Earnings release
Page 1
This announcement is for information purposes only and does not constitute an invitation or offer by any person to acquire, purchase or subscribe for securities. This announcement is not, and is not intended to be, an offer of securities of the Company for sale in the United States. The securities of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the U.S. Securities Act. There is not, and is not intended to be, any public offering of the securities of the Company in the United States. Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. FWD Group Holdings Limited 富 衛 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) Stock code: 1828 Interim results for the six months ended 30 June 2026
Page 2
FWD Group reports record profit amid continued growth Net profit after tax tripled to US$172 million, with earnings per share of US$0.13 Hong Kong, 26 August, 2026 – FWD Group Holdings Limited (“FWD Group” or “FWD”) today announced interim results for the six months ended 30 June 20261. • New business sales were up seven per cent on the prior corresponding period to US$1.35 billion on an annualised premium equivalent (APE) basis. New business contractual service margin was US$996 million, with year-on-year growth of 25 per cent. • Operating profit after tax was up 20 per cent to US$298 million with positive contributions from all four reportable segments: Hong Kong SAR & Macau SAR; Thailand & Cambodia; Japan; and Expansion Markets. Net profit after tax of US$172 million was a three-fold increase on the first half of 2025 and represents another record result. • Shareholder value creation indicators continued to trend positively, with comprehensive tangible equity up five per cent to US$8.83 billion and Group embedded value up five per cent to US$6.95 billion compared to 31 December 2025. FWD Group retained a solvency ratio2 of 203 per cent, after the adoption of economic value-based solvency regulation in Japan. • Announced a key hire in May for the high-net-worth (HNW) business, which serves the global HNW insurance market with diversified asset allocation, wealth management, and legacy planning. • Received globally recognised certification in July for the development, procurement, deployment, and use of artificial intelligence (AI) systems, reflecting the growing maturity and responsible use of AI at FWD Group with the ISO/IEC 42001 standard achieved from the International Organisation for Standardisation/ International Electrotechnical Commission. Huynh Thanh Phong, Group Chief Executive Officer and Executive Director of FWD Group, said, “FWD Group had a very strong start to our first full year as a listed company. Once again, we’ve demonstrated our ability to sustain growth, and to convert that growth into rising bottom-line profitability, while expanding margins. This was driven by the diversification built into our geographic footprint and multi-channel distribution model over the past 13 years, as well as a capital structure that positions FWD Group well for the future.” In the company’s home market of Hong Kong SAR, momentum continued despite record prior-year growth, supported by resilient domestic demand and the city’s role as one of the world’s largest cross-border wealth hubs. 1
Page 3
Excellent growth in Japan was driven by the company’s expansion into the savings and retirement needs segment in July 2025, complementing its existing protection business as a rapidly ageing society continues to fuel the longevity economy. In Thailand, the focus on profitable new business continued in the company’s market- leading exclusive bancassurance partnership with Siam Commercial Bank and agency distribution channels. The transition to a new Chief Executive Officer for Thailand was completed in May when Khun Knattapisit Krutkrongchai (KK) joined the company. Strong growth in Expansion Markets – comprised of Indonesia, Malaysia, the Philippines, Singapore, and Vietnam – was achieved despite the macroeconomic uncertainty in some countries in this segment. “These results are the latest example of the strong track record we’re building as a listed company serving more than 40 million customers across 10 markets in Asia. At FWD Group, we remain heavily focused on anchoring around the customer – aided by the golden age of transformational technological innovation that we’re living in,” added Huynh Thanh Phong. Across the region, 21 new products were introduced in the first half of 2026 in response to emerging customer needs. The FWD Group consumer outlook survey released in February 2026, prior to the outbreak of conflict in the Middle East and the associated global energy economic shocks, showed that most of Asia’s middle-class feel financially anxious and underprepared for retirement. About FWD Group FWD Group (1828.HK) is a pan-Asian life and health insurance business that serves over 40 million customers across 10 markets, including BRI Life in Indonesia. FWD’s customer- led and tech-enabled approach aims to deliver innovative propositions, easy-to- understand products and a simpler insurance experience. Established in 2013, the company operates in some of the fastest-growing insurance markets in the world with a vision of changing the way people feel about insurance. FWD Group is listed on the Hong Kong Stock Exchange under the stock code 1828. For more information, please visit www.fwd.com 1 The results are for the six months ended 30 June 2026 and are compared to the same period in 2025. Growth rates are represented on a constant exchange rate (CER) basis. The results are based on the unaudited interim condensed consolidated financial statements and embedded value supplementary report for the first half of 2026, unless otherwise stated. Operating profit after tax and net profit after tax represent the amounts attributable to equity holders of the company and are presented net of non-controlling interests. New business sales are calculated on an annualised premium equivalent (APE) basis, based on 100 per cent annualised first year premiums and 10 per cent single premiums. Group LCSM cover ratio, group embedded value and comprehensive tangible equity 2025 values are December 2025 balances/ratios and growth rates are shown accordingly. 2 Prescribed capital requirement (PCR) basis 2
Page 4
Chief Executive Officer report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Chief Financial Officer report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Management discussion and analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Operational highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Operational highlights — geographical markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Operational highlights — distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Compliance with Corporate Governance Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Compliance with Model Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Changes in Directors’ information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Directors’ and the chief executive’s interests and short positions in shares, underlying shares and debentures of the Company and its associated corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Interests and short positions in Shares and underlying Shares of persons other than the Directors or the chief executive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Purchase, sale or redemption of the listed securities of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Share-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Interim condensed consolidated financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Independent review report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Interim consolidated income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Interim consolidated statement of comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Interim consolidated statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Interim consolidated statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Interim consolidated statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Notes to the interim condensed consolidated financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Embedded value supplementary report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Independent report on the review of supplementary embedded value information . . . . . . . . . . . . . . . 136 Supplementary embedded value information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 Information for Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Contents 3
Page 5
A strong start to 2026 FWD Group had a very strong start to our first full year as a listed company. The diversification that we’ve built into our geographic footprint and multi-channel distribution model over our 13- year history certainly shone through in our first-half performance. These results are the latest example of the strong track record we’re building as a listed company that is serving more than 40 million customers1 across 10 markets in Asia. Building a track record of growth with profitability Once again, FWD Group has not only demonstrated its ability to sustain growth, but to convert that growth into rising bottom-line profitability, while expanding margins. Net profit after tax (NPAT) tripled to US$172 million or earnings per share of US$0.13. This was driven by our underlying business performance as well as a capital structure that positions FWD Group well for the future. Our new Group Chief Financial Officer (CFO), David Junius, outlines the results in more detail in his first interim report which follows this letter. Diversified geographic footprint in Asia’s growth markets In our home market of Hong Kong SAR, growth continued – even when compared to the record prior year – underlining its global significance as one of the world's largest cross-border wealth hubs. While Chinese mainland visitors – accessing differentiated product features, multi- currency options, and relatively attractive interest rates – are an important segment for the Hong Kong insurance market, it’s one of many drivers of demand. Hong Kong’s sophisticated economy and global financial centre status also attracts international clients from across Asia and beyond seeking legacy planning and diversification. And of course, the ageing demographics in the domestic customer base is driving a greater need for healthcare, financial protection, and planning. The demand we saw in Japan, where the world’s most rapidly ageing society is fuelling the longevity economy, reflected the financial needs of its growing senior population. Our strategy to expand from protection products into savings last year paved the way to serve customers in new and relevant ways. This growth is already evident in our results. In Southeast Asia, several markets faced varying degrees of economic uncertainty and volatility, such as Thailand and some Expansion Markets segment countries. Our new Chief Executive Officer for Thailand, Khun Knattapisit Krutkrongchai (KK), joined us in May and is focused on growing profitable new business through nurturing our market-leading bancassurance and agency distribution channels. Within Expansion Markets, we continue to see substantial opportunities, with strong growth posted by Singapore and Malaysia in particular during the first half. Our market leadership in the Philippines continued with number one rankings in both new business sales in the first half 2, and in the recent Million Dollar Round Table (MDRT)3 results, which celebrate excellence among financial advisors globally. The joint venture we have with BRI Life in Indonesia maintained its number one bancassurance position4 in the first half of the year. Attracting and developing the talent shaping our future Charting the next phase of FWD Group’s growth and development draws heavily on the experience and talent we already have in the company, which we actively cultivate at all levels. Expanded roles were recently taken up by Lee Yen Ho (Group Chief Business & Operations Chief Executive Officer report 4 1 Including customers from BRI Life in Indonesia. 2 According to Insurance Commission, in terms of new business annual premium equivalent – singleton basis, for the first half of 2026. 3 Based on statistics published by MDRT as of July 2026. 4 According to Indonesian Life Insurance Association (Asosiasi Asuransi Jiwa Indonesia), measured in new business sales, for the first half of 2026.
Page 6
Officer) and Ryan Kim (Group Chief Technology & Digital Officer), with Jeffrey Woo assuming a new position as President Director of FWD Indonesia. For a company as dynamic and ambitious as FWD Group, it’s also important to be able to attract top talent. In addition to David Junius and KK, we also welcomed additional high-quality senior hires this year including Alex Wong (Group Chief Actuary) and Mark Bensman (Chief Officer, FWD Global High Net Worth) who both joined us from global financial institutions. Opportunities amidst volatility Looking ahead, it’s very clear that uncertainty in the world focuses consumers even more firmly on the importance of financial security and resilience. That’s why we introduced 21 new products during the first half of the year, and refreshed another 22 to reflect changing customer needs. While shocks can of course constrain the ability for consumers to act in the short term, over the longer term, we’re confident that insurance will become even more relevant to the emerging middle classes in Asia and growing HNW segments globally. Refreshing our strategy as the industry challenger Our recent strategy refresh echoes these themes and trends. The FWD Group vision of changing the way people feel about insurance remains the same. So too does our commitment to operating in high-growth Asian markets and nurturing our unique, entrepreneurial spirit and culture. Areas where we will place ongoing strategic focus and investment in the future span: building tailored distribution relationships in local markets; innovating further with leading technology; striving for outstanding customer experiences; and continuing to explore new models that challenge the convention. This includes leveraging our roots as an innovative pan-Asian insurer, headquartered in the global financial centre of Hong Kong, to capture the international expansion opportunity in HNW. We believe the significant global wealth creation and intergenerational wealth transfer trends will continue to open up new avenues of growth for diversified asset allocation, wealth management, protection, and legacy planning. Of course, continuous investment in risk management and compliance capabilities remain top priorities for our growing business, to ensure we meet the high standards expected of us. Across our business, we have enhanced our compliance programmes, continued to strengthen our three lines of defence risk management model, and further leveraged technology in areas like fraud prevention and anti-money laundering. Outlook In closing, thank you to our shareholders for the support and faith you’ve shown in us in our first year as a listed company. We live in dynamic and uncertain – but incredibly interesting – times. No matter what’s going on in the world around us, at FWD Group we remain heavily focused on anchoring around the customer – aided by the transformational technological developments of the golden age of innovation that we’re living in. With the experience, ambition, and energy of our team, I’m confident we’ll continue to differentiate our brand, propositions, and distribution and, in turn, continue changing the way people feel about insurance in Asia. Huynh Thanh Phong, OBE Group Chief Executive Officer 25 August 2026 Chief Executive Officer report 5
Page 7
FWD Group delivered a strong set of results in the first half of 2026, reflecting a disciplined balance between growth, profitability and capital management, reinforcing the Group’s commitment to sustainable long-term value creation for shareholders. Growth In the first half of 2026, FWD’s new business sales (APE) increased 7 per cent year-on-year to US$1,348 million, with broad-based growth driven by strong momentum across most markets and continued execution across our diversified distribution platform. This performance was achieved despite heightened market uncertainty and geopolitical tensions in the second quarter, particularly across global energy markets. New business contractual service margin (NB CSM) increased 25 per cent year-on-year to US$996 million, driven by APE growth and margin expansion through a more favourable product mix, reflecting the Group’s continued focus on the quality of new business. Value of new business (VNB) increased by 18 per cent year-on-year to US$602 million, despite the adverse impact of the lower interest rate environment in Thailand. Profitability The Group’s profitability in the first half of 2026 reflects the strength of FWD’s operating model and disciplined execution. Operating profit after tax (OPAT) 1 grew by 20 per cent to US$ 298 million ( OPAT per share 2 of US$ 0.23) supported by higher contractual service margin (CSM) release from our growing in-force business , an improvement in claims variances and disciplined expense management. All four segments were profitable in the first half of 2026, demonstrating the Group’s ability to grow sustainably. The CSM balance increased by 13 per cent to US$7,219 million as at 30 June 2026 compared to 31 December 2025, supported by strong new business CSM generation. NPAT3 reached a record US$172 million for the first half of 2026 (NPAT per share of US$ 0.134), reflecting the continued maturity of the business. Operating discipline and efficiency remain key contributors to profitability, supporting earnings growth and overall operating performance. Value The Group's embedded value (EV), net underlying free surplus generation (UFSG) and solvency ratio (Group Local Capital Summation Method (LCSM) cover ratio on prescribed capital requirement (PCR) basis) were impacted by one-off adjustments following the implementation of the Japan Economic value-based Solvency Regulation (ESR) for the fiscal year ended 31 March 2026. This reduced EV by US$151 million, net UFSG by US$74 million and the Group LCSM cover ratio (PCR basis) by 55 percentage points. The Group is supportive of the transition of the Japan solvency regime to ESR, as the economic principles underpinning it are aligned with the Group's risk management philosophy. Importantly, the transition does not alter the underlying economics of the business, and the Group does not anticipate any additional constraints on financial flexibility or any material changes to holding company liquidity. Chief Financial Officer report 6 1 Operating profit after tax represents the amounts attributable to Equity Holders of the Company, and is presented net of non-controlling interests. 2 Adjusted basic operating profit after tax per share. Refer to the section headed “Management discussion and analysis — Profitability” for more details. 3 Net profit after tax is profit attributable to Equity Holders of the Company, and is presented net of non-controlling interests. 4 Adjusted basic earnings per share. Refer to the section headed “Management discussion and analysis — Profitability” for more details.
Page 8
As at 30 June 2026, the Group reported CTE of US$8,825 million and EV of US$6,949 million. The Group’s commitment to creating sustainable shareholder value is reflected in continued growth in both CTE and EV. While reported balances were tempered by macroeconomic headwinds, and for EV, the transition to ESR, the underlying business continued to show strong momentum. Excluding these external impacts, CTE and EV grew by 11 per cent and 12 per cent , respectively, supported by a 15 per cent increase in EV operating profit in the first half of 2026. Risk & Capital Despite heightened macroeconomic uncertainty and geopolitical tensions, the Group’s strong financial performance was reflected in its capital position and strong cash generation . The Group also maintains a high-quality, fixed income-focused portfolio, diversified asset allocation and a disciplined ALM framework, supporting stable performance across market cycles with a clear focus on capital preservation and consistent returns. The Group continues to monitor potential effects from a more prolonged period of economic weakness. The Group LCSM cover ratio (PCR basis) was 203 per cent as at 30 June 2026. The reduction from 31 December 2025 mainly reflects the adoption of ESR. Excluding opening adjustments, net UFSG grew double-digits year-on-year, reflecting strong earnings emergence and ongoing capital optimisation. Cash generation remained strong, with net remittances of US$ 512 million in the first half of 2026, including another record contribution from Thailand. This supported positive net operating cash flows at the holding company during the period. The Group continued the simplification of its capital structure by redeeming its US$200 million perpetual capital securitie s on 14 August 2026. This redemption was funded by the July 2026 issuance of Singapore $270 million 5.75-year subordinated capital securities with a maturity date of 14 April 2032, providing the Group with annual debt-servicing savings of approximately US$6.7 million1 and further diversified the Group’s debt investors by attracting new Singapore dollar participants. Combined with the deleveraging and refinancing undertaken after our initial public offering on 7 July 2025, this has reduced the Group’s annual debt-servicing cost by approximately US$78 million. The Group is also well placed to capture efficiencies from technology and AI while building on its financial strength. Investment to date has mainly focused on customer and agency applications. The Group remains focused on delivering profitable growth, further increasing capital and cash generation, and improving efficiency. The continued deployment of technology and AI across the business is expected to complement these efforts, supporting sustainable free surplus generation and long-term shareholder value. I am excited to join FWD at an important phase in the Group's development. We are well on our way to building on our track record of profitable growth and margin expansion across some of the world's most attractive life, retirement and health insurance markets, while maintaining a disciplined approach to risk management. Together with my colleagues across the Group, we will continue to focus on changing the way people feel about insurance. David Junius Group Chief Financial Officer 25 August 2026 Chief Financial Officer report 7 1 Estimated annual savings of approximately US$6.7 million from refinancing US$200 million perpetual securities at 6.675% with SG$270 million subordinated dated capital securities at 3.18%, utilising a USD/SGD exchange rate of 1.29.
