeast Asia bancassurance Bancassurance value of new business Bancassurance is the largest distribution channel of ($m) FWD, contributing to 47% of new business value in 2024 388 15%2 346 #1 Bancassurance leader in Southeast Asia with 14% market share in ban
Slide 11: Strong brokerage / IFA channel provides growth and diversification
Strong brokerage / IFA channel provides growth and diversification Brokerage / IFA is the second largest and fastest growing distribution channel of FWD in 2024 Brokerage / IFA APE Brokerage / IFA VNB Continued to invest in meeting wealth requirements ($m) ($m) of customers following FWD Private lau
Slide 12: Scaling a high quality, productive, digitally and AI enabled agency force
Scaling a high quality, productive, digitally and AI enabled agency force Number of active agents1 Agency new business sales (APE) ($m) CAGR: 22% CAGR: 24% 11,300 414 9,500 358 7,500 276 2022 2023 2024 2022 2023 2024 MDRT-registered2 members largest MDRT force as of 2024, MDRT force in Thailand, 2,0
Slide 13: Powered by our proprietary industry leading digital platforms
Powered by our proprietary industry leading digital platforms Case Study: FWD Cube in Thailand 1 Growth in average Growth in average Enhancing agency Digital issued rate 2,3 monthly protection APE 2 number of active agents 2 efficiency2 Oct 2023 to Jun 2024 90% 13% 40% Increase in percentage of auto
Slide 14: A customer-led, digitally enabled, and socially responsible insurer
A customer-led, digitally enabled, and socially responsible insurer 2024 awards and recognition Celent Celent The Digital Banker The Digital Banker Model Insurer Award for Model Insurer Award for Best Customer Insights Best Cloud Initiative for Customer Experience Initiative – Insurance Digital CX –
Slide 15: An established pan-Asian insurer focused on growth and sustainable profitability
An established pan-Asian insurer focused on growth and sustainable profitability Continued high quality organic growth and expansion in Southeast Asia to achieve top 3 market positions in more countries, building on strength in bancassurance channel Tapping into pockets of superior growth in our mor
Slide 16: Financial Highlights
insurance Financial Highlights
Slide 17: Achieved sustainable and profitable growth through quality business and a strong balance sheet
Achieved sustainable and profitable growth through quality business and a strong balance sheet • Double digit growth in all new business metrics (new business CSM, VNB, APE), laying foundation for future profitability and cash generation 1 Profitable Growth • Strong growth in Hong Kong with new busi
Slide 18: Continued momentum in strong new business growth during 2024
Financial Business growth management Cash generation Balance sheet Continued momentum in strong new business growth during 2024 New business CSM1 New business sales (APE)2 Value of new business (VNB) ($m) ($m) ($m) ’23-24 YoY3: ’23-24 YoY: ’23-24 YoY3: 30.5% 18.6% 13.5% 1,916 1,222 10 108 1,646 192
Slide 19: Delivered significant operating profit growth
Financial Business growth management Cash generation Balance sheet Delivered significant operating profit growth Operating profit after tax1 ($m) ‘23-24 CAGR: 28.6% Key highlights 463 378 21 Emerging Markets turned operating profit positive for the first 17 193 time in 2023, and further grew by 57.0
Slide 20: Focus on expense discipline led to further reduction in expense overrun
Financial Business growth management Cash generation Balance sheet Focus on expense discipline led to further reduction in expense overrun EV operating variance – expenses1 ($m) Key highlights Expense growth lower than growth in allowances 149 132 Significantly reduced expense overrun in 2024 demons
Slide 21: Increasing free surplus generation
Financial Business growth Cash generation Balance sheet management Increasing free surplus generation Adjusted net UFSG1 ($m) 839 786 625 2022 2023 2024 Continued in-force business growth improved Positive claims and persistency variances contribute distributable earnings to higher adjusted net UFSG
Slide 22: Increased net remittance from operating entities
Financial Business growth Cash generation Balance sheet management Increased net remittance from operating entities Net remittances by segment1 ($m) All four operating segments are operating profit positive in 2023 and 2024 Hong Upstreamed dividends for the first time post HK RBC adoption in Kong 20
Slide 23: Robust balance sheet further boosted by enhanced liquidity management
Financial Business growth Cash generation Balance sheet management Robust balance sheet further boosted by enhanced liquidity management Enhanced maturity profile from successful refinancing Refinancing undertaken Enhanced maturity Profile Undrawn credit facilities ($m) • Successfully issued $325m n
