Hong Kong-headquartered Pan-Asian life and health insurance group, FWD Group Holdings, has reported an operating profit after tax of $223m for the the six months ended 30 June 2024. This figure is stable when compared to the corresponding period in 2023.
In a statement, FWD says that all four of its geographic business segments – Hong Kong SAR & Macau SAR; Thailand & Cambodia; Japan; and Emerging Markets – delivered operating profitability during the first six months of 2024, after reaching this milestone for the first time in 2023.
Record dividends of over $600m have been received in the year to date from geographic business segments.
The group also reported 1H2024 new business contractual service margin of $573m, with underlying year-on-year growth of 26% (Y-o-Y CER= -11.5%). Value of new business was $404m, with underlying year-on-year growth of 14.2% (Y-o-Y CER = -12.5%).
[VNB and new business CSM on an underlying basis assume changes to actuarial methods and operating assumptions as of year-end 2023 to reflect the latest post-COVID experience and market disruption in Vietnam are retrospectively applied and also include costs associated with agency recruitment programmes.]
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FWD Group 2024 interim financial results - summary
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1H2024 $m
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1H2023
$m
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Change Y-o-Y
CER basis
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Profitability
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|
|
|
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Operating profit after tax
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223
|
240
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-0.6%
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Net profit
|
3
|
6
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NA
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Contractual seravice margin balance (CSM)
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4,687
|
5,046
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-1.2%
|
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Growth
|
|
|
|
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New business ales (APE)
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876
|
845
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8.1%
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New business CSM
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573
|
737
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-11.5%
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Value of new business (VNB)
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404
|
482
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-12.5%
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Risk and Capital
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|
|
|
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Adjusted net underlying free surplus generatiion
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423
|
334
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34.5%
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Group LCSM cover ratio
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290%
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292%
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NA
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Value
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|
|
|
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Group embedded value
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5,197
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5,682
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0.2%
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Comprehensive tangible equity
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6,369
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7,172
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-3.6%
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Return on equity
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7.7%
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5.7%
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NA
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Source: FWD
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CSM balance, Group LCSM cover ratio, group embedded value, comprehensive tangible equity and return on equity 2023 values are December 2023 balances/ratios, and growth rates are shown accordingly.
CER = constant exchange rate
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Mr Huynh Thanh Phong, group CEO and executive director of FWD Group, said, “We’re pleased to report solid financial results, demonstrating organic growth and operating profitability across FWD Group. Our performance reflects the scale we’re building across our 10 markets in Asia and our focus on sustainable profitability.”
The Hong Kong & Macau segment delivered another strong performance, reflecting substantial growth from mainland Chinese visitors as well as robust local demand for quality insurance products. Thailand posted a solid contribution, reflecting a product mix shift to higher-margin products. Growth in Japan demonstrated a sustained focus on individual protection products. In Emerging Markets, strong growth was partly offset by ongoing market disruption in Vietnam.
Established in 2013, FWD Group is a pan-Asian life and health insurance business with more than 12m customers across 10 markets.