Morgan Stanley: Strong business performance in the last quarter for FWD (01828), rated as "hold"

Morgan Stanley released a research report stating that FWD (01828) maintained strong growth in new business sales in the third quarter, and the leverage ratio also improved. Through refinancing, the annual debt cost was successfully reduced by about $72 million, resulting in a decrease in the leverage ratio from 23.7% in the first half of the year to 21.8% at the end of September. FWD's annualized premiums for the first three quarters increased by 37%, new business value increased by 17%, and new business CSM profit increased by 27%, showing a slight slowdown compared to the growth rates of 38%, 21%, and 34% in the first half of the year. The Hong Kong and Macau markets performed the best during the period, with annualized premiums equivalent to an 85% increase, but slower than the 103% growth rate in the first half of the year. Morgan Stanley currently maintains a "hold" rating on FWD, with a target price of HK$46.5.