FWD Group Holdings Limited announced its first full-year results as a Hong Kong listed company for the 12 months ended 31 December 2025, reporting a record net profit of US$166 million, representing a six-fold increase compared to the previous year. The company achieved profitable growth across all key financial metrics while improving capital and cash flow generation, with operating profit after tax rising five percent to US$499 million and positive contributions from each of its four geographic reporting segments.
New business sales grew 25 percent to US$2.446 billion on an annualised premium equivalent basis, while new business contractual service margin reached US$1.476 billion with 18 percent year-on-year growth. The company maintained strong cash flow, operating cash flow positive for the second consecutive year as of 31 December 2025, and reduced its leverage ratio to 21.3 percent, approaching its target range of 15-20 percent.
Shareholder value creation indicators showed significant improvement, with comprehensive tangible equity increasing 18 percent to US$8.72 billion and Group embedded value growing 19 percent year-on-year to US$6.85 billion. The company maintained a strong capital position with a 265 percent solvency ratio. These results follow FWD Group's July 2025 initial public offering, which provided full capital market access as detailed in their corporate communications at https://www.fwd.com.
Group Chief Executive Officer Huynh Thanh Phong attributed the strong performance to successful execution of the company's customer-led strategy supported by a digitally enabled business model. "2025 was a stand-out year for FWD Group. We successfully executed our customer-led strategy, underpinned by our digitally enabled business model. Record financial results were achieved," said Phong. The company operates across 10 Asian markets serving more than 38 million customers.
The Hong Kong SAR & Macau SAR segment delivered particularly outstanding performance, driving the overall results alongside solid contributions from other regions. In Japan, FWD began diversifying beyond protection business into retirement and savings with its first yen-denominated single premium variable annuity product. Despite headwinds from a lower rate environment in Thailand, the company remains well positioned for future quality new business growth. The Emerging Markets segment, comprising five Southeast Asian markets, delivered excellent growth consistent with regional demographic, wealth creation, and digital adoption trends.
In December 2025, FWD Group was added to the Hang Seng Composite Index and the eligible securities list for the Stock Connect programme, where Mainland Chinese investors connect via the Shanghai Stock Exchange and Shenzhen Stock Exchange with Hong Kong market opportunities. The company was also included in the MSCI Hong Kong Small Cap Index in February 2026, as reported in financial market updates available at https://www.newmediawire.com.
For business leaders and technology investors monitoring Asian financial markets, FWD Group's results demonstrate how digital transformation and customer-centric strategies can drive profitability in the insurance sector. The company's performance highlights the growth potential in Asia's insurance markets, where demographic shifts and increasing digital adoption create opportunities for tech-enabled providers. FWD's successful IPO and subsequent index inclusions signal growing market recognition of its business model and growth trajectory.
Looking forward, the company remains focused on executing its strategy in high-growth Asian markets with customers at the center of operations. "With 2026 already underway, we remain firmly focused on executing our strategy as we build for the future - operating with customers at the heart of everything we do in high-growth Asian markets, with a focus on long-term sustainability and profitability," added Phong. The results position FWD Group for continued expansion in some of the world's fastest-growing insurance markets while maintaining financial discipline and shareholder value creation.
