FWD Group announced record interim results for the first half of 2026, with net profit after tax tripling to $172 million, a 269% year-over-year increase, and a 15.5 times surge compared to the previous period. Operating profit after tax (OPAT) rose 20% to $298 million, with all four reportable segments contributing positively. New business sales, measured by annualized premium equivalent (APE), increased 7% to $1.35 billion, while new business value (VNB) jumped 18% to $602 million. Contractual service margin (CSM) for new business also grew by 25% to $996 million, reflecting improved margins due to a favorable product mix shift.
The company's growth was broad-based across its diverse geographic footprint. The Hong Kong and Macau segment saw APE increase by 6%, with VNB and NB CSM in the region growing by 25% each, reaching $332 million and $502 million respectively. Japan was highlighted as a key growth driver, benefiting from expansion into savings and retirement products. Thailand maintained its focus on profitable new business through its bancassurance partnership, while expansion markets including Indonesia, Malaysia, the Philippines, Singapore, and Vietnam also showed strong growth despite macroeconomic uncertainties.
FWD Group's financial position remained robust, with a group prescribed capital ratio of 203% and a 5% increase in both comprehensive tangible equity to $8.83 billion and embedded value to $6.95 billion. The company also remitted $512 million from its subsidiaries, demonstrating strong cash flows. Strategic initiatives included a key hire for the high-net-worth (HNW) business and obtaining ISO/IEC 42001 certification for AI governance, underscoring its commitment to profitable growth and responsible technology use. Analysts have a 'Buy' rating on FWD Group (1828.HK) with a price target of HK$48.00.
