FWD (01828) new business contractual service margin for the first three quarters increased 22% year on year to US$1.4 billion

FWD (01828) announces that during the first nine months of 2026, FWD recorded significant growth in new business contractual service margin and new business value. New business contractual service margin increased 22% year on year to US$1.4 billion, while new business value rose 18% year on year to US$878 million. The growth was driven by the continued strong momentum of the Group's diversified pan-Asian business footprint and margin improvement resulting from product mix optimisation, reflecting the Group's continued focus on enhancing new business quality. The growth in new business contractual service margin and new business value are leading indicators of long-term value creation, driving an increase in the contractual service margin balance and continued growth in embedded value. In the first nine months of 2026, the Group's new business contractual service margin margin rose approximately 12 percentage points year on year to 72.5%, while the new business margin rose more than 6 percentage points year on year to 44.9% over the same period, with new business margins improving across all business segments. The Group's total new business value rose 16% year on year in the third quarter. Against a higher 2025 comparative base (which recorded 37% year-on-year growth versus 2024), new business sales (measured by annualised new premiums) grew 1% year on year to US$1.95 billion. New business sales in the prior-year period included mid-term savings insurance in the Hong Kong and Macau segment, which accounted for approximately 30% of the segment's new business sales in the third quarter of 2025 and saw reduced sales in 2026. Excluding sales of these products, the Group's year-to-date annualised new premium growth was broadly similar to that in the first half of 2026, with the Group's annualised new premiums increasing approximately 4% in the third quarter. The Group continues to pursue a diversified distribution strategy, reaching customers across its geographic footprint through complementary distribution channels. The bancassurance channel remained the largest contributor to new business sales, supported by long-term strategic partnerships across Asia, and accounted for approximately 39% of the Group's annualised new premiums in the first nine months of 2026. The insurance brokerage/independent financial advisor channel accounted for approximately 36% of the Group's annualised new premiums, continuing to benefit from demand from affluent and high-net-worth customers as well as strong growth in new business sales in Japan. The agency channel accounted for 18% of the Group's annualised new premiums, continuing to focus on high-quality growth and enhancing agent productivity through investment in digital enablement and professional development programmes.