Slide 24: Appendix
insurance Appendix
Slide 25: Diversified and innovative product suite focused on customer needs
Diversified and innovative product suite focused on customer needs Diverse product portfolio and coverage Selected product launches in recent years2 Provides critical illness patients and families with dedicated (Launched in 2021) nurse and personalised support 6% 8% 22% An online family takaful med
Slide 26: CSM release remains the core driver of operating profit
CSM release remains the core driver of operating profit IFRS 17 operating profit bridge (2024) ($m) 46 319 893 64 38 588 574 (116) (348) 452 11 463 (139) CSM release Operating Risk adjustment Others 1 Net insurance Net invesment Operating Other revenue, Non-attributable Operating Operating profit No
Slide 27: High organic growth of CSM before assumption changes
High organic growth of CSM before assumption changes CSM1 evolution (2024) ($m) CSM amortisation rate: Organic CSM movement3: $176m 9.9% 1,171 58 10 41 5,851 5,762 Improved (475) 85 5,174 5,046 from (174) (358) in 2023 (588) 1H244 1H24 +13% organic growth, (385) before assumption changes (298) Openi
Slide 28: Improved net profitability due to higher operating profit and more stable investment performance
Improved net profitability due to higher operating profit and more stable investment performance IFRS 17 OPAT to NPAT (2024)1 ($m) Non-market Related Market Related 139 591 463 452 (11) (227) 89 (155) (174) (36) (40) (38) 10 14 24 OPAT Non-controlling OPAT Operating tax OPBT Finance costs 2 Others 3
Slide 29: Robust underlying embedded value growth offset by economic factors
Robust underlying embedded value growth offset by economic factors 2024 embedded value (EV) evolution1 ($m) Underlying EV movement: $412m Economic factors: $(471)m Improved from (132) in 2023 834 16 618 (59) (258) 6,094 5,682 (740) 5,569 1H242 (53) (194) (278) (224) Improvement in negative impact of
Slide 30: Balanced investment portfolio to achieve sustainable growth
Balanced investment portfolio to achieve sustainable growth Investment portfolio by asset class1 Corporate bonds by credit ratings1 2024 2024 3.2% Total investment 4% yield5 Non-par 1% Government bonds 2%2% Other fixed 41% 3% income securities8 10% 3.1% 7% 7% 12% Par2 Fixed income AAA portfolio yiel
Slide 31: Embedded value: economic assumptions
Embedded value: economic assumptions Risk discount rate comparison (%) 14.0% 13.8% 12.8% 13.0% 12.8% 12.6% 10.8% 10.8% 10.7% 8.8% 8.8% 9.0% 9.2% 8.7% 7.8% 8.2% 8.3% 7.6% 7.2% 7.6% 7.4% 6.3% 6.8% 6.0% Hong Kong Thailand Japan Indonesia Philippines Vietnam Singapore Malaysia Long-term 10-year comparis
Slide 32: Embedded value and value of new business sensitivities
Embedded value and value of new business sensitivities Key embedded value sensitivities comparison1 (%) 1.3% 0.6% (0.3)% (2.3)% (1.9)% (2.5)% (2.9)% (3.0)% (3.0)% (3.0)% (3.2)% (3.3)% (5.8)% (5.9)% (6.5)% (7.3)% (7.2)% (7.2)% RDR +100bps Equities -10% Interest rates -50bps Lapses +10% Mortality / mo
Slide 33: IFRS 17: risk-free rates with illiquidity premium comparison
IFRS 17: risk-free rates with illiquidity premium comparison Risk-free rate (“RFR”) with illiquidity RFR with illiquidity premium – HKD RFR with illiquidity premium – THB premium – USD 5.7% 5.5% 5.6% 5.3% 5.1% 5.3% 5.2% 4.9% 4.7% 4.8% 4.9% 4.7% 4.0% 4.3%4.4% 4.3%4.5% 4.4% 4.5% 4.5% 4.6% 3.7% 3.7% 3.
Slide 34: Disclaimer (1/4)
Disclaimer (1/4) THIS PRESENTATION IS PROVIDED TO YOU FOR REFERENCE ONLY Forward Looking Statements This presentation may contain a number of "forward-looking statements". Forward looking statements include information concerning FWD Group (“FWD”)’s possible or assumed future results of operations,
Slide 35: Disclaimer (2/4)
Disclaimer (2/4) Key Performance Indicators This presentation may also contain indicators of historical financial and operating performance that are based on a number of assumptions. These indicators include, but are not limited to, value of new business, new business margin, embedded value (EV), ad
Slide 36: Disclaimer (3/4)
Disclaimer (3/4) Financial Presentation This presentation includes historical financial data, including operating profit after tax, net profit attributable to Equity Holders of the Company, annualised premium equivalent ("APE"), total weighted premium income (“TWPI”), leverage ratio and return on ta
Slide 37: Disclaimer (4/4)
Disclaimer (4/4) No invitation is made by this presentation or the information contained herein to enter into, or offer to enter into, any agreement to purchase, acquire, subscribe for or underwrite any securities or structured products, and no offer is made of any shares in or debentures of a compa