Page 9
Growth rates are on a constant exchange rate (CER) basis, unless otherwise stated, and figures may not be additive due to rounding. Growth New business performance by segment Six months ended 30 June CER AER US$ millions, except for percentages 2026 2025 YoY YoY Annualised premium equivalent (APE) Hong Kong & Macau 679 640 6% 6% Thailand & Cambodia 311 311 (5%) —% Japan 76 63 29% 21% Expansion Markets 282 232 23% 22% Total APE 1,348 1,246 7% 8% New business contractual service margin (NB CSM) Hong Kong & Macau 502 400 25% 25% Thailand & Cambodia 241 199 15% 21% Japan 121 106 22% 14% Expansion Markets 133 89 52% 50% Total NB CSM 996 794 25% 25% NB CSM margin Hong Kong & Macau 74.8% 63.2% 11.6 pps 11.6 pps Thailand & Cambodia 77.6% 64.7% 12.9 pps 12.9 pps Japan 158.2% 167.1% (9.0) pps (8.9) pps Expansion Markets 48.8% 39.8% 9.3 pps 9.0 pps Total NB CSM margin 74.9% 64.7% 10.6 pps 10.2 pps Value of new business (VNB) Hong Kong & Macau 332 267 25% 25% Thailand & Cambodia 139 137 (3%) 2% Japan 59 44 43% 34% Expansion Markets 78 58 36% 35% Operating entities total 609 506 20% 20% Less: Global minimum tax provision (6) n/a n/a n/a Total VNB 602 506 18% 19% New business margin Hong Kong & Macau 48.9% 41.7% 7.2 pps 7.2 pps Thailand & Cambodia 44.8% 44.1% 0.8 pps 0.7 pps Japan 77.3% 69.7% 7.7 pps 7.6 pps Expansion Markets 27.8% 25.1% 2.7 pps 2.8 pps Operating entities total 45.2% 40.6% 4.6 pps 4.6 pps Less: Global minimum tax provision nm n/a n/a n/a Total new business margin 44.7% 40.6% 4.1 pps 4.1 pps Management discussion and analysis 8
Page 10
Hong Kong & Macau APE in the Hong Kong & Macau segment increased by 6 per cent in the first half of 2026, despite a high base of comparison where APE grew by 103 per cent in the first half of 2025 compared with the same period in 2024. This growth was supported by sustained customer demand and a continued focus on enhancing profitability through lower endowment sales. The segment’s NB CSM and VNB increased by 25 per cent to US$502 million and 25 per cent to US$332 million, respectively, in the first half of 2026 compared with the same period in 2025, primarily driven by higher margins as a result of a favourable product mix shift. Growth in the first half of 2026 was primarily driven by stronger onshore demand, reflecting the stability and resilience of the domestic customer base. More than half of FWD Hong Kong & Macau’s VNB was achieved domestically. The Hong Kong & Macau segment continues to focus on its multi-channel distribution s trategy with VNB growth across all channels. Thailand & Cambodia The Thailand & Cambodia segment is the Group’s second largest segment in terms of new business sales . Despite a 5 per cent decline in APE in the first half of 2026 compared with the same period in 2025 , the segment’s NB CSM increased by 15 per cent to US$ 241 million. This reflects the segment’s continued focus on developing quality new business with favourable product mix shift, which primarily contributed to NB CSM margin improvement. VNB declined by 3 per cent to US$ 139 million in the first half of 2026 , compared with the same period in 2025 . While product mix contributed 5.5 percentage points to new business margin improvement, this was more than offset by the low interest rates environment, which had a negative 8.0 percentage points impact on new business margin. Excluding the low interest rates economic effect, VNB growth for the first half of 2026 was 15 per cent compared with the same period in 2025. FWD Thailand is the leading bancassurer in the market through its partnership with Siam Commercial Bank (SCB)1. The agency channel continues to build a high-quality, digitally-enabled agency force through the FutureMe programme, supporting recruitment while enhancing long-term productivity. Japan FWD Japan delivered significant growth, with APE growing 29 per cent to US$76 million in the first half of 2026 compared with the same period in 2025 . This was driven by Japanese Yen Single Premium Annuity (JSPA) product, reflecting strong market momentum for savings and retirement solutions in a high interest rate environment and the structural tailwind from Japan’s ageing population. The growth in the segment’s APE also resulted in a 43 per cent increase in VNB to US$ 59 million in the first half of 2026 compared with the same period in 2025 , and NB CSM grew 22 per cent to US$121 million in the first half of 2026 compared with the same period in 2025. Expansion Markets The Expansion Markets segment reported strong APE growth of 23 per cent to US$282 million in the first half of 2026, compared with the same period in 2025 . Growth in this segment was driven by strong sales of investment linked products in the brokerage/IFA channel in Singapore, increased sales to affluent customers in the Philippines and a growing digital commerce channel in Malaysia. This was partially offset by continued industry headwinds in Vietnam. The segment’s NB CSM and VNB grew 52 per cent and 36 per cent to US$ 133 million and US$ 78 million, respectively, in the first half of 2026 compared with the same period in 2025 . The higher growth in NB CSM compared with VNB was supported by lower expense overrun. Management discussion and analysis 9 1 According to Thai Life Assurance Association (TLAA), for the first half of 2026.
Page 11
Profitability Operating profit after tax OPAT1 was US$298 million in the first half of 2026 and increased by 20 per cent compared with the same period in 2025 , driven by growth in CSM release, improvement in claims variances and disciplined expense management. The three main components of OPAT are shown in the table below. Insurance service result increased by US$ 122 million to US$ 475 million in the first half of 2026 , primarily driven by higher CSM release from new business and in-force growth, together with favourable claims variances. Net investment result was US$90 million in the first half of 2026, with methodology changes to long-term hedge costs impacting the decrease compared to the same period in 2025. Other revenue and expenses were US$(172) million in the first half of 2026 compared with US$(154) million in the same period in 2025 . Non-attributable expenses were marginally lower in the first half of 2026 , reflecting disciplined expense management across Business Units and Group Office. Net other income and expenses in the first half of 2026, when comparing with the same period in 2025, were affected by a methodology refinement made in the second half of 2025 in the Expansion Markets segment. Six months ended 30 June US$ millions, unless otherwise stated 2026 2025 CSM release 421 336 Operating variances 53 9 Risk adjustment release 36 35 Others (35) (27) Insurance service result 475 353 Investment return 1,372 974 Net insurance/reinsurance finance expenses (1,282) (839) Net investment result 90 135 Non-attributable expenses (180) (182) Net other income and expenses 8 28 Other revenue and expenses (172) (154) Operating profit before tax 393 334 Operating tax (97) (89) Operating profit after tax 296 245 Operating profit after tax attributable to: Equity Holders of the Company 298 251 Shareholders of the Company 291 214 Perpetual securities 7 37 Non-controlling interests (2) (6) Operating profit after tax 296 245 Adjusted basic OPAT per share (US$) (i) 0.23 0.18 Note: (i) The adjusted weighted average number of ordinary shares outstanding for the six months ended 30 June 2026 was 1,277,830,325 (for the same period in 2025: 1,178,205,907). The weighted average number of ordinary shares outstanding for the six months ended 30 June 2025 was adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as at 1 January 2025. Refer to note 4.4 and 24 in the interim condensed consolidated financial statements for further information. Management discussion and analysis 10 1 Represents operating profit after tax attributable to Equity Holders of the Company, and is presented net of non-controlling interests.
Page 12
OPAT by segment FWD Hong Kong & Macau’s OPAT increased by 32 per cent to US$164 million in the first half of 2026 compared with the same period in 2025 , primarily due to higher CSM release driven by an increase in the CSM balance from in-force and new business growth. FWD Thailand & Cambodia’s OPAT increased by 16 per cent to US$98 million in the first half of 2026 compared with the same period in 2025, supported by growing CSM release and improved claims variances. FWD Japan’s OPAT declined by 3 per cent to US$ 85 million in the first half of 2026 compared with the same period in 2025, primarily due to adverse persistency variance in a run-off portfolio. The Expansion Market s segment’s OPAT increased by 14 per cent to US$ 43 million in the first half of 2026 compared with the same period in 2025, driven by higher CSM release and improved persistency. Corporate and Others’ operating loss after tax increased by 7 per cent to US$ 92 million in the first half of 2026 compared with the same period in 2025 , primarily from the recognition of global minimum tax (GMT). Group Office operating expenses remained broadly flat year-on-year. Six months ended 30 June CER AER US$ millions, except for percentages 2026 2025 YoY YoY Hong Kong & Macau 164 125 32% 32% Thailand & Cambodia 98 81 16% 22% Japan 85 93 (3%) (8%) Expansion Markets 43 38 14% 8% Corporate and Others (92) (86) (7%) (7%) OPAT (i) 298 251 20% 19% Note: (i) Represents operating profit after tax attributable to Equity Holders of the Company, and is presented net of non-controlling interests. Operating expenses and expense ratio Operating expenses increased by 2 per cent to US$541 million in the first half of 2026 , compared with the same period in 2025 , mainly from business growth, with total weighted premium income (TWPI) increasing by 11 per cent to US$4,353 million. The expense ratio in the first half of 2026 improved by 120 basis points to 12.4 per cent compared with the same period in 2025 , reflecting disciplined expense management across the Business Units and Group Office. Six months ended 30 June CER AER US$ millions, except for percentages 2026 2025 YoY YoY Operating expenses (i) 541 530 2% 2% TWPI (i) 4,353 3,894 11% 12% Expense ratio (ii) 12.4% 13.6% n/a (1.2) pps Notes: (i) Represents the amounts attributable to Equity Holders of the Company. (ii) Expense ratio is operating expenses expressed as a percentage of TWPI for the relevant period, representing the amounts attributable to Equity Holders of the Company. Management discussion and analysis 11
Page 13
Contractual service margin CSM as at 30 June 2026 was US$7,219 million, an increase of US$657 million from 31 December 2025. Operating change in CSM increased to US$ 764 million in the first half of 2026 from US$ 607 million in the same period in 2025, primarily due to higher new business contribution. The CSM release rate remained stable year- on-year. Operating variances remained positive in the first half of 2026. Positive economic variances were mainly due to favourable unit-linked fund performance in the first half of 2026. The US$153 million foreign exchange translation loss was mainly due to the strengthening of the US dollar against both the Japanese Yen and Thai Baht. Six months ended 30 June US$ millions, except for percentages 2026 2025 Opening CSM 6,562 5,174 New business CSM (i) 979 757 Expected return (ii) 199 155 Operating variances and assumption changes 6 31 CSM release (421) (336) Operating change in CSM 764 607 Economic variances and assumption changes 24 (6) Foreign exchange (153) 212 Others 23 9 Closing CSM 7,219 5,996 CSM release rate (iii) 11% 11% Notes: (i) New business CSM prepared under IFRS 17. Refer to note 15 in the interim condensed consolidated financial statements for further information. (ii) Expected return refers to the accretion of interest on general measurement model contracts, together with the expected return related to variable fee approach contracts based on the expected long-term investment return. (iii) Calculated as CSM release divided by closing CSM balance (excluding CSM release and foreign exchange movement) and is shown on an annualised basis. Net profit after tax NPAT1 increased significantly to US$ 172 million in the first half of 2026 from US$47 million in the same period in 2025, driven by higher CSM release, improvement in claims variances, lower financing costs, continued expense discipline and more favourable market related factors, including higher returns on Thailand public equities and realised gains on bonds disposals. Non-operating: Market related NPAT includes the short-term fluctuation impact of market movements related to equity securities, interests in investment funds, and investment property backing non-participating business and shareholder surplus, measured against long-term investment return assumptions. Short-term fluctuations in investment return resulted in losses of US$27 million in the first half of 2026 , mainly due to lower returns on private equities compared with the expected long-term investment returns, partially offset by positive impact from Thailand equities gains. Other non-operating investment returns contributed to a gain of US$ 24 million in the first half of 2026, mainly arising from realised gains on disposal of bonds in FWD Thailand. Non-operating: Non-market related Non-market related expenses were US$ 132 million in the first half of 2026 and remained broadly stable year-on- year compared with the same period in 2025 . The Group’s finance costs related to borrowings were lower in the first half of 2026 following the refinancing activities in 2025. IPO related costs in the first half of 2026 relate to amortisation of IPO incentives granted under the Share Award Plan in December 2025. Management discussion and analysis 12 1 Represents net profit after tax attributable to Equity Holders of the Company, and is presented net of non-controlling interests.
