Fitch Ratings expects FWD Group to have stronger profits this year

Bottom-line improvements will be driven by expansion in Hong Kong and Thailand.

FWD Group Holdings Limited (FWDGHL) is expected to have stronger profitability in 2025 after reporting its first net profit of $10m in 2024, Fitch Ratings said. 

The result was supported by steady new business growth, improved investment returns, and reduced one-off expenses.

Although return on equity remained negative at -1.3%, Fitch Ratings expects bottom-line improvements, driven by continued expansion in Hong Kong and Thailand, and the gradual release of margins from a 2023 reinsurance deal with Athene. 

New business metrics remained strong, with CSM and value of new business up 31% and 14% year-on-year, respectively.

Its core subsidiaries, FWD Life HK and FWD Japan, contributed over 50% of total weighted premium income. 

The group's risk asset ratio fell to 92%, aligned with its current rating profile.