FWD Hong Kong’s APE doubled in 2023[1], continuing to be the top five insurer by business scale in Hong Kong[2]

Local market and Mainland Chinese visitor businesses thrive in tandem

HONG KONG SAR - Media OutReach Newswire - 3 April 2024 - FWD Hong Kong ("FWD") announced its 2023 annual results, which once again show that its remarkable achievements continue to drive organic growth across the business. According to the Provisional Statistics on Hong Kong's Long Term Insurance Business January to December 2023 published by the Insurance Authority:

• New business in annual premium equivalent ("APE") increased by 103% year-on-year ("YoY"), outperforming the industry average at 97%¹
• New business case count increased by 24% YoY, maintaining its fourth-place ranking in Hong Kong, with case growth outperforming the industry average of 18%¹. This number also surged by 64% compared to 2019 pre-pandemic levels, presenting a sharp contrast to the industry's 35%³ decline
• New business in APE from Mainland Chinese visitors ("MCVs") and local customers increased by 69⁴ times and 34%⁵ respectively, far exceeding the industry average (40 times and 16% respectively)

Proactively seize opportunities from MCVs and continue to strengthen business in local market to outperform peers

FWD's 2023 achievements are a testament to the effectiveness of its customer-centred, technology-driven strategy. With an expanding local market presence, FWD has successfully met the increased insurance demand from more MCVs following the border reopening with the mainland from the beginning of last year. As such, FWD has effectively attracted a growing clientele for health protection and wealth management solutions, achieving steady business growth in just a few years.

Ken Lau, Managing Director of Greater China and Hong Kong Chief Executive Officer, FWD, said, "In 2023, FWD Hong Kong's business scale and multiple performance indicators outperformed peers, showing strong growth momentum, and once again securing our position as one of the five top insurers in Hong Kong. This success serves as a testament to our business strategy, centred around the Hong Kong market while seizing opportunities in the Greater Bay Area, and has resulted in FWD being recognised as the preferred insurer by a growing number of customers. In 2024, the number of MCVs has nearly doubled in February⁶ compared to the same period a year ago, indicating substantial growth potential within the industry. This, along with a strong demand for quality insurance products to bridge protection gaps in the local market, fuels our confidence in our robust business growth this year. In March, we also launched the 'FWD Be True' brand campaign, which further demonstrates FWD's dedication and commitment to insurance excellence. FWD is committed to changing the way people feel about insurance powered by diversified insurance products and digital technology."

He added, "As a top-tier insurance company rooted in Hong Kong, FWD has always prioritised product innovation. Last year marked our introduction of the family protection concept into the market, offering health coverage not only for the insured but also for their parents and children. This year, we have actively expanded this concept into broader health solutions, exemplified by the launch of the new Voluntary Health Insurance Scheme's vFamily Medical Plan in March.⁷"

Multi-channel distribution performance continues to grow, with FWD ranking first in Hong Kong by net growth of life insurance intermediaries' headcount⁸

FWD bolstered its multi-channel distribution capabilities, creating new experiences for a wider customer base. FWD has attracted more talent and contributed to the local insurance industry through comprehensive support for the development of its tied agency. In 2023, against the backdrop of industry-wide team size reductions, the net growth of FWD's life insurance intermediaries' headcount continued to rank first in Hong Kong⁸, increasing by 11% YoY, well ahead of the industry average. The company's tied agency channel also saw new business first year premium ("FYP") ranking fifth in Hong Kong⁵, which was a key driver for the company's business growth.

FWD achieved exceptional performance in 2023 across more distribution channels and continued to be one of the top five insurers by business scale in Hong Kong²:

• New business case count through online and direct sales platforms ranks first in Hong Kong⁹.
• New business FYP of the bancassurance channel ranks second in Hong Kong, with a YoY increase of 56%, higher than the industry average growth of 4%¹⁰.
• New business FYP of the brokerage channel ranks fifth in Hong Kong, with APE increasing 241% YoY, surpassing the industry average of 179%¹¹.

Over the past year, FWD's products have been consistently recognised for its excellence by industry peers and customers alike. FWD was recently awarded "Health Insurer of the Year" at the "5-Star Insurance Award 2024" by 10Life, making it the only insurer in Hong Kong to receive this recognition for two consecutive years¹². Furthermore, FWD's six products, including voluntary medical insurance and critical illness insurance, have received 18 five-star ratings¹³, the most five-star ratings in Hong Kong. Looking ahead, FWD will continue to create innovative and quality products and services to fully support the physical health and mental well-being of the public to live life to the fullest.

