HONG KONG, 3 April 2017 – FWD Hong Kong & Macau (“FWD”) today announced record Value of New Business (VNB) at HK$1.127 billion, a 44% growth for 2016. The Annual Premium Equivalent (APE) grew by 36% to HK$2.629 billion. The excellent results were driven by strong business growth across all distribution channels — tied agency, bancasurrance, brokerage, and digital commerce. 

“We are pleased that our dynamic business strategy produced commendable results in 2016, in particular the record sales and strong VNB growth,” said David Wong, Chief Executive Officer of FWD Hong Kong & Macau. “The keys to our continued success lie in our commitment to providing customers with innovative products and services, and creating new insurance experience by leveraging technology through our expanding multi-channel distribution.” 

Business Performance 
The strong performance across all the three business units of FWD in Hong Kong saw a profit before tax of HK$284 million¹ in 2016. 

• The life insurance business, including Macau’s operations, accounted for 86% of FWD’s profit in 2016. It achieved 44% growth in VNB due to increasing demands for participating and health products, and through an expanded distribution capacity of both traditional channels and digital commerce.
• The general insurance business saw continued growth with 5% rise in gross written premiums driven mainly by medical and personal accident products. The business also recorded 22% growth in customer acquisition.
• The pensions business was again a stable source of profit generation with the Assets under Management (AuM) of Mandatory Provident Funds (MPF) portfolios increasing by 11% to HK$3.645 billion, accompanied by HK$602 million of gross contribution.

FWD achieved promising performance across all distribution channels: 

• Tied agency expanded for 11% to over 2,400 agents, among which 12% were MDRT qualified. 
• Brokerage once again made a significant VNB growth at 94%, and became the second biggest distribution channel of FWD Hong Kong. 
• Bancassurance sustained solid growth in a highly competitive environment with its VNB increasing by 20% as a result of a diversified product mix with a focus on participating products. 
• iFWD digital commerce platform (i.fwd.com.hk) recorded brilliant results in both life and general insurance businesses, generating over HK$140 million of APE and continued to rank number one in Hong Kong’s direct-sale life insurance market. For general insurance the platform collected over HK$5 million of new business premiums with over 40,000 policies underwritten. 

Industry Recognitions
FWD Hong Kong received remarkable recognitions for its InsurTech development, such as:

• FWD Drivamatics application: Recently honoured the Best FinTech Grand Award and Gold Award in the Best FinTech (Banking, Insurance and Capital Market) Award by Hong Kong ICT Awards 2017. The app also won three awards in MOB-EX Awards 2017.  
• iFWD digital commerce platform was honoured as Digital Insurer of the Year at the BENCHMARK Wealth Management Awards 2016.
  
  

2017 Strategic Initiatives 
While continuing to reinforce our balanced, multi-channel distribution in 2017, FWD will be driving growth with three key strategic focuses: InsurTech, health solutions, and customer experience. 

“InsurTech will continue to be the company’s key development area with a focus on mobile services, Internet of Things (IoT), and Big Data analytics. Riding on the success of FWD Drivamatics application and MotorSmart Insurance, as well as the instant withdrawal service enabled by integrating Tap & Go Payment Service to our iFWD digital commerce platform, we will soon be launching a series of innovative services to make insurance more convenient and easy to use as a part of daily life,” remarked David. 

Paul Tse, Chief Marketing Officer, FWD Hong Kong & Macau, said, “This year FWD will continue to emphasise health solutions. While leveraging Big Data analytics to better understand our customers and anticipate protection needs, we will design more customised, collaborated and flexible offerings.” 

“For transforming people’s experience with insurance, a case in point is the brand new FWD MAX lifestyle reward programme. It aims to encourage and reward people to live their passions through a suite of fun and unique contents and experiences related to Sports & Action, Music & Arts, Travel & Adventure, and Food & Wine! FWD MAX is leveraging technology and the synergy of partnership to make insurance more interesting as an integral part of people’s daily life”, added Paul.

Notes:

1. Profit before tax (PBT): IFRS figures, excluding one-off items, holding company expenses and inter-company elimination.

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About FWD Hong Kong & Macau

FWD spans Hong Kong & Macau, Thailand, Indonesia, the Philippines, Singapore and Vietnam. In Hong Kong, FWD offers life and medical insurance, general insurance, employee benefits, pension, and financial planning. The life insurance and general insurance operating entities have been assigned strong financial strength ratings by international rating agencies — FWD Life Insurance Company (Bermuda) Limited is rated “A3” by Moody’s and “A” by Fitch; and FWD General Insurance Company Limited is rated “A” by Fitch.

FWD is focused on creating fresh customer experiences, with easy-to-understand products, supported by leading digital technologies. Through this customer-led approach, FWD will achieve its vision to become the leading pan-Asian insurer that changes the way people feel about insurance.

Established in Asia in 2013, FWD is the insurance business arm of investment group, Pacific Century Group.

For more information please visit WWW.FWD.COM.HK or WWW.FWD.COM.MO.