Goldman Sachs has issued a research report indicating that FWD's new business value and contract service margin (CSM) for the previous year exceeded expectations, reflecting business growth and improved operational leverage. The firm has raised its forecasts for new business value and contract service margin for fiscal years 2026 to 2028 by 11% to 13%, while increasing its contract service profit forecast by 8% to 12%. However, Japan's regulatory shift toward an economic value-based solvency framework may adversely affect the company, leading to a 6% reduction in the embedded value (EV) forecast. Consequently, the target price has been lowered from HK$46 to HK$43, with a "Buy" rating maintained. Although FWD's performance last year fell short of expectations, management has indicated that its Hong Kong operations have achieved positive growth so far this year. As a result, the firm has maintained its annualized premium equivalent (APE) and new business value forecasts for the company.