Fwd Group Holdings Limited · HKEX:1828
Fwd — 1H 2025 Earnings Presentation
36 slides from Fwd's earnings presentation, Aug 29, 2025
Slide 1: 2025 interim results presentation
Celebrate living fwd.com 2025 interim results presentation 29 August 2025 Draft as of August 24, 10:30am
Slide 2: Disclaimer
Disclaimer This document (“document”) has been prepared by FWD Group Holdings Limited (the “Company”, and together with its subsidiaries, “FWD” or the “Group”) solely for use at the presentation held in connection with the announcement of the Company’s financial results (the “presentation”). Referen
Slide 3: Our strategy has delivered outstanding performance in 1H25
Our strategy has delivered outstanding performance in 1H25 APE 1 ($m) New business CSM 2 ($m) Value of New Business 2 ($m) +19% 1,916 +38% +31% 1,222 1,646 960 +34% +13% 834 +21% 749 Growth 1,246 573 794 404 506 876 1H 1H 1H 2023 2024 1H25 2023 2024 1H25 2023 2024 1H25 OPAT 3 ($m) NPAT 3 ($m) Expens
Slide 4: Our strategy drives sustainable growth
Our strategy drives sustainable growth Our strategy Growth realisation Consistently Tailored multi-distribution Leading Top 10 71% strategy & platform MDRT-registered members Brokerage/ IFA VNB Bancassurer in Southeast Asia 1 globally in past 7 years 2 growth from 1H24 to 1H25 Digitalisation and wid
Slide 5: A. Business Highlights
A. Business Highlights
Slide 6: We have built leading businesses in markets across Asia
We have built leading businesses in markets across Asia Hong Kong and Macau Thailand and Cambodia Top 10 No. 1 No. 2 No. 2 market share bancassurer life insurer in 2025 MDRT in 2025 MDRT 1 through 1Q25 2 in Thailand 3 in Thailand 3 in Thailand 1 Japan Emerging Markets 5 No. 1 No. 4 Savings No. 1 No.
Slide 7: First half 2025: Growth across all distribution channels
First half 2025 : Growth across all distribution channels Bancassurance Brokerage/ IFA APE growth 1 +16% +97% APE growth 1 43% 38% 1H2025 VNB 2 Ecosystem Partnerships Agency and Others 3 6% 14% APE growth 1 +19% +20% APE growth 1 Note: All growth rates above are on a constant exchange rate (CER) bas
Slide 8: Brokerage / IFA demonstrated strongest growth in 1H25
Brokerage / IFA demonstrated strongest growth in 1H25 Brokerage / IFA APE Fastest growing channel in 1H25 ($m) 97% CER 38% of total 1H25 VNB contribution • Successful build-out of high-net-worth hub in 466 Asia • Catering to HNW customers’ global 235 investment and legacy planning needs • Launched i
Slide 9: Bancassurance and Agency Channel
Bancassurance and Agency Channel Bancassurance is our largest distribution channel Growth opportunity in agency channel 43% of total 1H25 VNB contribution 14% of total 1H25 VNB contribution Bancassurance APE Agency APE ($m) 16% ($m) 20% CER CER 480 209 397 171 1H24 1H25 1H24 1H25 (4)% 36% VNB ($m) 2
Slide 10: Gen-AI empowered digital tools to improve distribution, serve customers and increase efficiency
Gen-AI empowered digital tools to improve distribution, serve customers and increase efficiency Early investments are complete and built a solid foundation of digital infrastructure 2019-20: 2021-22: 2023-24: 2024 and Beyond Data Lake Cloud Migration Data Mesh Digital Tool Implementation Single cust
Slide 11: B. Financial Section
B. Financial Section
Slide 12: Strong financial performance continuing into 2025
Strong financial performance continuing into 2025 Growth $794m Profitability $1,246m Profitability $506m Profitability (+34%) (+38%) (+21%) New business CSM APE Value of new business (VNB) Profitability $251m Profitability $47m Profitability $6.0bn Profitability (+9%) (+11%) Operating profit after t
Slide 13: Hong Kong & Macau
Hong Kong & Macau 1H25 NB CSM 50% New business sales (APE) New business CSM Operating Profit after Tax 2 ($m) ($m) ($m) 1H24-1H25 YoY: 103% 1H24-1H25 YoY: 1H24-1H25 YoY: 157% 28% 640 400 315 125 98 156 1H24 1H25 VNB ($m) 140 91% 267 1H24 1H25 1H24 1H25 VNB Margin (2.7) pps NB CSM 13.1 pps 44.3% 41.7
Slide 14: Thailand & Cambodia
Thailand & Cambodia 25% 1H25 NB CSM New business sales (APE) New business CSM 1 Operating Profit after Tax 3 ($m) ($m) ($m) 1H24-1H25 YoY: (5)% 1H24-1H25 YoY: 1H24-1H25 YoY: (13)% 17% 81 305 311 213 199 64 1H24 1H25 VNB ($m) 151 (16)% 137 1H24 1H25 1H24 1H25 VNB Margin (5.6) pps NB CSM (5.8) pps 49.