Page 14
Six months ended 30 June US$ millions, unless otherwise stated 2026 2025 Operating profit after tax 296 245 Tax on operating profit before tax 97 89 Operating profit before tax 393 334 Non-operating items: Short-term fluctuations in investment return related to equity securities, interests in investment funds and investment property (27) (70) Other non-operating investment return 24 (26) Loss component on onerous contracts 1 5 Market related non-operating items (2) (91) Finance costs related to borrowings and long-term payables (100) (112) M&A, business set up and restructuring related costs (10) (7) IPO related costs including incentive costs (18) (10) Implementation costs for IFRS 9 and 17 and Group-wide supervision (1) (4) Other non-operating items (3) (1) Non-market related non-operating items (132) (134) Profit before tax 259 109 Tax on operating profit before tax (97) (89) Tax impact from non-operating items 8 19 Net profit after tax 170 39 Net profit after tax attributable to: Equity Holders of the Company 172 47 Shareholders of the Company 165 10 Perpetual securities 7 37 Non-controlling interests (2) (8) Net profit after tax 170 39 Adjusted basic earnings per share (US$) (i) 0.13 0.01 Note: (i) The adjusted weighted average number of ordinary shares outstanding for the six months ended 30 June 2026 was 1,277,830,325 (for the same period in 2025: 1,178,205,907). The weighted average number of ordinary shares outstanding for the six months ended 30 June 2025 was adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as at 1 January 2025. Refer to note 4.4 and 24 in the interim condensed consolidated financial statements for further information. Management discussion and analysis 13
Page 15
CSM and profit before tax sensitivities Sensitivities for CSM and profit before tax to changes in equity prices, interest rates and foreign exchange rates are shown below. The interest rate sensitivities apply a 50 basis point movement in current bond yields and the corresponding movement on discount rates applied to the calculation of liabilities. Further details are included in note 26 to the interim condensed consolidated financial statements. CSM sensitivities As at As at US$ millions 30 June 2026 31 December 2025 Effect of equity price changes 10 per cent increase in equity prices 169 137 10 per cent decrease in equity prices (173) (136) Effect of interest rate changes 50 basis points increase in interest rates 62 64 50 basis points decrease in interest rates (64) (69) Effect of foreign exchange rate changes 5 per cent strengthening of original currency United States dollar — — Hong Kong dollar 36 37 Thai Baht 82 78 Japanese Yen 78 78 5 per cent strengthening of US dollar United States dollar — — Hong Kong dollar (30) (31) Thai Baht (82) (78) Japanese Yen (78) (78) Profit before tax sensitivities Six months ended Year ended US$ millions 30 June 2026 31 December 2025 Effect of equity price changes 10 per cent increase in equity prices 110 124 10 per cent decrease in equity prices (111) (125) Effect of interest rate changes 50 basis points increase in interest rates 11 12 50 basis points decrease in interest rates (27) (44) Effect of foreign exchange rate changes 5 per cent strengthening of original currency United States dollar 45 36 Hong Kong dollar (59) (60) Thai Baht 7 (1) Japanese Yen 1 1 5 per cent strengthening of US dollar United States dollar 45 36 Hong Kong dollar 58 61 Thai Baht (7) 1 Japanese Yen (1) (1) Management discussion and analysis 14
Page 16
Value IFRS balance sheet Consolidated statement of financial position As at As at US$ millions 30 June 2026 31 December 2025 Assets Intangible assets 3,039 3,190 Insurance contract assets 738 715 Reinsurance contract assets 2,591 2,722 Financial investments 54,018 52,196 Cash and cash equivalents 1,619 1,487 Other assets 2,445 2,053 Total assets 64,450 62,363 Liabilities Insurance contract liabilities 52,272 49,653 Reinsurance contract liabilities 572 465 Investment contract liabilities 13 17 Derivative financial instruments 522 490 Borrowings 3,049 3,046 Other liabilities 1,735 1,815 Total liabilities 58,163 55,486 Equity Share capital and share premium 9,495 9,477 Other reserves 221 205 Accumulated losses (2,088) (2,254) Accumulated other comprehensive income (1,602) (814) Total equity of the Group attributable to: Shareholders of the Company 6,026 6,614 Perpetual securities 203 203 Non-controlling interests 58 60 Total equity 6,287 6,877 Total liabilities and equity 64,450 62,363 Management discussion and analysis 15
Page 17
Movement in total equity Six months ended US$ millions, unless otherwise stated 30 June 2026 30 June 2025 Opening total equity 6,877 6,814 Net profit after tax 170 39 Other comprehensive income Fair value (losses)/gains on debt securities (1,234) 1,141 Net insurance/reinsurance finance income/(expenses) 621 (973) Cash flow hedges (49) 67 Foreign currency translation adjustments (217) 275 Share of other comprehensive (loss)/income from associates (42) 4 Related income tax 133 (31) Total comprehensive (loss)/income for the period (618) 522 Distribution paid (7) (37) Share-based compensation 34 3 Other movements 1 (1) Closing total equity 6,287 7,301 Total equity of the Group attributable to: Shareholders of the Company 6,026 6,500 Perpetual securities 203 741 Non-controlling interests 58 60 Closing total equity 6,287 7,301 Total equity attributable to shareholders of the Company per share (US$) (i) 4.91 5.52 Note: (i) The number of ordinary shares outstanding as at 30 June 2026 was 1,279,622,076. The adjusted number of ordinary shares outstanding as at 30 June 2025 was 1,178,205,907, which has been adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as of the reporting date. Management discussion and analysis 16
Page 18
Assets Total assets increased by US$ 2,087 million to US$ 64,450 million as at 30 June 2026 from US$62,363 million as at 31 December 2025, mainly driven by an increase in financial investments resulting from business growth. This was partly offset by fair value movements on financial investments and negative foreign exchange movements, mainly from the depreciation of the Japanese Yen and Thai Baht against the US dollar. Liabilities Total liabilities increased to US$ 58,163 million as at 30 June 2026 from US$ 55,486 million as at 31 December 2025, mainly driven by an increase in insurance contract liabilities. Insurance contract liabilities increased to US$ 52,272 million as at 30 June 2026 from US$49,653 million as at 31 December 2025, driven by business growth. The maturity profile of bank and other borrowings of the Group, the currencies in which borrowings are denominated and cash and cash equivalents are held, and the extent to which borrowings are at fixed interest rates are included in notes 20 and 22 to the interim condensed consolidated financial statements. Equity Total equity decreased by US$590 million to US$6,287 million as at 30 June 2026 from US$6,877 million as at 31 December 2025. Total equity includes other comprehensive income or loss, which includes unrealised market movements on debt securities and the net finance income or expenses from insurance contracts and reinsurance contracts held. Fair value losses on debt securities of US$ 1,234 million were partly offset by net finance income from insurance contracts and reinsurance contracts held of US$ 621 million, resulting in a net impact of US$ (613) million. This was mainly driven by the impact of higher interest rates and tightened credit spreads in Thailand. Foreign currency translation losses reflected in other comprehensive income of US$ 217 million were primarily due to the depreciation of the Japanese Yen and Thai Baht against the US dollar in the first half of 2026. Management discussion and analysis 17
Page 19
Investments As at Percentage As at Percentage US$ millions, except for percentages 30 June 2026 of total 31 December 2025 of total Total policyholder and shareholder 50,401 90.7% 49,064 91.4% Total unit-linked contracts 5,161 9.3% 4,589 8.6% Total investments (i) 55,562 100.0% 53,653 100.0% As at Percentage As at Percentage US$ millions, except for percentages 30 June 2026 of total 31 December 2025 of total Participating funds and other participating business with distinct portfolios Government bonds 2,705 5.4% 2,497 5.1% Government agency bonds 560 1.1% 541 1.1% Corporate bonds 11,403 22.6% 8,259 16.8% Structured securities 3,469 6.9% 3,543 7.2% Loans and deposits 17 —% 19 —% Fixed income investments 18,154 36.0% 14,859 30.3% Equity securities 170 0.3% 164 0.3% Interests in investment funds 4,315 8.6% 4,208 8.6% Cash and cash equivalents 211 0.4% 361 0.7% Derivative financial instruments (62) (0.1%) (105) (0.2%) Participating funds and other participating business with distinct portfolios 22,788 45.2% 19,487 39.7% Other policyholder and shareholder Government bonds 14,127 28.0% 15,883 32.4% Government agency bonds 1,367 2.7% 1,448 3.0% Corporate bonds 5,908 11.7% 5,887 12.0% Structured securities 1,492 3.0% 1,724 3.5% Others — —% 19 —% Loans and deposits 923 1.8% 919 1.9% Fixed income investments 23,817 47.3% 25,880 52.7% Equity securities 49 0.1% 106 0.2% Interests in investment funds 2,039 4.0% 1,983 4.0% Investment property 447 0.9% 460 0.9% Cash and cash equivalents 1,408 2.8% 1,126 2.3% Derivative financial instruments (147) (0.3%) 22 —% Other policyholder and shareholder 27,613 54.8% 29,577 60.3% Total policyholder and shareholder 50,401 100.0% 49,064 100.0% Note: (i) Includes financial investments, investment property, cash and cash equivalents and derivative liabilities. Management discussion and analysis 18
Page 20
The discussion of the Group’s investment portfolio composition focuses on policyholder and shareholder investments, excluding unit-linked policies. Total financial investments held in respect of policyholders and shareholders increased to US$ 50,401 million as at 30 June 2026 compared with US$ 49,064 million as at 31 December 2025 . As at 30 June 2026, financial investments representing 45.2 per cent of total policyholder and shareholder investments were held to back participating fund business and other participating business with distinct portfolios, while 54.8 per cent were held in respect of non-participating business and shareholder funds. Participating fund business and other participating business with distinct portfolios are generally measured under the variable fee approach (VFA), under which investment returns are offset by corresponding movements in insurance contract liabilities and therefore do not have a significant impact on the Group’s net investment result. The Group invests predominantly in fixed income investments based on the liability maturity profile and to generate predictable and stable income. As at 30 June 2026, 83.3 per cent of the investment portfolio (excluding unit-linked investments) was composed of fixed income investments, compared with 83.1 per cent as at 31 December 2025 . Total fixed income investments increased to US$41,971 million as at 30 June 2026 from US$40,739 million as at 31 December 2025 , mainly due to business growth, partly offset by fair value movements, and adverse interest rate and foreign exchange movements. Government bonds and government agency bonds amounted to US$18,759 million, representing 44.6 per cent of fixed income investments as at 30 June 2026 , compared with US$ 20,369 million, or 50.0 per cent , of fixed income investments as at 31 December 2025 . The lower proportion in 2026 was partly driven by a shift in the bond mix in FWD Thailand from government bonds to corporate bonds. Corporate bonds and structured securities amounted to US$ 22,272 million, representing 53.1 per cent of fixed income investments as at 30 June 2026, compared with 47.7 per cent as at 31 December 2025. The increase was driven by asset allocation changes in FWD Thailand and FWD Hong Kong & Macau. As at 30 June 2026, 96.7 per cent of the fixed income investment portfolio was rated investment grade. The Group held a small proportion of investments rated below investment grade, primarily comprising corporate bonds and deposits in F WD Hong Kong & Macau, FWD Thailand and FWD Vietnam . Corporate bond ratings are subject to sovereign rating ceilings in their respective jurisdictions, resulting in many corporate bonds in Thailand and Vietnam being assigned ratings below investment grade on an international rating scale. As at 30 June 2026, the Group held US$ 6,573 million in equity securities and interests in investment funds. US$2,088 million of equity securities and interests in investment funds were backing non-participating business and shareholder funds, representing 7.6 per cent of total other policyholder and shareholder investments, of which, 3.6 per cent comprised debt funds and money market funds. For derivative financial instruments used for hedging purposes, please refer to note 17 to the interim condensed consolidated financial statements. Management discussion and analysis 19
Page 21
Comprehensive tangible equity As at As at US$ millions, unless otherwise stated 30 June 2026 31 December 2025 Total equity of the Group attributable to shareholders of the Company 6,026 6,614 Contractual service margin (net of reinsurance, tax and non-controlling interests) 5,836 5,293 Comprehensive equity 11,862 11,907 Less: Intangible assets (net of non-controlling interests) (3,037) (3,190) Comprehensive tangible equity (CTE) 8,825 8,717 CTE per share (US$) 6.90 6.83 CTE as at 30 June 2026 was US$8,825 million, which increased by US$ 108 million from US$8,717 million as at 31 December 2025 , primarily driven by positive organic contribution from new business and positive operating variances. This increase was partially offset by negative economic variances from higher interest rates and narrowing credit spreads, together with unfavourable foreign exchange moveme nts. Excluding the impact from economic variances and foreign exchange, CTE grew 11 per cent from 31 December 2025. Management discussion and analysis 20
Page 22
Group embedded value Six months ended 30 June US$ millions, unless otherwise stated 2026 2025 Opening Group EV 6,850 5,569 Expected return on EV 318 294 VNB 602 506 Operating variances and assumption changes 47 37 Total EV operating profit 968 837 Economic variances and assumption changes (297) 15 Other non-operating variances (156) (150) Total EV profit 515 701 Corporate centre expenses (68) (69) Financing (107) (148) Foreign exchange movements (241) 327 Closing Group EV 6,949 6,380 EV operating profit per share (US$) (i) 0.76 0.71 EV per share (US$) (ii) 5.43 5.42 Notes: (i) The adjusted weighted average number of ordinary shares outstanding for the six months ended 30 June 2026 was 1,277,830,325 (for the same period in 2025: 1,178,205,907). The weighted average number of ordinary shares outstanding for the six months ended 30 June 2025 was adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as at 1 January 2025. Refer to note 4.4 and 24 in the interim condensed consolidated financial statements for further information. (ii) The number of ordinary shares outstanding as at 30 June 2026 was 1,279,622,076. The adjusted number of ordinary shares outstanding as at 30 June 2025 was 1,178,205,907, which has been adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as of the reporting date. Group EV as at 30 June 2026 was US$6,949 million, which increased by US$99 million from 31 December 2025. EV operating profit in the first half of 2026 was US$968 million and increased by 15 per cent compared with the same period in 2025 , primarily from strong new business growth and improvement in operating variances and assumption changes in the first half of 2026 . Operating leverage improved in the first half of 2026 , with expense underrun of US$39 million compared with US$16 million in the same period in 2025. Economic variances and assumption changes were US$ (297) million in the first half of 2026 , primarily from an increase in interest rates and lower than expected long-term investment returns in private equities impacting economic variances. Other non-operating variances include M&A, business set up and restructuring related costs, IPO related costs including incentive costs, implementation costs for IFRS 9 and 17 and Group-wide supervision, one-off adjustments such as the impact of payments related to distribution agreements, and methodology and regulatory changes on EV. For the first half of 2026, other non-operating variances also included a negative impact of US$151 million from ESR implementation. Financing costs declined 28 per cent to US$107 million in the first half of 2026 compared with the same period in 2025, reflecting deleveraging and refinancing efforts in reducing leverage ratio. Unfavourable foreign exchange movements were primarily driven by the depreciation of both the Japanese Yen and Thai Baht against the US dollar in the first half of 2026. Management discussion and analysis 21
Page 23
Group embedded value and value of new business sensitivities Sensitivities for Group EV and VNB to changes in equity prices, interest rates and foreign exchange rates are shown below. The sensitivity tests on interest rates have been applied to the net investment returns (and corresponding adjustments to the market value of assets for debt securities and derivatives, statutory reserving bases, bonus/dividend scales for participating business, crediting rates for universal life business, unit fund growth rates for unit linked business) and risk discount rates. The direction of interest rate sensitivities varies across markets. Refer to the section headed “Supplementary embedded value information” for more details. Group EV sensitivities As at As at US$ millions 30 June 2026 31 December 2025 Effect of equity price changes 10 per cent increase in equity prices 218 203 10 per cent decrease in equity prices (222) (203) Effect of interest rate changes 50 basis points increase in interest rates (130) (98) 50 basis points decrease in interest rates 118 93 Effect of presentation currency changes 5 per cent appreciation of presentation currency (299) (324) 5 per cent depreciation of presentation currency 298 324 VNB sensitivities Six months ended 30 June US$ millions 2026 2025 Effect of interest rate changes 50 basis points increase in interest rates 40 23 50 basis points decrease in interest rates (45) (26) Effect of presentation currency changes 5 per cent appreciation of presentation currency (14) (13) 5 per cent depreciation of presentation currency 14 13 Management discussion and analysis 22
Page 24
