FWD Group Holdings Ltd reported a record first-half net profit of $172 million for 2026, a 269% increase from $47 million a year earlier, as shares rose 6.6% to $31.10.
Operating profit after tax climbed 20% to $298 million, with all four business segments contributing positive results. New business sales, measured on an annualized premium equivalent basis, rose 7% to $1.35 billion, accelerating to 11% growth in the second quarter. The contractual service margin for new business increased 25% to $1.0 billion, while the value of new business grew 18% to $602 million.
Embedded value rose 5% to $6.9 billion, with underlying growth of 12% after adjusting for macro and regulatory effects. Return on tangible equity stood at 19.4%, while cash upstreamed from operating entities totaled $512 million. The group’s prescribed capital ratio was 203%, and the leverage ratio remained at 21.4%, above the 15%-20% target range.
Hong Kong and Macau reported a 6% increase in annualized premium equivalent to $679 million, with new business contractual service margin and value of new business both up 25%. Japan’s new business sales surged 29% to JPY 76 billion, supported by a 43% rise in value of new business. Thailand and Cambodia saw a 5% decline in annualized premium equivalent to $311 million but posted a 16% increase in operating profit after tax to $98 million.
Expansion markets in Southeast Asia delivered 23% sales growth to $282 million, with value of new business up 36%. Bancassurance partnerships grew to 34 across the region, providing access to over 350 million customers. The agency channel, comprising over 40,000 agents, saw productivity improve by more than 30%, with value of new business rising 2% year-on-year in the first half.
FWD’s digital initiatives included AI tools such as the agent assistant FWD Cube and Agent Guru in Japan, which more than doubled sales productivity for users. Software development teams reported a 45% productivity gain, while AI voice assistants in Thailand handled 66% of customer calls, resolving two-thirds without human intervention.
Group Chief Executive Officer Phong Tran said the results reflected strong momentum in the first full year as a listed company, citing customer focus and a scalable distribution model. Group Chief Financial Officer David Junius attributed the profit growth to disciplined execution and expense management.