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¹ Provisional Statistics on Hong Kong Long Term Insurance Business - January to December 2023, Insurance Authority of Hong Kong. The calculation combines individual and group businesses.
² According to Provisional Statistics on Hong Kong Long Term Insurance Business - January to December in 2023, Insurance Authority of Hong Kong, 《Pi Financial Services Intelligence report》- December 2022 and December 2023, as well as FWD's own assessment based on its understanding on the statistics and market information, FWD ranks top five in new business case count, net growth of life insurance intermediaries' headcount, tied agency channel new business FYP, brokerage channel new business FYP, bancassurance channel new business FYP, as well as online and direct platform new business case count.
³ Provisional Statistics on Hong Kong Long Term Insurance Business - January to December of 2019 and 2023, Insurance Authority of Hong Kong. The calculation combines individual and group businesses.
⁴ Provisional Statistics on Hong Kong Long Term Insurance Business - January to December 2023, Insurance Authority of Hong Kong. New business from Mainland Chinese visitors (MCV) refers to annual premium equivalent from MCV.
⁵ Provisional Statistics on Hong Kong Long Term Insurance Business - January to December 2023, Insurance Authority of Hong Kong.
⁶ Provisional Visitor Arrivals in February 2024, The Hong Kong Tourism Board (HKTB)
⁷ The above-mentioned product is underwritten by FWD Life Insurance Company (Bermuda) Limited (incorporated in Bermuda with limited liability) The above information is for reference only and does not contain the full terms and conditions, key product risks and full list of exclusions of the policy. For the details of benefits and key product risks, please refer to the product brochure; and for exact terms and conditions and the full list of exclusions, please refer to the policy provisions of the plan (https://www.fwd.com.hk/en/vhis/vfamily/).
⁸《Pi Financial Services Intelligence report》- December 2022 and December 2023. Non-bank insurers only.
⁹ Provisional Statistics on Hong Kong Long Term Insurance Business - January to December 2023, Insurance Authority of Hong Kong. The calculation includes long-term life individual business, general insurance among multi-channel life insurers only and is FWD's own assessment based on its understanding on market information only. FWD does not take any responsibility for any errors or omissions.
¹⁰ Provisional Statistics on Hong Kong Long Term Insurance Business - January to December 2023, Insurance Authority of Hong Kong. The calculation includes individual business only. Non-bank insurers only.
¹¹ Provisional Statistics on Hong Kong Long Term Insurance Business - January to December 2023, Insurance Authority of Hong Kong. The calculation includes individual business only.
¹² 10Life calculates the expected average coverage rate and provides ratings based on publicly available information from insurance companies. For details, please refer to the 10Life website. The information provided is a statement made by FWD based on its understanding of the information on the 10Life website, and FWD does not assume any responsibility for errors or omissions. The data is as of January 15, 2024.
¹³ Products that received a five-star rating include vBooster Medical Plan, vPrime Signature Medical Plan, and vTheOne Medical Plan (Premium and Standard Plus), Crisis OneMaster Series and Crisis USupporter / Crisis USupporter Pro. vBooster Medical Plan (Certification Number: F00069), vPrime Medical Plan (Certification Number: F00045), vPrime Signature Medical Plan (Certification Number: F00070), vTheOne Medical Plan (Premium and Standard Plus) (Certification Number: F00067), are Voluntary Health Insurance Scheme Flexi plans underwritten by FWD Life Insurance Company (Bermuda) Limited (incorporated in Bermuda with limited liability) (VHIS provider registration number: 00036). The above information is intended to be distributed in the Hong Kong Special Administrative Region only and shall not be construed as an offer to sell, a solicitation to buy or the provision of any insurance products of FWD outside the Hong Kong Special Administrative Region.
Hashtag: #FWDHongKong

The issuer is solely responsible for the content of this announcement.

About FWD Hong Kong

FWD Hong Kong is part of the FWD Group, a fast-growing pan-Asian life insurer with more than 13 million customers across 10 markets, including some of the fastest-growing insurance markets in the world. FWD is a top 4 life insurer new business case count in Hong Kong^*.

FWD Hong Kong has been assigned strong financial ratings by international agencies. It offers life and medical insurance, employee benefits, and financial planning.

FWD reached its 10-year anniversary in 2023. The company is focused on making the insurance journey simpler, faster and smoother, with innovative propositions and easy-to-understand products, supported by digital technology. Through this customer-led approach, FWD is committed to changing the way people feel about insurance.

For more information about FWD Hong Kong please visit www.fwd.com.hk.

* Source: Provisional Statistics on Hong Kong Long Term Insurance Business - January to December 2023, Insurance Authority of Hong Kong. The calculation combines individual and group businesses.