Risk & Capital Free surplus Six months ended 30 June US$ millions, unless otherwise stated 2026 2025 Opening free surplus 1,369 668 Underlying free surplus generation (UFSG) 352 428 Opening adjustment 29 102 Underlying free surplus generation before opening adjustment 323 326 Free surplus used to fund new business 29 (11) Net underlying free surplus generation (Net UFSG) 381 417 Net underlying free surplus generation before opening adjustment 352 315 Investment return variances and other items (629) 586 Corporate centre expenses (73) (69) Financing and finance costs (107) (148) Closing free surplus 942 1,454 Net UFSG per share (US$) (i) 0.30 0.35 Note: (i) The adjusted weighted average number of ordinary shares outstanding for the six months ended 30 June 2026 was 1,277,830,325 (for the same period in 2025: 1,178,205,907). The weighted average number of ordinary shares outstanding for the six months ended 30 June 2025 was adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as at 1 January 2025. Refer to note 4.4 and 24 in the interim condensed consolidated financial statements for further information. The total free surplus decreased by US$ 427 million in the first half of 2026 (from US$ 1,369 million as at 31 December 2025 to US$ 942 million as at 30 June 2026 ), primarily driven by economic variances arising from higher interest rates and lower than expected long-term investment returns in private equities and unfavourable foreign exchange variance. Net UFSG in the first half of 2026 was US$381 million and decreased by 11 per cent from the same period in 2025 resulting from a negative impact of ESR implementation of US$74 million in 2026. Net UFSG before opening adjustment in the first half of 2026 delivered double-digit organic growth from the same period in 2025. Group LCSM solvency position Under the IA’s GWS framework, the Group capital requirements are determined in accordance with the Insurance (Group Capital) Rules, where the Group solvency is measured based on the LCSM. Group LCSM free surplus (PCR basis) is the difference between group available capital and group prescribed capital requirement, and Group LCSM cover ratio (PCR basis) is the ratio of group available capital to Group Prescribed Capital Requirement (GPCR). Group LCSM Tier 1 cover ratio (MCR basis) is the ratio of Group Tier 1 available capital to Group Minimum Capital Requirement (GMCR). The Group calculates these amounts as the sum of the available capital and the sum of the minimum and prescribed capital requirements, as applicable, of each entity within the Group as determined in accordance with local regulatory requirements, subject to any capital variation the IA considers necessary. The Group LCSM cover ratio (PCR basis) decreased to 203 per cent as at 30 June 2026 from 265 per cent as at 31 December 2025, with 55 percentage point drop driven by the implementation of ESR in Japan. The remaining drop of 7 percentage points was driven by the interest rate increase in Thailand and unfavourable foreign exchange movements from depreciation of the Japanese Yen and Thai Baht against the US dollar , partially offset by reinsurance transactions. The Group LCSM Tier 1 cover ratio (MCR basis) decreased to 316 per cent as at 30 June 2026 from 338 per cent at 31 December 2025 with similar drivers, except that the impact of ESR implementation in Japan is slightly favourable. Management discussion and analysis 23
Page 25
As at As at US$ millions, except for percentages 30 June 2026 31 December 2025 Group available capital 8,458 7,766 of which Tier 1 capital 6,072 5,398 Group minimum capital requirement (GMCR) 1,919 1,597 Group prescribed capital requirement (GPCR) 4,156 2,933 Group LCSM free surplus (PCR basis) 4,301 4,833 Group LCSM Tier 1 cover ratio (MCR basis) (i) 316% 338% Group LCSM cover ratio (PCR basis) (ii) 203% 265% Notes: (i) Also defined as the “Tier 1 group capital coverage ratio”. (ii) Also defined as the “eligible group capital resources coverage ratio”. Group LCSM cover ratio (PCR basis) sensitivities Group LCSM cover ratio (PCR basis) sensitivities, arising from changes in the central assumptions from equity prices, interest rates and foreign exchange rates and applied consistently with those in EV, are shown below. The interest rate sensitivities apply a 50 basis point movement in current bond yields and the corresponding movement on discount rates applied to the calculation of liabilities. The amount of eligible debt capital is unchanged in the sensitivity calculations. The Group solvency’s sensitivities to interest rate movements and foreign exchange rate changes reduced as at 30 June 2026 compared with 31 December 2025, primarily due to higher interest rates in Thailand and the implementation of ESR in Japan. As at As at 30 June 2026 31 December 2025 Central value 203% 265% Effect of equity price changes 10 per cent increase in equity prices 1 pps 1 pps 10 per cent decrease in equity prices (1) pps (2) pps Effect of interest rate changes 50 basis points increase in interest rates (0) pps (14) pps 50 basis points decrease in interest rates 3 pps 3 pps Effect of foreign exchange rate changes 5 per cent appreciation in presentation currency (1) pps (3) pps 5 per cent depreciation in presentation currency 1 pps 4 pps Local solvency requirements The Group’s operating subsidiaries are subject to solvency and capital regulations of, and the supervision of insurance regulators in the jurisdictions in which they operate and are incorporated and/or domiciled. As at 30 June 2026, all operating subsidiaries were in compliance with the relevant solvency and capital requirements prescribed under applicable insurance laws. The key developments in local solvency requirements are summarised as follows: Japan In October 2024, the JFSA announced proposed amendments to laws and regulations in relation to ESR and the use of internal models. On 23 July 2025, the JFSA announced the final ESR and the date of implementation from the fiscal year ended 31 March 2026. Management discussion and analysis 24
Page 26
Following the implementation of ESR in Japan, the FWD Life Japan solvency ratio reduced from 1,622 per cent under SMR basis as at 31 December 2025 to 197 per cent under ESR basis as at 30 June 2026 1. Group LCSM cover ratio (PCR basis) also dropped by 55 percentage points while Group LCSM Tier 1 cover ratio (MCR basis) improved slightly. Consequently, Group EV and the corresponding free surplus decreased by US $151 million and US$74 million, respectively. However, this change does not alter the underlying economics of the business and the Group does not anticipate any additional constraints on its financial flexibility or any material changes to holding company financial resources as a result of the change. Regulatory and international developments Insurance capital standard (ICS) The ICS, which applies to IAIGs, was adopted by the IAIS at its annual general meeting in December 2024. In January 2023, the IA identified the Group as an IAIG. The ICS has been developed as a consolidated group-wide capital standard for IAIGs. It consists of three components: valuation, qualifying capital resources, and a standard method for the ICS capital requirement. The ICS implementation timeline recognises that it may take some time for jurisdictions to finalise any necessary regulatory and supervisory changes to align with the ICS, taking into account jurisdictional circumstances. In 2026, the IAIS has stated it will coordinate a baseline self-assessment by IAIS members of their progress in implementing the ICS, which will serve as a baseline for further implementation progress monitoring. The IAIS will then aim to start in-depth targeted jurisdictional assessments in 2027. The Group has been engaging with the IA on the implementation of the ICS and continuously monitors the progress of such implementation and its potential impact on the Group. Global minimum tax The Group has been subject to GMT since 1 January 2025, following the enactment of the relevant legislation in Hong Kong SAR. Under GMT, a top-up tax liability generally arises when the Group’s GMT effective tax rate in a jurisdiction falls below 15 per cent, unless an exemption applies. If the jurisdiction where the top-up tax arises has enacted domestic GMT legislation, the liability will be payable locally. Otherwise, in FWD’s case, the top-up tax will be payable in Hong Kong SAR. Holding company financial resources The Group maintains and manages sufficient holding company financial resources including its committed contingent liquidity facilities. Net remittances from operating subsi diaries and an associate2 of US$512 million in the first half of 2026 were lower compared with US$541 million in the first half of 2025, primarily due to a one-off repatriation of excess capital from FWD Life (Hong Kong) in 2025. The Company’s liquidity resources as at 30 June 2026 were US$1,913 million, which included committed revolving facilities, which was higher than the US$1,652 million as at 31 December 2025 mainly due to seasonality of capital remittances to the Company occurring in the first half of the year. The Company’s next loan maturity is in 2028 and next bond maturity in 2030 as further disclosed in note 22 in the interim condensed consolidated financial statements. Global medium-term note and securities As at 30 June 2026, the aggregate carrying amount of the debt issued to the market under the programme was US$2,055 million, which was unchanged from 31 December 2025. The Group has further advanced the simplification of its capital structure by redeeming its US$200 million perpetual capital securities on 14 August 2026. This was funded by the issuance of Singapore $270 million 5.75- year subordinated dated capital securities in July 2026 providing the Group with approximately US$6.7 million3 savings on annual debt-servicing cost in addition to diversifying the Group’s investor base through access to Singapore dollar investors. Combined with the deleveraging and refinancing undertaken after our initial public offering on 7 July 2025, this has reduced the Group’s annual debt-servicing cost by approximately US$78 million. Management discussion and analysis 25 1 The solvency ratio of FWD Life Japan as at 30 June 2026 has been estimated based on the prevailing economic conditions, or the most recently available economic environment where current data is not readily available. 2 Net remittances completed in first half of the financial year. Refers to Note 4.1 of interim condensed c onsolidated financial statements and excludes other adjustments. 3 Estimated annual savings of approximately US$6.7 million from refinancing US$200 million perpetual securities at 6.675% with SG$270 million subordinated dated capital securities at 3.18%, utilising a USD/SGD exchange rate of 1.29.
Page 27
Leverage ratio The Group’s leverage ratio, which is calculated as total borrowings divided by the sum of total borrowings, total equity of the Group attributable to shareholders of the Company and non-controlling interests, and contractual service margin (net of reinsurance, tax and non-controlling interests), was 21.4 per cent as at 30 June 2026 , largely unchanged from 21.3 per cent as at 31 December 2025. The leverage ratio remained stable as the decrease in the total equity of the Group attributable to shareholders of the Company was offset by an increase in the CSM balance, while debt remained stable over the period. Credit ratings As at 30 June 2026, FWD Life (Bermuda) and FWD Reinsurance had unchanged notional insurance financial strength rating of “A2” with a stable outlook from Moody’s; and FWD Life (Bermuda) and FWD Life Japan had unchanged insurer financial strength rating of “A (Strong)” with a positive outlook from Fitch. As at 30 June 2026, the Company had unchanged issuer default ratings of “Baa1” with a stable outlook from Moody’s; and “BBB+” with a positive outlook from Fitch. Significant investment, major acquisitions and disposal of subsidiaries, associates and joint ventures Save as disclosed in this announcement, during the six months ended 30 June 2026, the Group did not make any material acquisitions or disposals of subsidiaries, associates or joint ventures by the Group. As at 30 June 2026, the Group did not hold any significant investments. Future plans for material investments or capital assets Save as disclosed in this announcement, as at 30 June 2026, the Group did not have any specific future plans for material investments or capital assets. Charge on assets As at 30 June 2026, no assets of the Group were pledged to secure banking facilities for the Group. Commitments and contingent liabilities Details of commitments and contingent liabilities for the Group as at 30 June 2026 are set out in note 29 to the interim condensed consolidated financial statements. Issue of equity securities or sale of treasury shares and use of proceeds During the first half of 2026, a total of 3,616,799 Shares were allotted and issued to the Trustee for the satisfaction of the vesting of certain of the Pre-IPO Awards granted to the grantees before the Listing by way of allotment of new Shares pursuant to the Share Option and RSU Plan and the Pre-IPO Awards Shares Issuance disclosed in the Prospectus. For further details, please refer to the section headed “Appendix V — Statutory and General Information — D. Equity Incentive Plans” in the Prospectus. Save as disclosed above, the Company had not issued any equity securities (including securities convertible into equity securities) or sold any treasury shares for cash for the Reporting Period. The net proceeds from the IPO of the Company since listing have been fully utilised in 2025. For details, please refer to the sections on “Use of proceeds” in the Company’s 2025 Annual Report. Events after the reporting period Details of significant events occurring after 30 June 2026 are set out in note 30 to the interim condensed consolidated financial statements. Save as disclosed above, there are no other significant events that may affect the Group after 30 June 2026 and up to the date of this announcement. Management discussion and analysis 26
Page 28
Operational highlights – geographical markets Hong Kong & Macau As at As at YOY YOY US$ millions, unless otherwise stated 30 June 2026 30 June 2025 CER AER New business sales (APE) 679 640 6% 6% NB CSM 502 400 25% 25% NB CSM margin 74.8% 63.2% 11.6 pps 11.6 pps VNB 332 267 25% 25% New business margin 48.9% 41.7% 7.2 pps 7.2 pps Business and financial highlights New business sales in the Hong Kong & Macau segment increased by 6 per cent in the first half of 2026, despite a high base of comparison where sales grew by 103 per cent in the first half of 2025 compared with the same period in 2024. This growth was supported by sustained customer demand and a continued focus on enhancing profitability through lower endowment sales. Growth in the first half of 2026 was primarily driven by stronger onshore demand, reflecting the stability and resilience of the domestic customer base . More than half of FWD Hong Kong & Macau’s VNB was generated domestically, demonstrating sustained local demand . Customer diversification remained broad-based, with approximately 24 per cen t of VNB contributed by Chinese mainland visitors and a further 18 per cent by other offshore customers. New business sales momentum strengthened into the second quarter, supported by Hong Kong SAR’s position as a leading global wealth hub. Moreover, NB CSM and VNB achieved double-digit growth, driven by margin expansion from a more favourable product mix. FWD Hong Kong & Macau’s multi-channel distribution model continues to demonstrate the benefits of diversification. Both bancassurance and agency channels achieved double-digit growth in new business sales, reflecting the s trength of its 14 non-exclusive bancassurance partnerships and continued progress in building a high quality agency force. Bancassurance remained a core pillar of FWD Hong Kong & Macau’s distribution strategy, serving as a key driver of scale and recurring business flows for the segment . The agency channel r e m a i n s a k e y g r o w t h e n g i n e w i t h a n i n c r e a s i n g a g e n c y f o r c e a n d a n 1 8 p e r c e n t y e a r - o n - y e a r i m p r o v e m e n t i n agency productivity. Focused investments in quality recruitment, together with the ongoing rollout of digitally enabled sales and servicing tools, continued to strengthen FWD Hong Kong’s agency channel. This is reflected in consistent recognition of its agency force, with FWD ra nking as one of t he top five insurers in Hong Kong SAR for MDRT membership for seven consecutive years1. The brokerage/IFA channel delivered strong double-digit VNB growth, leveraging an extensive network of over 290 partners. Growth was supported by deeper engagement with key wealth management partner s and targeted client strategies for ultra HNW and HNW customers, leveraging FWD Private, FWD's dedicated HNW offering, alongside continued enhancements to FWD Hong Kong & Macau's product offerings. Digital transformation remains a key strategic priority. FWD MAX, FWD Hong Kong & Macau’s award winning lifestyle engagement platform, has reached over 466,000 members as at 30 June 2026. Its integration into the broader digital ecosystem has further strengthened FWD’s positioning as a customer-centric insurer. In addition, FWD Hong Kong ranked amongst the top five direct insurers by new business sales 2, supported by continued investment in digital platforms and targeted marketing initiatives to enhance brand visibility. FWD Hong Kong & Macau’s performance in the first half of 2026 reflects the successful execution of its strategic priorities and has positioned the business for continued growth . The focus remains on scaling the HNW proposition, enhancing digital capabilities, and deepening multi-channel distribution reach to capture emerging opportunities across both onshore and offshore segments. Operational highlights 27 1 Based on statistics published by MDRT as of July 2026. 2 According to the IA, for the first quarter of 2026, in terms of new business sales, with HSBC and Hang Seng Insurance combined as one insurer.
Page 29
Japan US$ millions, unless otherwise stated 30 June 2026 30 June 2025 CER AER New business sales (APE) 76 63 29% 21% NB CSM 121 106 22% 14% NB CSM margin 158.2% 167.1% (9.0) pps (8.9) pps VNB 59 44 43% 34% New business margin 77.3% 69.7% 7.7 pps 7.6 pps As at As at YOY YOY Business and financial highlights FWD Japan has established a competitive and sustainable franchise focused on individual protection. The segment delivered strong new business growth in the first half of 2026, with new business sales increasing by 29 p e r c e n t y e a r - o n - y e a r , d u e t o c o n t i n u e d d e m a n d f o r t h e J S P A p r o d u c t . J S P A w a s i n t r o d u c e d i n J u l y 2 0 2 5 t o complement the segment’s established individual protection franchise. The product has gained strong customer traction, supported by demand for savings and retirement solutions in a higher interest rate environment and the structural tailwind from Japan’s ageing population. Growth in the segment’s APE drove a 43 per cent increase in VNB to US$59 million, and a 22 per cent increase in NB CSM to US$ 121 million in the first half of 2026 compared with the same period in 2025. Technology transformation is a core enabler of FWD Japan’s business exe cution. The segment has advanced its generative AI strategy by identifying use cases across all functional areas. A generative AI-powered chatbot for advisors was upgraded to improve sales efficiency and reduce manual touchpoints, leading to a 15 per cent increase in call centre productivity. Continued investment in tailored training and AI-enabled tool s, including FWD Cube, is enhancing sales productivity1, whilst also contributing to improved operational efficiencies across customer servicing operations. FWD Japan delivered a strong performance in the first half of 2026, combining robust new business growth with significant value creation. The segment continues to generate some of the highest new business margins in the Group and is an important contributor to overall profitability, reflecting the strength of its product mix and disciplined execution. The business is benefiting from favourable structural trends in the retirement savings market. The current higher interest rate environment further enhances the attractiveness of these products for customers, creating additional opportunities for sustainable growth. Combined with its established protection franchise, growing contribution from JSPA and continued focus on distribution productivity, FWD Japan is well positioned to maintain sales momentum while delivering attractive margins, growing earnings and strong cash generation over the long term. Operational highlights 28 1 AI assistant is also supporting IFA partners with AI-enabled training and sales support tools, with users achieving more than two times higher new policy growth.
