FWD Group announces solid first quarter new business update

HONG KONG,May 29,2024 -- FWD Group Holdings Limited ("FWD Group" or "FWD") today announced solid first quarter new business highlights for the three months ended 31 March 2024.

Value of new business (VNB) of US$215 million,underlying[1] growth of 17 per cent compared to Q1 2023.

New business salesof US$460 million,up 10 per cent compared to Q1 2023.

Deepened Southeast Asia footprint further: FWD Group became the majority 70 per cent shareholder in FWD Takaful Berhad in Malaysia in March 2024; also increased its strategic investment to 44 per cent in BRI Life in Indonesia.

Successfully issued five-year 8.4 per cent US$900 million subordinated notes due 2029,to refinance debt maturing in July 2024.

US$685 million three-year revolving credit facility finalised in February 2024; total undrawn committed credit facilities now US$1.185 billion.

Huynh Thanh Phong,Group Chief Executive Officer and Executive Director of FWD Group,said,"We've made a solid start to 2024 as we continue to build scale in our business,deepening FWD's presence to serve customers across our 10 markets in Asia."

"We were also pleased to close our US$900 million refinancing during the quarter,which further extends our bond maturity profile. Our balance sheet strength reflects our ongoing strategy execution and disciplined approach to growth,on the path to sustainable profitability," addedHuynh Thanh Phong.

All four reporting segments – Hong Kong SAR & Macau SAR; Thailand & Cambodia; Japan; and Emerging Markets – delivered growth in new business sales and underlying[1] VNB. The results reflect continued momentum in the Hong Kong SAR & Macau SAR reporting segment,boosted by the return of Mainland Chinese visitors. Thailand's new business sales and VNB growth reflected a focus on higher-margin products. Both Japan and Emerging Markets delivered strong VNB growth.

As outlined in the FWD Group 2023 full year results announcement in March,actuarial assumptions were strengthened to reflect the latest post-COVID experience and market disruption in Vietnam. The Q1 2024 new business highlights reflect these assumptions and are not directly comparable with the reported Q1 2023 numbers.

The unaudited results are for the three months ended 31 March 2024 and compared to the same period in 2023. Growth rates are represented on a constant exchange rate basis. New business sales are calculated on an annual premium equivalent (APE),based on 100 per cent annual premiums and 10 per cent single premiums.

[1] VNB on an underlying basis assumes changes to actuarial methods and operating assumptions as of year-end 2023 to reflect latest post-COVID experience and market disruption in Vietnam are retrospectively applied and also includes costs associated with agency recruitment programmes.

About FWD Group

FWD Group is a pan-Asian life insurance business with more than 13 million customers across 10 markets,including some of the fastest-growing insurance markets in the world. The company was established in 2013 and is focused on changing the way people feel about insurance. FWD's customer-led and digitally enabled approach aims to deliver innovative propositions,easy-to-understand products and a simpler insurance experience.

For more information,please visit www.fwd.com