FWD Group Reports Strong Financial Growth In 2023 With Increased Profits And Business Value
FWD Group Holdings Limited, a prominent pan-Asian life insurance company, has announced its financial results for the year ending 31 December 2023, showcasing significant growth and operational success. The company reported a value of new business at US$991 million, marking a 22 percent increase from the previous year. Operating profit after tax also saw a notable rise of 27 percent, reaching US$372 million.
The group's solvency ratio stood at an impressive 292 percent, slightly up from 288 percent in 2022. Additionally, FWD secured a US$685 million revolving credit facility in February 2024, bringing its total undrawn committed credit facilities to US$1.185 billion. A milestone for the company was achieving its inaugural credit ratings in 2023, with key insurance operating entities receiving an insurer financial strength rating of "A" from Fitch and "A3" from Moody's.
Huynh Thanh Phong, Group Chief Executive Officer and Executive Director of FWD Group, highlighted the company's decade-long journey of transformation and growth. "Our 10th anniversary year was a transformational one for FWD, representing a key inflection point where all four geographic business segments delivered operating profit for the first time," he stated.
Phong further emphasized FWD's commitment to empowering customers through innovative and digitally enabled strategies. The focus remains on enhancing the company's presence and deepening its footprint across the 10 markets it operates in.
The positive financial results were driven by strong performance in various regions. The Hong Kong SAR and Macau SAR segment benefited from the return of Mainland Chinese visitors in 2023. Thailand continued to lead in bancassurance with solid contributions from agency sales channels. Japan contributed significantly as it pivoted towards individual insurance segments. The Emerging Markets business achieved its first-ever full-year operating profit after tax despite market disruptions in Vietnam.
FWD Group has also made strategic investments to strengthen its market position. It became the majority shareholder in FWD Takaful Berhad in Malaysia and increased its investment in BRI Life in Indonesia. A notable transaction was executed with Athene Holding Ltd., involving a block reinsurance deal for a portfolio of whole life insurance policies in Japan, which delivered substantial capital and risk management benefits to FWD.
Financial Metrics Overview
The table below provides a detailed comparison of key financial metrics for the years ended 31 December 2022 and 2023:
| Metric | 2022 | 2023 | Year-on-Year Change (%) |
|---|---|---|---|
| Segmental adjusted operating profit after tax (non-IFRS measure) | US$299 million | US$372 million | 26.8% |
| Value of new business | US$823 million | US$991 million | 21.9% |
| Total weighted premium income | US$6,295 million | US$6,416 million | 4.2% |
| Groupwide solvency ratio (PCR basis) | 288% | 292% | N/A |
All other financial metrics, including profitability segments, growth indicators, risk and capital management figures, as well as value assessments have been meticulously recorded, reflecting FWD Group's robust financial health and strategic foresight.
About FWD Group: Established in 2013, FWD Group is changing the way people feel about insurance through its customer-led approach and digital innovations. With over 13 million customers across 10 markets in Asia, FWD is focused on creating easy-to-understand products and simplifying the insurance experience.
The company's performance in 2023 underscores its ability to achieve organic growth and maintain operational profitability across its diverse business segments. As FWD Group continues to expand its presence and enhance its offerings, it remains dedicated to empowering customers with the protection they need for life's most significant moments.
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