FWD Group reports 18% rise in new business value for first three quarters
FWD Group's new business value rose 18 per cent to about US$880m in the first three quarters. The insurer expects fourth-quarter profit margins to decline due to seasonal factors, particularly in Hong Kong and Macau.
FWD Group reported strong new business earnings in the first three quarters of this year, driven by a shift in product mix, the company announced on 3 November.
On a constant exchange rate basis, the group’s new business contractual service margin rose 22 per cent to US$1.4bn in the January-to-September period. New business value increased 18 per cent to about US$880m, while the new business profit margin improved by 6.3 percentage points to 44.9 per cent. New business sales, measured by annualised new premiums, edged up 1 per cent to US$1.95bn.
In the third quarter alone, new business value climbed 16 per cent year on year, and annualised new premiums rose about 4 per cent.
FWD said it expects new business sales growth for the full year to be broadly in line with the performance guidance issued in the first half. It also forecast that the full-year new business contractual service margin and new business profit margin would improve year on year. However, due to seasonal factors, particularly in Hong Kong and Macau, the company said profit margins are expected to decline in the fourth quarter.