FWD Group sees 22% YoY surge in new business value for 2023

Operating profit surged 27% YoY to $372m.

FWD Group’s value of new business increased by 22% year-on-year (YoY), reaching $991m.

Its operating profit after tax surged 27% YoY to $372m whilst solvency ratio improved to 292%, up from 288% in 2022.

Positive trends in the Hong Kong SAR and Macau SAR reporting segment, driven by the return of Mainland Chinese visitors during 2023. Strong results in Thailand were led by bancassurance and solid contributions from the agency sales channel.

Japan also made a significant contribution, continuing its strategic pivot toward individual insurance segments.

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The emerging markets business achieved its first-ever full-year operating profit after tax, despite market disruption in Vietnam, reflecting the scale being built in those markets. In line with FWD group’s investment in the region, it recently became the majority 70% shareholder in FWD Takaful Berhad in Malaysia and increased its minority investment to 44% in BRI Life in Indonesia.

In November, FWD Life Insurance executed a block reinsurance transaction in Japan, as announced by Athene Holding Ltd. The transaction aimed to reinsure an in-force block of whole life insurance policies, providing significant capital and risk management benefits to FWD. 

Whilst economically beneficial, the transaction led to timing differences under International Financial Reporting Standards (IFRS). Specifically, there was a one-time impact on FWD's 2023 IFRS net profits due to the deemed realisation of financial assets transferred to fund the transaction.