Page 30
Thailand & Cambodia As at As at YOY YOY US$ millions, unless otherwise stated 30 June 2026 30 June 2025 CER AER New business sales (APE) 311 311 (5%) —% NB CSM 241 199 15% 21% NB CSM margin 77.6% 64.7% 12.9 pps 12.9 pps VNB 139 137 (3%) 2% New business margin 44.8% 44.1% 0.8 pps 0.7 pps Business and financial highlights The Thailand and Cambodia segment remains the Group’s second-largest market in terms of new business sales in the first half of 2026. Despite a 5 per cent decline in APE in the first half of 2026 compared with the same period in 2025 , the segment’s NB CSM increased by 15 per cent to US$ 241 million. This reflects the segment’s continued focus on writing high quality new business and maintaining a favourable product mix, which drove an improvement in NB CSM margin. VNB declined 3 per cent to US$139 million in the first half of 2026 , compared with the same period in 2025 . While favourable product mix contributed to new business margin improvement, this was more than offset by the low interest rate environment. FWD Thailand is the number one bancassurer in the market through its partnership with SCB1. It continues to deepen this partnership with SCB, supported by FWD Omne being integrated as the default insurance platform within SCB Easy, the bank’s mobile application serving over 18 million customers, where customer adoption has continued to gain momentum. The bancassurance channel also provides a strong platform to engage HNW customers and deliver tailored financial legacy planning solutions. The exclusive bancassurance partnership with SCB remains a key pillar of the distribution strategy. In the agency channel, FWD Thailand & Cambodia continues to focus on building a high-quality, digitally enabled agency force. The FutureMe programme helps support agency recruitment, resulting in improved productivity and higher average policy size. FWD has maintained the number two ranking in MDRT in Thailand2, showcasing a quality agency force. FWD’s established digital tools, including FWD Cube, Agent AI Assistant, and eRecruitment continue to support agents through real-time performance insights and personalised sales recommendations. Technology also played a pivotal role in boosting productivity and enhancing customer experience in FWD Thailand & Cambodia. To further enhance engagement efficiency, FWD has deployed generative AI voicebots in Thailand and these AI assistants now handle 66% of customer calls, resolving about two-thirds of these without human intervention3. FWD remains confident in the medium and long- term growth potential of the Thailand and Cambodia markets. With its multi-channel distribution network, comprehensive product suite, and robust digital and technology capabilities, the segment is well-positioned to grow with the markets and meet the insurance needs of the customers. Operational highlights 29 1 According to Thai Life Assurance Association (TLAA), for the first half of 2026. 2 Based on statistics published by MDRT as of July 2026. 3 Calculated as total calls resolved by the voicebot divided by total calls routed to the voicebot in June 2026.
Page 31
Expansion Markets As at As at YOY YOY US$ millions, unless otherwise stated 30 June 2026 30 June 2025 CER AER New business sales (APE) 282 232 23% 22% NB CSM 133 89 52% 50% NB CSM margin 48.8% 39.8% 9.3 pps 9.0 pps VNB 78 58 36% 35% New business margin 27.8% 25.1% 2.7 pps 2.8 pps Overview The Expansion Markets segment spans five diverse and high-growth potential countries: Indonesia, Malaysia, the Philippines, Singapore, and Vietnam. Most of these markets share common characteristics such as rising middle class populations, lower but growing insurance penetration 1, increasing awareness of health and protection needs, and growing investment in digital and AI. Despite economic headwinds and regulatory shifts, the region continues to offer long-term growth opportunities driven by demographic tailwinds, financial inclusion efforts, and evolving customer expectations. Overall new business sales in the Expansion Markets segment increased by 23 per cent in the first half of 2026, compared with the same period in 2025. Growth in this segment was driven by strong sales of investment-linked products in the brokerage/IFA channel in Singapo re, increase in sales to affluent customers in the Philippines and a growing digital commerce channel in Malaysia. This was partially offset by continued industry headwinds in Vietnam. The Philippines FWD Philippines was ranked as the number one life insurer in the Philippines by new business sales in the first half of 20262, supported by an increase in sales to affluent customers, including the launch of FastLane, a legacy planning product. FWD Philippines exclusive partnership with Security Bank achieved strong double-digit year- on-year new business sales growt h during the first half of 2026. FWD Philippines also achieved the number one position in the Philippines MDRT rankings3. Indonesia Since FWD Indonesia was established in 2015, it has consistently focused on executing its bancassurance strategy, having partnered with seven banks as at 30 June 2026 . Bancassurance new business sales grew by mid-teens in the first half of 2026 . FWD Indonesia is also focused on building a quality agency force, prioritising high productivity, and sustainable and profitable business growth. The BRI Life Indonesia joint venture, in which FWD holds approximately 44 per cent as at 30 June 202 6, remained as the number one bancassurer in the market4. Singapore FWD Singapore deliv ered strong new business sales growth through its multi-channel distribution network. In the first half of 2026, the brokerage/IFA channel delivered exceptional growth, with new business sales more than doubling compared with the same period in 2025. The channel has also continued to expand and now includes over 6,000 advisors from 43 partners. FWD Sin gapore was one of the market leader s in open architecture financial advisor sales in the first half of 2026. New business growth was driven by strong sales of investment-linked products in the brokerage/IFA channel , as well as increase d sales of legacy planning and wealth protection solutions. Operational highlights 30 1 According to Swiss Re Sigma report (2025) and data sourced from Oxford Economics. 2 According to Insurance Commission, in terms of new business annual premium equivalent – singleton basis, for the first half of 2026. 3 Based on statistics published by MDRT as of July 2026. 4 According to Indonesian Life Insurance Association (Asosiasi Asuransi Jiwa Indonesia), measured in new business sales, for the first half of 2026.
Page 32
Vietnam FWD Vietnam operates a multi-channel distribution business. In partnership with Vietcombank (VCB), FWD Vietnam offers investment and insurance solutions that cater to diverse client needs. FWD Vietnam’s agency force delivered double-digit new business sales growth in the first half of 2026 despite market challenges, through improvement in both activity and productivity from higher frontline engagement and continued emphasis on sales discipline. Malaysia FWD Takaful in Malaysia achieved strong growth in the digital commerce channel through the online self-service platform i-Lindung which was the primary driver of growth in non-participating products during the first half of 2026. The bancassurance channel also saw double-digit growth in new business sales primarily driven by the contribution of new bank partners Alliance Bank and MBSB Bank Berhad. FWD Life Malaysia continued to build momentum in the first half of 2026, with both its agency channel and exclusive bancassurance partnership with Bank Simpanan Nasional (BSN) delivering double-digit growth in new business sales. Operational highlights 31
Page 33
Operational highlights – distribution APE VNB US$ millions, except for percentages Six months ended 30 June CER Six months ended 30 June CER 2026 2025 YoY 2026 2025 YoY Bancassurance 521 480 7% 249 215 13% Brokerage/IFA 500 466 8% 248 191 31% Agency 239 209 14% 73 71 2% Others 87 92 (7)% 39 29 35% Less: Global minimum tax provision n/a n/a n/a (6) n/a n/a Total 1,348 1,246 7% 602 506 20% Bancassurance channel Bancassurance remains the cornerstone of FWD Group’s distribution strategy, supported by a broad network of banking partners, including seven exclusive long-term partnersh ips and 34 b ancassurance relationships as at 30 June 2026. FWD’s strategy for the bancassurance channel has been to partner exclusively and non-exclusively with local champion banks in each of FWD’s markets, and to use digital tools to enhance the bank partners’ customer experience and productivity. During the first half of 2026, APE in the bancassurance channel increased by 7 per cent year-on-year to US$ 521 million, and VNB grew by 13 per cent to US$ 249 million. P erformance was underpinned by favourable product mix that supports higher margins, despite varying market conditions across geographies. The Group is one of the leading bancassurers in Southeast As ia1 with 10 new partnerships established since 2024 across Hong Kong SAR and Macau SAR, Indonesia, Malaysia and Singapore, and the Group continues to execute its strategy of partnering with national champion banks across the region. These partnerships deepen customer engagement, broaden access to underserved segments and strengthen the group’s positions in key markets. FWD was the number one bancassurer in Thailand and Indonesia (through FWD’s joint venture, BRI Life) 2, providing access to large and growing customer bases that support sustainable long-term new business growth. The Group continues to enhance its bancassurance capabilities through digital enablement, including the integration of customer platforms into partner bank ecosystems. This includes embedding FWD’s customer- facing application, FWD Omne, within SCB Easy, the banking app used by over 18 million SCB customers, which enables instant access to policy linking, servicing and claims within a single, seamless experience, eliminating the need to switch applications. Brokerage/IFA channel The Group’s brokerage/IFA channel forms an integral part of its multi-channel distribution strategy, enabling access to customers through advisory partners and complementing its agency and bancassurance channels to support a balanced and diversified distribution platform across its markets. The brokerage/IFA channel continued to deliver solid growth in the first half of 2026, with APE growing by 8 per cent year-on-year to US$ 500 million and VNB growing at 31 per cent year-on-year to US$ 248 million, reflecting sustained momentum following strong growth of 51 per cent in APE and 38 per cent in VNB in 2025. FWD Private remains a key pillar of the Group’s strategy in this channel, supporting growth in the HNW segment. With established hubs in Hong Kong SAR, Singapore and Bermuda, the platform continues to strengthen engagement with top advisory partners and address customers’ global wealth and legacy planning needs. FWD Private continued to deliver strong sales momentum in the first half of 2026, supported by deeper partner penetration with new business sales generated through international brokers more than doubling compared with the same period in 2025. Enhanced product propositions and expanding customer servicing capabilities also have helped to position the Group to capture further opportunities in the growing HNW segment. Operational highlights 32 1 Based on New Business Sales data as at 31 December 2025. 2 According to Thai Life Assurance Association (TLAA), for the first half of 2026, and according to Indonesian Life Insurance Association (Asosiasi Asuransi Jiwa Indonesia), BRI Life ranked as number one bancassurance insurer by APE, for the first half of 2026.
Page 34
FWD Japan distributes its products exclusively through IFAs. Growth here was supported by FWD Japan's expansion into the savings and retirement space, particularly through increasing sales of its JSPA product . FWD Singapore was one of the market leaders in open architecture financial advisory sales in the first half of 2026. Agency channel The agency channel remains a core pillar of the Group’s distribution strategy, providing direct access to customers through a network of over 40,000 agents as at 30 June 2026. New business sales in the agency channel grew by 14 per cent to US$239 million and VNB increased by 2 per cent to US$73 million in the first half of 2026 compared with the same period in 2025. The Group continues to focus on improving agent quality, professionalism and activity engagement, with sustained improvements in productivity and strong MDRT rankings across key markets, where the Group continued to rank in the top ten of multinational companies globally1. FWD also ranked number one in the Philippines, number two in Thailand, and number five in Hong Kong SAR in the MDRT global rankings1. This stability of the agency channel’s new business performance in the first half of 2026 reflects the continued focus on quality growth and disciplined execution. The Group continues to invest in programmes to support organic growth and capability development, including initiatives such as FutureMe, which focuses on building a full-time professional agency force to provide need-based advisory to customers and improve quality, productivity and sustainable growth in the agency channel over time. Digital enablement remains a key focus in the agency channel, with FWD Cube supporting agents’ development and training. With the support of AI assistant tools, these platforms support lead generation, improve efficiency and enhance customer engagement, reinforcing the Group’s “high-touch, high-tech” agency model. As a result of these collective investments and focused execution, FWD’s agency channel continues to improve in quality, providing consistent and stable growth and an increasingly material contribution to FWD Group’s multi-channel distribution platform. Other channels Other channels include the digital commerce channel, and other direct to consumer channels. In the first half of 2026, “other channels” achieved 35 per cent VNB growth year-on-year. The digital commerce channel offers simple and typically smaller-ticket solutions such as life, health and accident insurance through eCommerce initiatives. It provides a fast and seamless 24/7 access through both desktop and mobile devices for customers who prefer self-service. Beyond being an important distribution channel, it also drives referrals and O2O lead generation to boost sales across the other channels. The Group acquires digital commerce customers by leveraging the eCommerce platform in the following three key areas: (1) digital D2C, (2) digital platforms of partner banks and ecosystem partnerships, and (3) O2O referrals from other channels. The Group’s ecosystem partnerships form a key piece of its digital commerce c hannel. By partnering with businesses across the eCommerce, telecommunications, retail and fintech industries across its markets, FWD Group is able to further penetrate various customer demographics and offer them seamless, integrated and customised insurance via the partner’s platform. As at 30 June 2026, FWD had over 35 ecosystem partners, including HKT in Hong Kong SAR, KTU in Malaysia and Traveloka in Indonesia. Operational highlights 33 1 Based on statistics published by MDRT as of July 2026.
