FWD Group Holdings Limited (1828.HK) Delivers Robust Q1 2026 New Business Results: Detailed Investor Analysis

Key Highlights for Investors

• New business sales up 4%: FWD Group achieved US\$720 million in new business sales (annualised premium equivalent, APE) for Q1 2026, compared to US\$679 million in Q1 2025, representing a 4% year-on-year growth at constant exchange rates (CER).
• Strong margin expansion: New business contractual service margin (NB CSM) surged by 18% year-on-year to US\$556 million, with NB CSM margin improving by 9.0 percentage points to 78.4%.
• Value of new business (VNB) increased: VNB grew by 7% to US\$314 million, with VNB margin rising to 43.5%. When excluding Thailand’s lower interest rate impact, VNB growth would have been approximately 15%.
• Product innovation: 11 new products launched across the region, targeting middle-class consumers who are increasingly anxious and underprepared for retirement.
• Multi-channel distribution strength: Bancassurance led new business sales (41%), followed by brokers/IFAs (38%) and the agency channel (15%).
• Geographic performance:
  • Hong Kong & Macau: New business sales up 1% against a record Q1 2025 (143% YoY growth in Q1 2025). Margins improved due to a more favourable product mix and expense underruns.
  • Japan: New business sales up 22%, driven by strategic expansion into retirement and savings, benefiting from a higher interest rate environment.
  • Expansion Markets: (Indonesia, Malaysia, Philippines, Singapore, Vietnam) posted 28% growth, with the strongest momentum in Singapore, Malaysia, and Philippines. Vietnam remained under headwinds.
  • Thailand & Cambodia: New business sales declined 6% due to low interest rates but product mix improved. Thailand’s VNB margin was pressured but NB CSM margin improved. FWD Thailand deepened its partnership with SCB, integrating the FWD Omne platform with SCB Easy, the bank’s mobile app serving 15M customers. Khun Knattapisit Krutkrongchai (KK) will join as CEO Thailand, effective May 11, 2026, pending regulatory approval.
• Disciplined expense management: Continued operating leverage from expense underruns supported margin expansion and CSM balance growth.
• Embedded value (EV) and capital position: Growth in NB CSM and VNB underpins higher CSM and EV operating profit. EV was impacted by macroeconomic factors, including US dollar strength and Economic value-based Solvency Regulation (ESR) in Japan.
• Stable capital generation and solvency: Despite increased global macro uncertainty in Q1, group solvency remained sound.
• Forward outlook: Company expects new business momentum to continue for FY2026, with margins likely to moderate after the strong Q1 due to seasonal effects. FWD remains confident in delivering long-term growth, value creation, and continued adoption of AI-powered digital tools.

Potentially Price Sensitive Information

• Consistent growth trajectory: Despite a very strong Q1 2025 base, FWD delivered further growth, which may be viewed positively by the market as a sign of resilience and operational strength.
• Margin expansion: Significant year-on-year increases in NB CSM and VNB margins signal improved profitability and product mix, which could positively affect share valuation.
• Japan’s strategic shift: The expansion into savings products in Japan, leveraging demographic trends and higher interest rates, positions FWD for market share gains and improved margins.
• Thailand CEO appointment: The appointment of Khun Knattapisit Krutkrongchai, a highly experienced executive, may signal a strategic pivot and renewed growth outlook in a challenging market.
• Integration with SCB: Embedding FWD Omne within SCB Easy app could accelerate customer adoption, distribution reach, and new business sales in Thailand.
• Product innovation: Launch of 11 new products and focus on the middle-class segment addresses unmet needs in retirement and financial preparedness, potentially unlocking future growth.
• Macroeconomic and regulatory impacts: EV was negatively affected by the strong US dollar and the implementation of ESR in Japan. Investors should monitor ongoing regulatory changes and currency fluctuations.
• AI and digital adoption: Continued investment in AI-powered digital tools is expected to improve distribution efficiency and customer experience, supporting long-term competitiveness.

Detailed Segment Performance and Strategic Developments

Hong Kong & Macau

Delivered solid growth (1%) in new business sales against an exceptionally high base in Q1 2025. Growth was driven by stronger onshore demand and a resilient domestic customer base. Margins improved, benefiting from product mix optimization and expense control. FWD Private remained a strong contributor.

Japan

New business sales grew by 22%, driven by the successful launch of single-premium savings products. FWD’s ability to capitalize on the ageing population and higher interest rates positions it well for further expansion. Margin improvements are expected to continue as the product mix shifts towards savings.

Thailand & Cambodia

New business sales declined by 6%, reflecting the impact of low interest rates. Efforts to improve product mix and enhance new business quality are underway, with a return to growth expected later in the year. The deepened partnership with SCB and the integration of FWD Omne into SCB Easy app are key strategic advances. The appointment of a new CEO signals leadership renewal and a focus on growth.

Expansion Markets

Achieved 28% growth in new business sales, maintaining strong momentum from 2025. Growth in Singapore, Malaysia, and Philippines outpaced headwinds in Vietnam. The multi-channel strategy proved effective, with solid sales across distribution channels.

Distribution Channels

• Bancassurance: Remains the largest channel, contributing 41% of new business sales.
• Brokers/IFAs: Accounted for 38% of new business sales, showing robust performance.
• Agency Channel: 15% contribution, with ongoing efforts to improve agent productivity and recruitment via digital platforms.

Capital, Embedded Value, and Outlook

FWD’s disciplined expense management and operating performance drove increases in CSM balance and embedded value, supporting earnings momentum. Despite economic headwinds, capital generation and solvency remained stable. The outlook for 2026 is positive, with new business sales momentum expected to continue, though margins are likely to moderate after Q1’s strong performance due to seasonal factors.

FWD’s long-term growth prospects are underpinned by opportunities in each market, its diversified distribution network, customer-centric product portfolios, and the continued integration of AI-powered digital tools.

Company Profile

FWD Group is a pan-Asian life and health insurer serving approximately 40 million customers across 10 markets. Established in 2013, FWD is listed on the Hong Kong Stock Exchange (1828.HK) and aims to change the way people feel about insurance with innovative, easy-to-understand products and a tech-enabled approach.

Disclaimer

This article is for information purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information provided herein is based on publicly available data as of 30 April 2026 and may contain forward-looking statements subject to risks and uncertainties. FWD Group Holdings Limited and its affiliates make no representation as to the accuracy or completeness of the information provided. Past performance is not indicative of future results.

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