Q4 2025 FWD Group Holdings Ltd Earnings Call Transcript
Key Points
- FWD Group Holdings Ltd (HKSE:01828) achieved record financial results in 2025, with new business sales growing by 25% to approximately $2.4 billion.
- The company successfully executed its IPO on the Hong Kong Stock Exchange, raising $466 million, which contributed to a credit rating upgrade to A2 from Moody's.
- FWD Group Holdings Ltd reduced its leverage ratio to 21.3% by refinancing $1.15 billion of debt and using IPO proceeds to reduce leverage by $500 million.
- The company reported a record net profit under IFRS 17 of $166 million, driven by strong new business sales growth and expense discipline.
- FWD Group Holdings Ltd's diversified distribution strategy, including bank assurance and brokerage channels, contributed to significant growth, with the brokerage and IFA channel delivering 51% APE growth.
- The company faced challenges in Thailand and Cambodia, with APE declining by 6% year-on-year due to a focus on quality new business and declining interest rates.
- VNB and New Business CSM in Thailand and Cambodia declined by 18% and 16%, respectively, due to the impact of lower interest rates on margins.
- The emerging markets segment experienced headwinds in Vietnam, which somewhat offset growth in Singapore and Malaysia.
- Operating profit after tax (OPAT) in Japan declined by 5% year-on-year, mainly due to persistency variance in a runoff portfolio.
- The company expects moderate growth in new business sales in 2026 due to high base effects from 2025 and regulatory changes impacting the retail broker channel in Hong Kong.
Good morning, everyone. I'm very excited to be here today to present FWD's first set of full year results post our IPO in July 2025. I will start with providing you with an overview of our business achievements. And then I will hand over to Sid, our group CFO who will take you through key financial highlights.
2025 was a standout year for FWD Group. We successfully executed our customer-led strategy underpinned by our digitally enabled business model, achieving record financial results. The successful IPO on the Hong Kong Stock Exchange where we raised $466 million in July, shows the market's confidence in our business and in our strategy of building a leading pan-Asian insurer, offering significant growth potential in years to come.
This fulfilled a long-held objective to ensure FWD Group has full capital market access as a solid foundation for our future development and growth. This was followed by a credit rating upgrade to A2 from Moody's in the same month. In August, we completed the
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