Slide 15: Japan
13% Japan 1H25 NB CSM New business sales (APE) New business CSM Operating Profit after Tax 2 ($m) ($m) ($m) 1H24-1H25 YoY: 2% 1H24-1H25 YoY: 1H24-1H25 YoY: 7% (13)% 60 63 106 105 96 93 1H24 1H25 VNB ($m) 49 (12)% 44 1H24 1H25 1H24 1H25 VNB Margin (11.1) pps NB CSM 8.4 pps 80.8% 69.7% 158.7% 167.1% (
Slide 16: Emerging Markets
11% Emerging Markets1 1H25 NB CSM New business sales (APE) New business CSM Operating Profit after Tax 3 ($m) ($m) ($m) 1H24-1H25 YoY: 18% 1H24-1H25 YoY: 1H24-1H25 YoY: (18)% 191% 232 109 197 38 89 13 1H24 1H25 VNB ($m) 64 (9)% 58 1H24 1H25 1H24 1H25 VNB Margin (7.4) pps NB CSM (17.1) pps 32.5% 25.1
Slide 17: Higher CSM driving profitability growth
Higher CSM driving profitability growth 1H25 IFRS 17 OPAT bridge ($m) CSM Release Insurance Service Result Operating Tax OPAT 2 +30% 353 +12% 336 +9% 267 291 223 251 (67) (89) 1H24 1H25 1H24 1H25 1H24 1H25 1H24 1H25 135 28 35 353 336 9 (27) (182) 251 245 6 (89) 1 CSM release Operating Risk adjustmen
Slide 18: Record net profit supported by continued expense discipline
Record net profit supported by continued expense discipline 1H25 IFRS 17 OPAT to NPAT ($m) Non-market Related Market Related 334 89 251 245 (6) (112) (22) 5 1H24 NPAT: (70) $3m Non-market related (26) expenses reduced 39 8 47 from (91) in 1H24 (70) 2 Operating profit Non-controlling Operating profit
Slide 19: High organic growth of CSM continues to drive profitability
High organic growth of CSM continues to drive profitability 1H25 CSM 1 evolution ($m) CSM amortisation rate 5: (298) in 1H24 11.0% Operating change in CSM 2: $607m 155 31 6,126 212 6,332 9 5,996 757 (6) 5,174 (336) Operating variances and assumption changes improved from (330) in 1H23, and (339) in
Slide 20: Robust underlying embedded value growth
Robust underlying embedded value growth Operating Expense Variances 2 ($m) 1H25 embedded value (EV) evolution 16 ($m) -32 -59 EVOP improved by -149 -132 77% from 1H24 2022 2023 2024 1H24 1H25 EV Operating Profit (EVOP): $837m Economic factors: $342m 506 37 327 6,380 294 6,038 15 5,569 (368) 0 Improv
Slide 21: Continued capital generation and remittances
Continued capital generation and remittances Net capital generation 1 Net remittances 3 ($m) ($m) 729 589 541 527 128 417 95 97 102 190 226 73 193 70 400 250 181 315 252 (31) 201 (36) (133) (60) 1H23 1H24 1H25 2023 2024 1H25 2 Net UFSG before opening adjustments Opening adjustments Note: Figures may
Slide 22: Improving solvency position through continuing capital optimisation efforts
Improving solvency position through continuing capital optimisation efforts Solvency improved from 2024 Group LCSM cover ratio (PCR basis 1) (%) Group LCSM tier 1 cover ratio (MCR basis 1) (%) 283% 260% 340% 282% 2024 1H25 2024 1H25 Management actions taken to improve capital efficiency and Group so
Slide 23: Robust balance sheet further boosted by enhanced liquidity management
Robust balance sheet further boosted by enhanced liquidity management No hard maturities until 2028 Access to significant liquidity Revolving loan facility improves flexibility and boosts liquidity position ($m) Perps Bonds Loan $1,385m in total undrawn credit facilities Improving leverage ratio Lev
Slide 24: We are a sustainable-growth focused pan-Asian insurer
We are a sustainable-growth focused pan-Asian insurer Growth Diversified Tech Financial Solid Experienced markets distribution scalability discipline capital position management • Organic growth • Leading • Customer focused • Growth focus with • Cash flow positive • Experienced with in SEA bancassur
Slide 25: Appendix
Appendix
Slide 26: FWD Investor Relations