Page 35
Compliance with Corporate Governance Code Throughout the six months ended 30 June 2026, except for Code Provision C.6.3, the Company complied with all applicable code provisions in the Corporate Governance Code set out in Appendix C1 to the Listing Rules. Code Provision C.6.3 provides that the company secretary should report to the chairman of the board and/or the chief executive. The Company operates under a variant of this model whereby the Company Secretary reports to the Group General Counsel, who is ultimately accountable for the company secretarial function of the Company and who reports to the Group Chief Financial Officer, who in turn reports directly to the Group Chief Executive Officer. Compliance with Model Code The Company has adopted its own FWD Group Directors/Chief Executives Dealing and Disclosure Policy on terms no less exacting than those set out in the Model Code. All of the Directors (including the Group Chief Executive Officer) have confirmed, following specific enquiry by the Company, that they have complied with the required standards set out in the FWD Group Directors/Chief Executives Dealing and Disclosure Policy throughout the six months ended 30 June 2026. Changes in Directors’ information As announced on 29 May 2026, Mr. Martin ZINGG has been elected as a Non-executive Director with effect from the conclusion of the AGM held on 29 May 2026. Following the election of Mr. Martin ZINGG as a Director, he has also been appointed as a member of both the Audit Committee and Risk Committee of the Company, with effect from the conclusion of the AGM. The biographies of the Directors are available on the Company’s website at www.fwd.com. Save as disclosed above, there is no other information that is required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules. Directors’ and the chief executive’s interests and short positions in shares, underlying shares and debentures of the Company and its associated corporations As at 30 June 2026, the interests and short positions of the Directors and the chief executive of the Company in the shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which are required: (i) to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they are taken or deemed to have under such provisions of the SFO); or (ii) pursuant to section 352 of the SFO, to be entered in the register maintained by the Company; or (iii) to be notified to the Company and the Stock Exchange pursuant to the Model Code are as follows: Corporate governance 34
Page 36
Long positions in the Shares or underlying Shares of the Company Name of Director or chief executive Number of Shares Long Position (L) Approximate percentage of the total number of Shares in issue* Capacity/Nature of interest MA Si Hang, Frederick 348,589 (L) 0.03% Beneficial owner LI Tzar Kai, Richard(1) 846,207,054 (L) 66.13% Interest in controlled corporation HUYNH Thanh Phong(2) 2,991,078 (L) 0.23% Beneficial owner Walter KIELHOLZ 205,052 (L) 0.02% Beneficial owner John DACEY 102,526 (L) 0.01% Beneficial owner CHUNG Kit Hung, Martina 307,578 (L) 0.02% Beneficial owner John BAIRD 246,063 (L) 0.02% Beneficial owner Dirk SLUIMERS 102,526 (L) 0.01% Beneficial owner Kyoko HATTORI 102,526 (L) 0.01% Beneficial owner Yijia TIONG 20,505 (L) 0.00% Beneficial owner Notes: (1) These Shares were held by Spring Achiever (Hong Kong) Limited (in respect of 314,146,078 Shares), Spring Achiever Limited (in respect of 113,930,773 Shares), PCGI Holdings Limited (in respect of 416,631,903 Shares) and Hertford Ventures Limited (in respect of 1,498,300 Shares), respectively. Spring Achiever (Hong Kong) Limited is directly wholly-owned by Spring Achiever Limited, which in turn is directly wholly-owned by Creative Knight Limited. Creative Knight Limited is directly wholly-owned by Mr. LI Tzar Kai, Richard. PCGI Holdings Limited is also wholly-owned by Mr. LI Tzar Kai, Richard. Hertford Ventures Limited is directly wholly-owned by Ace Holdings Management Limited, which in turn is directly wholly-owned by Mr. LI Tzar Kai, Richard. Accordingly, Mr. LI Tzar Kai, Richard was deemed to be interested in these Shares pursuant to the SFO. (2) Of the 2,991,078 Shares, 2,984,118 Shares are share awards granted to Mr. HUYNH Thanh Phong (but not yet vested) pursuant to the Share Award Plan. Upon vesting of these share awards, Shares may be issued by the Company to satisfy the share awards. The remaining 6,960 Shares represent Mr. HUYNH’s contractual interest arising from his enrolment in the Employee Share Purchase Plan for the plan year from July 2026 to June 2027. The number of Shares has been calculated on the basis that (i) Mr. HUYNH elected to acquire Shares of HK$12,000 per month during the aforesaid plan year, (ii) one RSU will be granted for every two Shares acquired under the Employee Share Purchase Plan, and (iii) the closing price of the Shares was HK$31.00 on 18 June 2026, being the last business day of the enrolment period for the aforesaid plan year. * Based on 1,279,622,076 Shares in issue as at 30 June 2026. Save as disclosed above, as at 30 June 2026, neither the Directors nor the chief executive of the Company have any interest or short position in the shares, underlying shares or debentures of the Company or its associated corporations (within the meaning of Part XV of the SFO), which are required: (i) to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they are taken or deemed to have under such provisions of the SFO); or (ii) pursuant to section 352 of the SFO, to be entered in the register maintained by the Company; or (iii) to be notified to the Company and the Stock Exchange pursuant to the Model Code. Interests and short positions in Shares and underlying Shares of persons other than the Directors or the chief executive As at 30 June 2026, so far as the Directors are aware, the following persons (other than the Directors or the chief executive of the Company) have interests and short positions in the Shares and underlying Shares of the Company as recorded in the register required to be kept by the Company pursuant to section 336 of the SFO: Corporate governance 35
Page 37
Long positions in the Shares Name of Shareholder Number of Shares Long Position (L) Approximate percentage of the total number of Shares in issue* Capacity/Nature of interest PCGI Holdings Limited(1) 416,631,903 (L) 32.56% Beneficial owner Creative Knight Limited(2) 428,076,851 (L) 33.45% Interest in controlled corporation Spring Achiever Limited(2) 113,930,773 (L) 314,146,078 (L) 8.90% 24.55% Beneficial owner Interest in controlled corporation 428,076,851 (L) 33.45% Spring Achiever (Hong Kong) Limited(2) 314,146,078 (L) 24.55% Beneficial owner Swiss Re Ltd(3) 72,017,205 (L) 5.63% Interest in controlled corporation Swiss Reinsurance Company Ltd(3) 72,017,205 (L) 5.63% Interest in controlled corporation Swiss Re Asia Holding Pte. Ltd. (3) 72,017,205 (L) 5.63% Interest in controlled corporation Swiss Re Principal Investments Company Asia Pte. Ltd.(3) 72,017,205 (L) 5.63% Beneficial owner HOPU USD Master Fund III, L.P.(4) 87,671,470 (L) 6.85% Interest in controlled corporation HOPU Investments Co. III Ltd.(4) 87,671,470 (L) 6.85% Interest in controlled corporation HOPU USD Master Fund III Management Holding Co., Ltd.(4) 87,671,470 (L) 6.85% Interest in controlled corporation Hercules Investment Group Limited(4) 87,671,470 (L) 6.85% Interest in controlled corporation Kovan Investments Limited(4) 87,671,470 (L) 6.85% Interest in controlled corporation HOPU Holding Limited(4) 87,671,470 (L) 6.85% Interest in controlled corporation Vertile Limited(4) 87,671,470 (L) 6.85% Interest in controlled corporation FANG Fenglei(4) 87,671,470 (L) 6.85% Interest in controlled corporation Notes: (1) PCGI Holdings Limited is wholly-owned by Mr. LI Tzar Kai, Richard. (2) Spring Achiever (Hong Kong) Limited is directly wholly-owned by Spring Achiever Limited, which in turn is directly wholly-owned by Creative Knight Limited. Creative Knight Limited is directly wholly-owned by Mr. LI Tzar Kai, Richard. (3) Swiss Re Principal Investments Company Asia Pte. Ltd. is directly wholly-owned by Swiss Re Asia Holding Pte. Ltd., which is directly wholly-owned by Swiss Reinsurance Company Ltd. Swiss Reinsurance Company Ltd is directly wholly-owned by Swiss Re Ltd. (4) HOPU USD Master Fund III, L.P. holds an aggregate of 87,671,470 Shares through (i) Future Financial Investment Company Ltd and (ii) Fornax Investment Global Company Limited, both of which are direct Shareholders of 40,814,250 Shares and 46,857,220 Shares, respectively. HOPU USD Master Fund III, L.P. is controlled by HOPU Investments Co. III Ltd., which is controlled by HOPU USD Master Fund III Management Holding Co., Ltd., which in turn is indirectly controlled by Mr. FANG Fenglei through Hercules Investment Group Limited, Kovan Investments Limited, HOPU Holding Limited and Vertile Limited. Future Financial Investment Company Ltd is controlled by HOPU USD Master Fund III, L.P. through Future Financial International Company Ltd and Future Financial Global Holding Ltd. HOPU USD Master Fund III, L.P. is a Cayman Islands limited partnership acting through its general partner, HOPU Investments Co. III Ltd., which is part of and managed by HOPU Investments (an independent third party), an Asian alternative asset manager. Fornax Investment Global Company Limited is controlled by Falcon 2019 Co-Invest A, L.P., which is a Cayman Islands limited partnership acting through its general partner, Falcon 2019 Co-invest GP, which is in turn controlled by HOPU Investments Co. III Ltd., which is part of and managed by HOPU Investments (an independent third party), an Asian alternative asset manager. * Based on 1,279,622,076 Shares in issue as at 30 June 2026. Corporate governance 36
Page 38
Save as disclosed above and to the best knowledge of the Directors of the Company, as at 30 June 2026, no person, other than the Directors or the chief executive of the Company whose interests are set out in the section entitled “Directors’ and the chief executive’s interests and short positions in shares, underlying shares and debentures of the Company and its associated corporations”, had any interest or short position in the Shares or underlying Shares of the Company as recorded in the register required to be kept by the Company pursuant to section 336 of the SFO. Purchase, sale or redemption of the listed securities of the Company During the six months ended 30 June 2026, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the listed securities (including treasury Shares, if any) of the Company. As at the date of this announcement, the Company does not hold any treasury Shares. Share-based compensation Equity Incentive Plans The Group has three Equity Incentive Plans, namely: (a) the FWD Share Option and RSU Plan (the “Share Option and RSU Plan”); (b) the FWD Share Award Plan (the “Share Award Plan”); and (c) the FWD Employee Share Purchase Plan (the “Employee Share Purchase Plan”). Share Option and RSU Plan The Share Option and RSU Plan was jointly adopted by the boards of directors of FL and FGL on 28 November 2017 and was subsequently amended on 5 December 2018 and 30 January 2022. The terms of the Share Option and RSU Plan are not subject to the provisions of Chapter 17 of the Listing Rules as the Group does not intend to make any further grants of awards under the Share Option and RSU Plan after Listing. The Board approved the assumption of the outstanding awards by the Company on 16 August 2021 and 23 June 2022. During the six months ended 30 June 2026, 1,742,241 RSUs and 1,867,745 PSUs that were granted before Listing vested under the Share Option and RSU Plan, all of which were satisfied by new Shares issued pursuant to the Pre-IPO Awards Shares Issuance disclosed in the Prospectus. As at 30 June 2026, the total number of Shares that may be issued upon vesting of all outstanding awards granted under the Share Option and RSU Plan was 15,999,353 Shares, which is approximately 1.25 per cent of the Shares in issue (excluding treasury shares) as at 30 June 2026. No further awards will be granted under the Share Option and RSU Plan after Listing and accordingly other than as disclosed above, no further Shares will be issued pursuant to the Share Option and RSU Plan. The table below further summarises the movements, during the six months ended 30 June 2026, of the Pre-IPO Awards granted prior to Listing pursuant to the Share Option and RSU Plan. Corporate governance 37
Page 39
Date of grant (day/month/ year) Date of vesting (day/ month/year) Number of Shares underlying outstanding awards as at 1 January 2026 (Note 1) Awards granted during the six months ended 30 June 2026 (Note 2) Awards vested during the six months ended 30 June 2026 Awards lapsed during the six months ended 30 June 2026 (Note 3) Number of Shares underlying outstanding awards as at 30 June 2026 (Note 1) Weighted average closing price of Shares immediately before the dates on which awards were vested (HK$) (Note 4) Eligible employees and participants (including former employees and participants) in aggregate Awards in the form of RSUs 3/4/2023 1/4/2026 1,338,759 - (1,226,181) (112,578) - 30.38 3/4/2023 1/4/2027 1,334,009 - - (112,237) 1,221,772 N/A 1/4/2024 1/4/2026 517,240 - (516,060) (1,180) - 30.38 1/4/2024 1/4/2027 104,198 - - (1,181) 103,017 N/A 13/8/2024 1/4/2027 2,025,344 - - (140,213) 1,885,131 N/A 13/8/2024 1/4/2028 1,612,428 - - (152,049) 1,460,379 N/A 28/10/2024 1/4/2027 6,170 - - - 6,170 N/A 28/10/2024 1/4/2028 6,173 - - - 6,173 N/A 12/5/2025 1/4/2028 3,023,026 - - (245,378) 2,777,648 N/A 12/5/2025 1/4/2029 1,641,781 - - (112,955) 1,528,826 N/A Awards in the form of PSUs 3/4/2023 1/4/2026 1,519,776 - (734,605) (785,171) - 30.38 1/4/2024 1/4/2026 2,098,410 - (1,133,140) (965,270) - 30.38 13/8/2024 1/4/2027 3,488,174 - - (181,214) 3,306,960 N/A 28/10/2024 1/4/2027 10,360 - - - 10,360 N/A 12/5/2025 1/4/2028 4,112,413 - - (419,496) 3,692,917 N/A Grand Total Awards in the form of RSUs 11,609,128 - (1,742,241) (877,771) 8,989,116 Awards in the form of PSUs 11,229,133 - (1,867,745) (2,351,151) 7,010,237 Total 22,838,261 - (3,609,986) (3,228,922) 15,999,353 Notes: (1) The number of Shares underlying outstanding awards granted under the Share Option and RSU Plan prior to Listing was determined according to the stated fixed monetary value of these awards at grant and the share price of HK$38 (i.e. the offer price per Share under the Listing). The awards are accounted for in accordance with IFRS 2 share-based payment. (2) No consideration shall be payable by the participant on acceptance of any RSUs or PSUs granted. (3) No awards have been cancelled during the six months ended 30 June 2026. (4) The relevant weighted average closing price of the Shares immediately before the dates on which the awards were vested has been specified. For awards that have not yet vested, the Company has stated "N/A" in the table above. (5) The vesting of these RSUs is subject to service requirements. The vesting of these PSUs is subject to service requirements as well as the level of achievement of performance targets (based on both financial and non-financial measures) with different weighting attached during the relevant performance period as stated in the grant letters, as further described in the Company’s 2025 Annual Report. The number of Shares underlying PSUs has been stated based on the maximum vesting level that an eligible participant may achieve pursuant to the terms of the awards granted. Rule 17.07(1)(c)(iv) of the Listing Rules, insofar as the closing price of the Shares is concerned, is not applicable as the grant of the awards preceded the Listing Date. Please refer to footnote (1) above for the fair value of the RSUs and PSUs at the date of grant and the accounting standard and policy adopted. Corporate governance 38
Page 40
Share Award Plan The Share Award Plan was approved and adopted by the Board on 30 January 2022 and amended by the Board on 27 February 2023 with further minor amendments made on 8 August 2024 and 16 May 2025, in each case to incorporate the requirements set out in the revised Chapter 17 of the Listing Rules which took effect from 1 January 2023. The Share Award Plan operates both before and after Listing. The terms of the Share Award Plan rules that are expressed to apply prior to Listing are not subject to the provisions of Chapter 17 of the Listing Rules. During the six months ended 30 June 2026, 6,088,294 RSUs and 7,974,702 PSUs were granted under the Share Award Plan. During the same period, no RSUs and PSUs were vested and no new Shares were issued in respect of the outstanding awards granted under the Share Award Plan. Accordingly, as at 30 June 2026, the total number of Shares that may be issued upon vesting of all outstanding awards granted under the Share Award Plan was 24,682,566 Shares, which is approximately 1.93 per cent of the Shares in issue (excluding treasury shares) as at 30 June 2026. The table below further summarises the movements in RSUs and PSUs granted pursuant to the Share Award Plan during the six months ended 30 June 2026. Corporate governance 39
Page 41
Date of grant (day/month/ year) Date of vesting (day/ month/year) Number of Shares underlying outstanding awards as at 1 January 2026 (Note 1) Awards granted during the six months ended 30 June 2026 (Note 2) Awards vested during the six months ended 30 June 2026 Awards lapsed during the six months ended 30 June 2026 (Note 3) Number of Shares underlying outstanding awards as at 30 June 2026 (Note 1) Weighted average closing price of Shares immediately before the dates on which awards were vested (HK$) (Note 4) Group Chief Executive Officer & Executive Director Awards in the form of RSUs HUYNH Thanh Phong 16/6/2025 1/4/2028 486,999 - - - 486,999 N/A 30/12/2025 31/12/2026 1,100 - - - 1,100 N/A 4/5/2026 1/4/2029 - 365,292 - - 365,292 N/A Awards in the form of PSUs 16/6/2025 1/4/2028 1,217,497 - - - 1,217,497 N/A 4/5/2026 1/4/2029 - 913,230 - - 913,230 N/A Other eligible employees and participants (including former employees and participants) in aggregate Awards in the form of RSUs 30/12/2025 31/12/2026 6,154,916 - - (208,850) 5,946,066 N/A 30/12/2025 31/12/2027 1,335,524 - - - 1,335,524 N/A 30/12/2025 1/4/2028 231,354 - - - 231,354 N/A 30/12/2025 1/4/2029 180,141 - - - 180,141 N/A 4/5/2026 1/4/2029 - 3,549,661 - (100,867) 3,448,794 N/A 4/5/2026 4/1/2030 - 2,173,341 - (16,899) 2,156,442 N/A Awards in the form of PSUs 30/12/2025 1/4/2028 319,125 - - - 319,125 N/A 4/5/2026 1/4/2029 - 7,061,472 - (209,925) 6,851,547 N/A Service providers in aggregate Awards in the form of RSUs 30/12/2025 31/12/2026 614,724 - - - 614,724 N/A 30/12/2025 31/12/2027 614,731 - - - 614,731 N/A Grand Total Awards in the form of RSUs 9,619,489 6,088,294 - (326,616) 15,381,167 Awards in the form of PSUs 1,536,622 7,974,702 - (209,925) 9,301,399 Total 11,156,111 14,062,996 - (536,541) 24,682,566 Notes: (1) The number of Shares underlying outstanding awards granted under the Share Award Plan prior to Listing was determined according to the stated fixed monetary value of the award at grant and the share price of HK$38 (i.e. the offer price per Share under the Listing). (2) No consideration shall be payable by the participant on acceptance of any RSUs or PSUs granted. (3) No awards have been cancelled during the six months ended 30 June 2026. (4) Rule 17.07(1)(d) of the Listing Rules, insofar as the weighted average closing price of the Shares is concerned, is not applicable as no awards have vested during the six months ended 30 June 2026. (5) The vesting of these RSUs is subject to service requirements. The vesting of these PSUs is subject to service requirements as well as the level of achievement of performance targets (based on both financial and non-financial measures) with different weighting attached during the relevant performance period as stated in the grant letters. For awards granted on 16 June 2025 and 30 December 2025 , the performance factors are described in the Company’s 2025 Annual Report. For awards granted on 4 May 2026, the performance factors is based on net profit after tax and total shareholder return (absolute and relative). The number of Shares underlying PSUs has been stated based on the maximum vesting level that an eligible participant may achieve pursuant to the terms of the awards granted. Corporate governance 40
