FWD Group (01828) announced its interim results for 2025, reporting new business sales of $1.246 billion, representing a 38% increase compared to 2024. The new business contractual service margin reached $794 million, up 34% year-on-year, which will be accumulated in the company's total contractual service margin balance and recognized in the income statement over time under IFRS 17. The outstanding growth in new business contractual service margin demonstrates the Group's successful execution of its customer-centric strategy across Asia, achieving sustainable profitable growth. New business value also increased by 21% to $506 million.
Overall, the profit trajectory shows higher levels and greater stability, reflecting the company's increasing maturity as it scales up. After-tax operating profit grew 9% to $251 million, benefiting from continued positive contributions across the company's four regional business segments: Hong Kong SAR and Macao SAR, Thailand and Cambodia, Japan, and Emerging Markets.
Net profit reached $47 million, achieving a new high for interim results since adopting IFRS 17. Comprehensive tangible equity increased 8% to $8.15 billion, while the Group's embedded value grew 8% to $6.38 billion, reflecting value creation for shareholders during the first half of 2025.
Embedded value operating profit totaled $837 million, up 77% compared to the same period in 2024, primarily due to strong new business performance in the first half of 2025 and significant improvements in operating variances (including expenses, persistency rates, and claims). The company's commitment to expense discipline also resulted in expense savings during the first half of 2025.
According to the announcement, the growth in after-tax operating profit was primarily driven by predictable and continuously increasing contractual service margin amortization, along with improvements in operating variances and assumptions. FWD Group's four regional business segments continued to make positive contributions to after-tax operating profit. The growth in after-tax operating profit was also a key factor in the company achieving record net profit under IFRS 17.