FWD Insurance reported a dramatic 50% decrease in net profit for the first half of 2024, falling to $3 million compared to the same period last year. This sharp decline is attributed to a reduction in operating profit and a lower contractual service margin (CSM) balance.
The company’s operating profit after tax experienced a slight dip of 0.6% year-on-year, totaling $223 million. Meanwhile, the CSM balance edged down by 1.2% year-on-year to $4.69 billion.
Despite these challenges, FWD saw positive contributions from all four geographic regions it operates in—Hong Kong & Macau, Thailand & Cambodia, Japan, and Emerging Markets. The group also benefited from a record-high dividend payout of over $600 million from its geographic segments for the year to date.
On a brighter note, the new business CSM surged by 26% year-on-year to $573 million, and the value of new business rose by 14% to $404 million.