Page 42
(6) Rule 17.07(1)(c)(iv) of the Listing Rules, insofar as the closing price of the Shares is concerned, is not applicable for awards granted on 16 June 2025 as the grants preceded the Listing Date. Please refer to footnote (1) above for the fair value of the RSUs and PSUs at the date of grant. For the awards granted on 30 December 2025, the closing price of the Shares immediately before the date on which RSUs and PSUs were granted was HK$38.06 and the fair value of the RSUs and PSUs at the date of grant was determined to be HK$40.9 (in respect of grants for which the measurement date was determined to be on 30 December 2025) and HK$38.1 (in respect of grants for which the measurement date was determined to be on 15 December 2025) . For the awards granted on 4 May 2026, the closing price of the Shares immediately before the date on which RSUs and PSUs were granted was HK$30.28 and the fair value of the RSUs and PSUs at the date of grant was determined to be HK$30.50 and HK$24.61, respectively. The measurement date (i.e. the date used to determine the value of the grants for accounting purposes) for each grant is generally the same as the respective date of grant, except that for the awards granted on 30 December 2025, the measurement date for 4,820,500 Shares was determined to be on 15 December 2025. These measurement dates and fair value of awards at the date of grant were determined in accordance with IFRS 2 share-based payment. Employee Share Purchase Plan The Employee Share Purchase Plan was approved and adopted by the Board on 30 January 2022 and took effect on the Listing Date (i.e. 7 July 2025) (the “ESPP Adoption Date”) upon satisfaction of all relevant conditions. The terms of the Employee Share Purchase Plan have been amended by the Board on 27 February 2023 with further minor amendments made on 8 August 2024 and 16 May 2025, in each case to incorporate the requirements set out in the revised Chapter 17 of the Listing Rules which took effect from 1 January 2023. The plan was subsequently further amended on 29 May 2026, with such amendments approved by the shareholders at the AGM. Under the Employee Share Purchase Plan, eligible employees may elect to purchase Shares and, through the grant of matching RSUs, employees who are still in employment with the Group at the time of vesting will receive one matching Share for every two Shares purchased that are held until the vesting of the matching RSUs, which generally takes place three years from the first day of the plan year. Each eligible employee’s participation level is capped at the lower of eight per cent of the monthly base salary or HK$12,000 (or local currency equivalent) per calendar month. The matching Shares for the 2026 plan year (which commenced on 1 July 2026 until 30 June 2027) will be awarded through the purchases of existing Shares on market by the plan trustee. For the 2026 plan year, the monthly Share purchases and the grant of matching RSUs are scheduled to take place on the 15th of each month (or, if such day is not a business day, the next succeeding business day), or on such other date as may be determined by the Company in accordance with the terms of the plan. These purchases and grants are scheduled to commence from August 2026 to July 2027, with a vesting date of 30 June 2029. Accordingly, since the ESPP Adoption Date (including for the period of six months ended 30 June 2026), no matching RSUs were granted or vested, and no new Shares were issued under the Employee Share Purchase Plan. Consequently, there are no other applicable disclosure under Rule 17.07 of the Listing Rules in respect of the Employee Share Purchase Plan for the six months ended 30 June 2026. As at 30 June 2026 and for the avoidance of doubt, Shares that will be issued on or after Listing in order to satisfy Pre-IPO Awards made under the Share Option and RSU Plan or the Share Award Plan will not be counted towards the Plan Mandate Limit when calculating the maximum aggregate number of new Shares in respect of which awards may be granted pursuant to the Share Award Plan and the Employee Share Purchase Plan after Listing. Accordingly and based on the disclosures above in relation to the Share Award Plan and the Employee Share Purchase Plan: (a) the number of Shares available for issue pursuant to the Share Award Plan and the Employee Share Purchase Plan in aggregate (i) as at 1 January 2026 and (ii) as at 30 June 2026 (excluding options or awards lapsed in accordance with the terms of the relevant scheme), was 117,648,772 (representing 9.22 per cent of the Shares in issue (excluding treasury shares) as at 1 January 2026) and 104,122,317 (representing 8.14 per cent of the Shares in issue (excluding treasury shares) as at 30 June 2026), respectively; and (b) the number of Shares available for issue pursuant to the Share Award Plan to a Service Provider (as defined in the Share Award Plan) (i) as at 1 January 2026 and (ii) as at 30 June 2026 (excluding options or awards lapsed in accordance with the terms of the relevant scheme), was 36,900,661 (representing 2.89 per cent of the Shares in issue (excluding treasury shares) as at 1 January 2026) and 36,900,661 (representing 2.88 per cent of the Shares in issue (excluding treasury shares) as at 30 June 2026), respectively. Corporate governance 41
Page 43
The total number of Shares that may be issued upon vesting of all outstanding awards granted during the six months ended 30 June 2026 under the Equity Incentive Plans was 14,062,996 Shares, which is approximately 1.10 per cent when divided by the weighted average number of the Shares in issue (excluding treasury shares) for the six months ended 30 June 2026. Details regarding the fair value measurement of the awards granted under the share plans of the Company during the six months ended 30 June 2026 and the accounting standard and policy adopted are set out in note 2 to the interim condensed consolidated financial statements. For further information regarding the above share plans of the Company, please refer to the Remuneration Report in the Company’s 2025 Annual Report and the Company’s circular dated 16 April 2026. Employees As at 30 June 2026, the Group had 7,491 employees, compared to 6,931 employees as at 31 December 2025. This included the transfer of around 600 staff in January 2026 as a result of the acquisition of a telemarketing channel serving the mass market customer base of SCB, FWD’s exclusive bancassurance partner in Thailand. Details of employee remuneration are set out in note 7 to the interim condensed consolidated financial statements. Save as disclosed above and in the section headed “Corporate governance — Share-based compensation” in this announcement, there have been no material changes to the information disclosed in the Company’s 2025 Annual Report relating to the remuneration policies, share schemes, and people strategy and programmes of the Group. Corporate governance 42
Page 44
Independent review report 44 Interim consolidated income statement 45 Interim consolidated statement of comprehensive income 46 Interim consolidated statement of financial position 47 Interim consolidated statement of changes in equity 49 Interim consolidated statement of cash flows 51 Notes to interim condensed consolidated financial statements 52 1 Corporate information 52 17 Derivative financial instruments 96 2 Basis of preparation 52 18 Fair value measurement 98 3 Exchange rates 54 19 Other assets 106 4 Segment information 55 20 Cash and cash equivalents 106 5 Insurance revenue 65 21 Investment contract liabilities 106 6 Net investment result 66 22 Borrowings 107 7 Expenses 68 23 Other liabilities 108 8 Borrowings and other finance costs 68 24 Share capital, share premium and reserves 109 9 Income tax 69 25 Group capital structure 114 10 Earnings per share 70 26 Risk management 116 11 Dividends 71 27 Share-based compensation 130 12 Intangible assets 72 28 Related party transactions 131 13 Investments in associates 73 29 Commitments and contingencies 133 14 Investment property 73 30 Events after reporting period 133 15 Insurance and reinsurance contract balances 74 31 Interim statement of financial position of the Company 134 16 Financial investments 91 32 Interim statement of changes in equity of the Company 135 Interim condensed consolidated financial statements 43
Page 45
INDEPENDENT REVIEW REPORT T o t h e s h a r e h o l d e r s o f F W D G r o u p H o l d i n g s L i m i t e d 富 衛 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) Introduction We have reviewed the interim financial information set out on pages 45 to 135, which comprises the condensed c o n s o l i d a t e d s t a t e m e n t o f f i n a n c i a l p o s i t i o n o f F W D G r o u p H o l d i n g s L i m i t e d 富 衛 集 團 有 限 公 司 ( t h e “ C o m p a n y ” ) and its subsidiaries (the “Group”) as at 30 June 2026 and the related condensed consolidated statements of income, comprehensive income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”). The directors of the Company are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34. Our responsibility is to express a conclusion on this interim financial information based on our review. Our report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Scope of Review We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with IAS 34. Ernst & Young Certified Public Accountants Hong Kong 25 August 2026 Interim condensed consolidated financial statements 44
Page 46
INTERIM CONSOLIDATED INCOME STATEMENT Six months ended 30 June US$m Notes 2026 2025 (Unaudited) (Unaudited) Insurance revenue 5,15 1,576 1,482 Insurance service expenses 7,15 (1,081) (1,097) Net expenses from reinsurance contracts held 15 (19) (27) Insurance service result 476 358 Interest revenue on Financial assets not measured at fair value through profit or loss 761 609 Financial assets measured at fair value through profit or loss 24 50 Other investment gains/(losses) 496 (84) Net impairment loss on financial assets (8) (2) Investment return 6 1,273 573 Net finance expenses from insurance contracts (1,212) (564) Net finance income from reinsurance contracts held 26 32 Movement in investment contract liabilities — (2) Net investment result 6 87 39 Net insurance and investment result 563 397 Other revenue 7 26 General and other expenses 7 (213) (205) Borrowings and other finance costs 8 (116) (124) Profit before share of profit from associates 241 94 Share of profit from associates 13 18 15 Profit before tax 259 109 Tax expense 9 (89) (70) Net profit 170 39 Net profit attributable to: Equity Holders of the Company 4 172 47 Shareholders of the Company 165 10 Perpetual securities 7 37 Non-controlling interests (2) (8) 170 39 Earnings per share (US$): Basic 10 0.13 0.02 Diluted 10 0.13 0.02 Interim condensed consolidated financial statements 45
Page 47
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Net profit 170 39 OTHER COMPREHENSIVE INCOME Items that may be reclassified subsequently to profit or loss Fair value (losses)/gains on debt securities at fair value through other comprehensive income (1,245) 853 Fair value losses on debt securities at fair value through other comprehensive income transferred to income on disposal and impairment 11 288 Net finance income/(expenses) from insurance contracts 810 (702) Net finance expenses from reinsurance contracts held (189) (271) Cash flow hedges (49) 67 Foreign currency translation adjustments (217) 275 Share of other comprehensive (loss)/income from associates (42) 4 Related income tax 133 (31) Total other comprehensive (loss)/income (788) 483 Total comprehensive (loss)/income (618) 522 Total comprehensive (loss)/income attributable to: Equity Holders of the Company (615) 523 Shareholders of the Company (622) 486 Perpetual securities 7 37 Non-controlling interests (3) (1) (618) 522 Interim condensed consolidated financial statements 46
Page 48
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at As at US$m Notes 30 June 2026 31 December 2025 (Unaudited) ASSETS Intangible assets 12 3,039 3,190 Investments in associates 13 429 460 Property, plant and equipment 224 152 Investment property 14 447 460 Insurance contract assets 15 738 715 Reinsurance contract assets 15 2,591 2,722 Financial investments 16,18 At fair value through other comprehensive income debt securities 37,781 37,505 At fair value through profit or loss Debt securities 3,357 2,315 Equity securities 219 270 Interests in investment funds 11,408 10,761 Derivative financial instruments 17 313 407 Loans and deposits 940 938 54,018 52,196 Deferred tax assets 587 323 Current tax recoverable 3 3 Other assets 19 755 655 Cash and cash equivalents 20 1,619 1,487 Total assets 64,450 62,363 LIABILITIES Insurance contract liabilities 15 52,272 49,653 Reinsurance contract liabilities 15 572 465 Investment contract liabilities 21 13 17 Borrowings 22 3,049 3,046 Derivative financial instruments 17 522 490 Provisions 36 42 Deferred tax liabilities 175 186 Current tax liabilities 320 305 Other liabilities 23 1,204 1,282 Total liabilities 58,163 55,486 Interim condensed consolidated financial statements 47
Page 49
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) As at As at US$m Notes 30 June 2026 31 December 2025 (Unaudited) EQUITY Share capital and share premium 24 9,495 9,477 Other reserves 24 221 205 Accumulated losses (2,088) (2,254) Accumulated other comprehensive income (1,602) (814) Fair value reserve 24 (2,703) (1,720) Insurance finance reserve 24 1,842 1,349 Cash flow hedge reserve 24 37 76 Defined benefit obligation revaluation reserve 3 3 Foreign currency translation reserve 24 (681) (464) Share of other comprehensive income of associates (100) (58) Total equity of the Group attributable to: Equity Holders of the Company 6,229 6,817 Shareholders of the Company 6,026 6,614 Perpetual securities 24 203 203 Non-controlling interests 58 60 Total equity 6,287 6,877 Total liabilities and equity 64,450 62,363 Approved and authorised for issue by the Board of Directors on 25 August 2026. Ma Si Hang, Frederick Huynh Thanh Phong Director Director Interim condensed consolidated financial statements 48
Page 50
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to shareholders of the Company US$m Notes Share capital and share premium Other reserves Accumulated losses Accumulated other comprehensive income Fair value reserve Insurance finance reserve Cash flow hedge reserve Defined benefit obligation revaluation reserve Foreign currency translation reserve Share of other comprehensive income of associates Perpetual securities Non- controlling interests Total equity Balance as at 1 January 2026 9,477 205 (2,254) (814) (1,720) 1,349 76 3 (464) (58) 203 60 6,877 Net profit — — 165 — — — — — — — 7 (2) 170 Other comprehensive income items that may be reclassified subsequently to profit or loss Fair value losses on debt securities at fair value through other comprehensive income — — — (1,243) (1,243) — — — — — — (2) (1,245) Fair value losses on debt securities at fair value through other comprehensive income transferred to income on disposal and impairment — — — 13 13 — — — — — — (2) 11 Net finance income from insurance contracts — — — 807 — 807 — — — — — 3 810 Net finance expenses from reinsurance contracts held — — — (189) — (189) — — — — — — (189) Cash flow hedges — — — (49) — — (49) — — — — — (49) Foreign currency translation adjustments — — — (217) — — — — (217) — — — (217) Share of other comprehensive loss of associates — — — (42) — — — — — (42) — — (42) Related income tax — — — 133 248 (125) 10 — — — — — 133 Total comprehensive loss for the period — — 165 (787) (982) 493 (39) — (217) (42) 7 (3) (618) Distribution paid 24 — — — — — — — — — — (7) — (7) Share-based compensation 27 — 34 — — — — — — — — — — 34 Vesting of shares under the Group's Equity Incentive Plans 24 18 (18) — — — — — — — — — — — Others — — 1 (1) (1) — — — — — — 1 1 Balance as at 30 June 2026 (Unaudited) 9,495 221 (2,088) (1,602) (2,703) 1,842 37 3 (681) (100) 203 58 6,287 Interim condensed consolidated financial statements 49
Page 51
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued) Attributable to shareholders of the Company US$m Notes Share capital and share premium Other reserves Accumulated losses Accumulated other comprehensive income Fair value reserve Insurance finance reserve Cash flow hedge reserve Defined benefit obligation revaluation reserve Foreign currency translation reserve Share of other comprehensive income of associates Perpetual securities Non- controlling interests Total equity Balance as at 1 January 2025 9,010 190 (2,139) (1,049) (2,584) 2,292 6 3 (714) (52) 741 61 6,814 Net profit — — 10 — — — — — — — 37 (8) 39 Other comprehensive income items that may be reclassified subsequently to profit or loss Fair value gains on debt securities at fair value through other comprehensive income — — — 845 845 — — — — — — 8 853 Fair value losses on debt securities at fair value through other comprehensive income transferred to income on disposal and impairment — — — 288 288 — — — — — — — 288 Net finance expenses from insurance contracts — — — (700) — (700) — — — — — (2) (702) Net finance expenses from reinsurance contracts held — — — (269) — (269) — — — — — (2) (271) Cash flow hedges — — — 67 — — 67 — — — — — 67 Foreign currency translation adjustments — — — 271 — — — — 271 — — 4 275 Share of other comprehensive income of associates — — — 4 — — — — — 4 — — 4 Related income tax — — — (30) (164) 148 (14) — — — — (1) (31) Total comprehensive income for the period — — 10 476 969 (821) 53 — 271 4 37 (1) 522 Distribution paid 24 — — — — — — — — — — (37) — (37) Share-based compensation 27 — 3 — — — — — — — — — — 3 Others — — (1) — — — — — — — — — (1) Balance as at 30 June 2025 (Unaudited) 9,010 193 (2,130) (573) (1,615) 1,471 59 3 (443) (48) 741 60 7,301 Interim condensed consolidated financial statements 50