FWD Investor Relations Contact IR team Expected results release plan Current expected Results period results release date 1 Content Email: New business 3Q25 Oct 2025 results investor.relations@fwd.com Full financial FY25 Mar 2026 disclosure New business 1Q26 May 2026 results Full financial 1H26 Aug
Slide 27: Credit ratings reflect our Investment Grade balance sheet
Credit ratings reflect our Investment Grade balance sheet Company Insurance Current Rating Insurance Financial Strength1 A2 A FWD Group Holdings Limited Issuer Default Rating Baa1 / Stable BBB+ / Stable FWD Life Insurance Company Insurance Financial Strength Rating / A2 / Stable A / Stable (Bermuda)
Slide 28: 1H25 comprehensive tangible equity (CTE)
1H25 comprehensive tangible equity (CTE) 1 ($m) YE24-1H25 CTE growth (CER): 8% 1,134 376 8,150 412 11 (14) 7,162 39 (970) Opening Net gain Fair value gains on Net finance expenses Foreign currency Other capital Net CSM movement Intangible assets Comprehensive comprehensive assets from insurance and
Slide 29: Investment portfolio by asset class
Investment portfolio by asset class 1 Participating funds and Other policyholder and shareholder assets other participating businesses’ assets 2 3.2% Equities and equity investment funds account for 17% of total Equities and equity investment funds account for 4% of total other Fixed Income particip
Slide 30: Innovative propositions focused on customer needs
Innovative propositions focused on customer needs Diverse propositions… …tailored for various customer needs in different markets 3 Hong Kong and Macau Japan Participating Individual Non- Individual Group and Non- Protection participating Protection Others participating 92% 6% 1% 96% 3% 1% 6% 4% 17%
Slide 31: Environmental, Social and Governance (ESG) strategy and progress
Environmental, Social and Governance (“ESG”) strategy and progress Progress on our value creation strategy 1 Effective governance and Accessible protection Sustainable investment sustainable business • Continued initiatives to reach underserved • Signatory to the United Nations Principles of • ESG f
Slide 32: A customer-led and digitally enabled insurer
A customer-led and digitally enabled insurer 2025 awards and recognition The Digital Banker The Digital Banker SZ&W Group SZ&W Group Excellence in Customer Outstanding Digital CX Data & Analytics Customer Experience Services Innovation - Insurance Transformation in Insurance Excellence Award Excelle
Slide 33: Embedded value: economic assumptions
Embedded value: economic assumptions Risk discount rate comparison (%) 13.0% 13.0% 12.6% 12.6% 10.7% 10.7% 8.2% 8.2% 8.3% 8.3% 8.7% 8.7% 6.8% 6.8% 7.4% 7.4% Hong Kong Thailand Japan Indonesia Philippines Vietnam Singapore Malaysia Long-term (10-year) rate comparison (%) 6.5% 6.5% 5.8% 5.8% 3.5% 3.5%
Slide 34: Embedded value and value of new business sensitivities
Embedded value and value of new business sensitivities Key embedded value sensitivities comparison 1 (%) 0.6% 0.8% (1.9)% (1.9)% (2.9)% (3.0)% (3.0)% (3.1)% (5.9)% (5.9)% (7.2)% (7.4)% RDR +100bps Equities -10% Interest rates -50bps Lapses +10% Mortality / morbidity +10% USD +5% Key value of new bus
Slide 35: 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 5.5% 5.5% 5.6% 5.8% 5.1% 5.3% 5.1% 4.9% 4.7% 4.6% 4.7% 4.5% 4.6% 4.4% 4.5% 3.7% 4.0% 4.1% 3.3% 3.8% 3.1% 3.1% 3.4%
Slide 36: Robust solvency on a GWS basis
Robust solvency on a GWS basis Group LCSM cover ratio (PCR basis 1) Sensitivity analysis of Group LCSM cover ratio ( PCR basis1 ) (%) 1H25 9.0% 4.0% 2.0% 283% (2.0%) (4.0%) 260% (13.0%) 2024 10.0% 2.0% 3.0% (2.0%) (3.0%) (9.0%) 2024 1H25 Interest Interest Equities Equities USD USD rates rates +10% -