Page 52
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS Six months ended 30 June US$m Notes 2026 2025 (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax: 259 109 Adjustments for: Financial investments (4,004) (4,881) Insurance and reinsurance contract balances 3,453 3,849 Investment contract liabilities (4) (14) Other non-cash operating items, including the effect of exchange rate changes on certain operating items (82) 347 Operating cash items: Dividend received 156 145 Interest received 747 649 Interest paid (5) (5) Income tax paid, net of tax refund (222) (71) Net cash provided by operating activities 298 128 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of interest in an associate (3) — Dividend and distribution from an associate 13 7 — Payments for intangible assets (13) (53) Payments for investment properties (1) — Payments for property, plant and equipment (11) (4) Net cash used in investing activities (21) (57) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of bank borrowings 22 (100) (1,000) Proceeds from bank borrowings 22 100 1,000 Distributions paid on perpetual securities 24 (7) (37) Principal portion of lease payments (17) (20) Finance costs paid on lease liabilities (4) (3) Interest expenses paid on borrowings (93) (101) Transaction costs paid on borrowings — (17) Payment for listing related expenses — (1) Net cash used in financing activities (121) (179) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 156 (108) Cash and cash equivalents at beginning of the period 1,487 1,687 Effect of exchange rate changes on cash and cash equivalents (24) 45 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 1,619 1,624 Interim condensed consolidated financial statements 51
Page 53
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1 CORPORATE INFORMATION General information F W D G r o u p H o l d i n g s L i m i t e d 富 衛 集 團 有 限 公 司 ( t h e “ C o m p a n y ” ) i s a n e x e m p t e d c o m p a n y w i t h l i m i t e d l i a b i l i t y incorporated under the laws of the Cayman Islands on 18 March 2013. The address of the Company’s registered office is Vistra (Cayman) Limited, P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman Islands. The Company is listed on the main board of The Stock Exchange of Hong Kong Limited under the stock code “1828”. The Company is a holding company. The Company and its subsidiaries (collectively, “FWD Group” or the “Group”) are principally engaged in the provision of products and services focusing on life insurance. The Group also provides general insurance and investment-related products and services. 2 BASIS OF PREPARATION The unaudited interim condensed consolidated financial statements for the six months ended 30 June 2026 have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”). The interim condensed consolidated financial statements have been prepared on a going concern basis. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss. The accounting policies adopted in these interim condensed consolidated financial statements are consistent with those adopted in the consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following new amendments to the standards from 1 January 2026. (a) Mandatory for six months ended 30 June 2026 The following amendments have been adopted by the Group from 1 January 2026 and have no material impact to the Group: • Amendments to IFRS 9 and IFRS 7, Classification and Measurement of Financial Instruments (2026) • Amendments to IFRS 9 and IFRS 7, Contracts Referencing Nature-dependent Electricity (2026) • Annual Improvements to IFRS Accounting Standards - Volume 11, Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 (2026) Interim condensed consolidated financial statements 52
Page 54
2 BASIS OF PREPARATION (continued) (b) Issued but not yet effective and have not been early adopted The following relevant new standards and amendments to standards have been issued but are not yet effective and have not been early adopted for the reporting periods presented: • IFRS 18, Presentation and Disclosure in Financial Statements (2027) The new standard introduces new presentation requirements in the income statement, including mainly the classification of income and expense items by categories, defined subtotals and totals. It also requires the disclosure of management performance measures (“MPMs”) defined by management with a reconciliation between the MPMs and IFRS results. The standard is expected to change the presentation and disclosures of the Group’s consolidated financial statements but is not expected to impact the financial results of the Group. • Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Deferred) The Group is assessing the application of these amendments, and does not expect material impacts to the Group. Certain amounts in the interim condensed consolidated financial statements of the prior period have been reclassified to conform to current period presentation. The preparation of the Group's interim condensed consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and their accompanying disclosures, and the disclosure of contingent liabilities. All estimates are based on management’s knowledge of current facts and circumstances, assumptions based on that knowledge and predictions of future events and actions. Actual results can always differ from those estimates, possibly significantly. Key judgments, estimates and assumptions applied in these interim condensed consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended 31 December 2025. Items included in the interim condensed consolidated financial statements of each of the Group’s entities are measured in the currency of the primary economic environment in which that entity operates (the functional currency). The interim condensed consolidated financial statements are presented in millions of US dollars (US$m) unless otherwise stated, which is the Company’s functional currency, and the presentation currency of the Company and the Group. Interim condensed consolidated financial statements 53
Page 55
3 EXCHANGE RATES The Group’s principal operations during the reporting periods were located within the Asia region. The results and cash flows of these operations have been translated into US dollars at the following average rates: US dollar exchange rate Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Hong Kong 7.81-7.83 7.78-7.80 Japan 156.89-159.39 144.40-152.58 Thailand 31.61-32.58 33.11-33.95 Assets and liabilities have been translated into US dollars at the following period/year end rates: US dollar exchange rate As at As at 30 June 2026 31 December 2025 (Unaudited) Hong Kong 7.84 7.78 Japan 162.26 156.57 Thailand 33.21 31.53 Exchange rates are expressed in units of local currency per US$1. Interim condensed consolidated financial statements 54
Page 56
4 SEGMENT INFORMATION The Group's operating segments, based on the reports received by the Group's Executive Committee, are the geographical markets in which the Group operates. Each of the reportable segments, other than the “Corporate and Others” segment, writes life insurance business, providing life insurance, accident and health insurance and savings plans to customers in its local market, and distributes related investment and other financial service products. The Group also operates a general insurance business in Singapore. The reportable segments are Hong Kong & Macau, Thailand & Cambodia, Japan, Expansion Markets, and Corporate and Others. Expansion Markets include the Group’s insurance operations in Indonesia, Malaysia, the Philippines, Singapore, and Vietnam . The activities of the Corporate and Others segment consist of the Group's corporate functions, shared services and eliminations of intra-group transactions. As each reportable segment, other than the Corporate and Others segment focuses on serving the life insurance needs of its local market, there are limited transactions between reportable segments. The key performance indicators reported in respect of each segment are: • Operating profit after tax attributable to Equity Holders of the Company1 (Note 4.1); • Operating expenses attributable to Equity Holders of the Company (Note 4.1); • Expense ratio, measured as operating expenses attributable to Equity Holders of the Company divided by TWPI (Note 4.1); and • Total weighted premium income attributable to Equity Holders of the Company (“TWPI”) (Note 4.5). The segment information has been prepared by (i) consolidating the carrying amounts of assets, liabilities, equities, income and expenses of the Group and (ii) eliminating the inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group. A reconciliation of operating profit after tax to profit after tax has been included in Note 4.2. In presenting net capital inflows/(outflows) to reportable segments, capital outflows consist of dividends and profit distributions to the Corporate and Others segment and capital inflows consist of capital injections into reportable segments by the Corporate and Others segment. Expansion Markets' capital inflows also include capital allocation for corporate functions. For the Group, net capital inflows reflect the amounts received from shareholders by way of capital contributions. Interim condensed consolidated financial statements 55 1 Equity Holders of the Company represents shareholders of the Company and holders of perpetual securities of the Company.
Page 57
4 SEGMENT INFORMATION (continued) 4.1 Segment results US$m Hong Kong & Macau Thailand & Cambodia Japan Expansion Markets Corporate and Others Total Six months ended 30 June 2026 (Unaudited) Insurance revenue 553 428 344 251 — 1,576 Insurance service expenses (348) (277) (266) (191) — (1,082) Net expenses from reinsurance contracts held (3) (4) (6) (6) — (19) Insurance service result 202 147 72 54 — 475 Investment return 767 265 56 287 (3) 1,372 Net finance income/(expenses) from insurance contracts and reinsurance contracts held and movement of investment contract liabilities (753) (262) 3 (270) — (1,282) Net insurance and investment result 216 150 131 71 (3) 565 Other revenue 3 — — 3 — 6 General and other expenses (24) (24) (21) (35) (76) (180) Other finance costs (6) — (1) (9) — (16) Operating profit/(loss) before share of profit from associates 189 126 109 30 (79) 375 Share of profit from associates — — — 18 — 18 Operating profit/(loss) before tax 189 126 109 48 (79) 393 Tax on operating profit/(loss) before tax (25) (28) (24) (7) (13) (97) Operating profit/(loss) after tax 164 98 85 41 (92) 296 Operating profit/(loss) after tax attributable to: Equity Holders of the Company 164 98 85 43 (92) 298 Non-controlling interests — — — (2) — (2) Key operating ratio Expense ratio (i) 9.1 % 7.6 % 14.5 % 19.3 % — % 12.4 % Operating profit/(loss) before tax includes: Operating expenses (i) (158) (107) (88) (112) (76) (541) Note: (i) Represents the amount attributable to the Equity Holders of the Company. Interim condensed consolidated financial statements 56
Page 58
4 SEGMENT INFORMATION (continued) 4.1 Segment results (continued) Segment information below represents the financial position of the Group: US$m Hong Kong & Macau Thailand & Cambodia Japan Expansion Markets Corporate and Others Total 30 June 2026 (Unaudited) Total assets 30,333 20,141 6,266 7,222 488 64,450 Total liabilities (27,326) (17,463) (5,046) (5,190) (3,138) (58,163) Total equity 3,007 2,678 1,220 2,032 (2,650) 6,287 Net capital inflows/(outflows) (149) (269) (87) 44 461 — Total assets include: Investment in associates 2 — — 424 3 429 Segment information is reconciled to the consolidated income statement, as shown below: US$m Segment information Short-term fluctuations in investment return related to equity securities, interests in investment funds and and investment property and other non-operating investment return Other non- operating items Total Six months ended 30 June 2026 (Unaudited) Insurance service result 475 — 1 476 Insurance service result Investment return 1,372 (99) — 1,273 Investment return Net finance income/ (expenses) from insurance contracts and reinsurance contracts held and movement of investment contract liabilities (1,282) 96 — (1,186) Net finance income/ (expenses) from insurance contracts and reinsurance contracts held and movement of investment contract liabilities Net insurance and investment result 565 (3) 1 563 Net insurance and investment result Other revenue 6 — 1 7 Other revenue General and other expenses (180) — (33) (213) General and other expenses Other finance costs (16) — (100) (116) Borrowings and other finance costs Operating profit/(loss) before share of profit from associates 375 (3) (131) 241 Profit/(loss) before share of profit from associates Share of profit from associates 18 — — 18 Share of profit from associates Operating profit/(loss) before tax 393 (3) (131) 259 Profit/(loss) before tax Interim condensed consolidated financial statements 57
Page 59
4 SEGMENT INFORMATION (continued) 4.1 Segment results (continued) US$m Hong Kong & Macau Thailand & Cambodia Japan Expansion Markets Corporate and Others Total Six months ended 30 June 2025 (Unaudited) Insurance revenue 541 400 322 219 — 1,482 Insurance service expenses (377) (297) (242) (186) — (1,102) Net expenses from reinsurance contracts held (15) (1) (8) (3) — (27) Insurance service result 149 102 72 30 — 353 Investment return 622 226 66 63 (3) 974 Net finance income/(expenses) from insurance contracts and reinsurance contracts held and movement of investment contract liabilities (593) (203) 4 (47) — (839) Net insurance and investment result 178 125 142 46 (3) 488 Other revenue 3 — — 23 — 26 General and other expenses (28) (22) (21) (38) (73) (182) Other finance costs (3) — — (9) — (12) Operating profit/(loss) before share of profit from associates 150 103 121 22 (76) 320 Share of profit from associates — — — 14 — 14 Operating profit/(loss) before tax 150 103 121 36 (76) 334 Tax on operating profit/(loss) before tax (25) (22) (28) (4) (10) (89) Operating profit/(loss) after tax 125 81 93 32 (86) 245 Operating profit/(loss) after tax attributable to: Equity Holders of the Company 125 81 93 38 (86) 251 Non-controlling interests — — — (6) — (6) Key operating ratio Expense ratio (i) 10.4 % 7.9 % 13.4 % 24.6 % — % 13.6 % Operating profit/(loss) before tax includes: Operating expenses (i) (146) (109) (86) (115) (74) (530) Note: (i) Represents the amount attributable to the Equity Holders of the Company. Interim condensed consolidated financial statements 58
Page 60
4 SEGMENT INFORMATION (continued) 4.1 Segment results (continued) Segment information below represents the financial position of the Group: US$m Hong Kong & Macau Thailand & Cambodia Japan Expansion Markets Corporate and Others Total 31 December 2025 Total assets 26,904 21,957 6,651 6,614 237 62,363 Total liabilities (23,873) (18,526) (5,353) (4,579) (3,155) (55,486) Total equity 3,031 3,431 1,298 2,035 (2,918) 6,877 Net capital inflows/(outflows) (251) (245) (95) 78 979 466 Total assets include: Investment in associates 2 — — 458 — 460 Segment information is reconciled to the consolidated income statement, as shown below: US$m Segment information Short-term fluctuations in investment return related to equity securities, interests in investment funds and investment property and other non-operating investment return Other non- operating items Total Six months ended 30 June 2025 (Unaudited) Insurance service result 353 — 5 358 Insurance service result Investment return 974 (401) — 573 Investment return Net finance income/ (expenses) from insurance contracts and reinsurance contracts held and movement of investment contract liabilities (839) 305 — (534) Net finance income/ (expenses) from insurance contracts and reinsurance contracts held and movement of investment contract liabilities Net insurance and investment result 488 (96) 5 397 Net insurance and investment result Other revenue 26 — — 26 Other revenue General and other expenses (182) — (23) (205) General and other expenses Other finance costs (12) — (112) (124) Borrowings and other finance costs Operating profit/(loss) before share of profit from 320 (96) (130) 94 Profit/(loss) before share of profit from associates Share of profit from associates 14 — 1 15 Share of profit from associates Operating profit/(loss) before tax 334 (96) (129) 109 Profit/(loss) before tax Interim condensed consolidated financial statements 59
Page 61
4 SEGMENT INFORMATION (continued) 4.2 Operating profit The long-term nature of the Group's operations means that, for management's decision-making and internal performance management purposes, the Group evaluates its results and its operating segments using a financial performance measure referred to as “operating profit”. Operating profit is provided to assist in the comparison of business trends in different reporting periods on a consistent basis and to enhance overall understanding of financial performance. Operating profit includes, among others, the expected long-term investment returns for investments in equity securities, interests in investment funds and investment property based on the assumptions applied by the Group in the calculations of Embedded Value. The Group defines operating profit as net profit/(loss) of the Group adjusted to exclude the following items: Market related • Short-term fluctuations in investment return related to equity securities, interests in investment funds and investment property; • Loss component on onerous contracts measured under VFA, relating to market movements; and • Any other items which, in management’s view, should be disclosed separately to enable a full understanding of the Group’s financial performance. Non-market related • Finance costs related to borrowings and long-term payables; • M&A, business set up and restructuring related costs; • IPO related costs including incentive costs; • Implementation costs for IFRS 9 and 17 and Group-wide supervision; and • Any other items which, in management’s view, should be disclosed separately to enable a full understanding of the Group’s financial performance. The Group considers that presenting operating profit enhances the comparability of operating results across reporting periods by excluding certain non-operating items, including market-related fluctuations and financing costs arising from acquisition-related debt, which are not reflective of the Group’s underlying operating performance. Interim condensed consolidated financial statements 60
Page 62
4 SEGMENT INFORMATION (continued) 4.2 Operating profit (continued) Operating profit after tax is reconciled to net profit as follows: Six months ended 30 June US$m Note 2026 2025 (Unaudited) (Unaudited) Operating profit after tax 296 245 Tax on operating profit before tax 97 89 Operating profit before tax 4.1 393 334 Non-operating items: Short-term fluctuations in investment return related to equity securities, interests in investment funds and investment property (27) (70) Other non-operating investment return 24 (26) Loss component on onerous contracts 1 5 Market related non-operating items (2) (91) Finance costs related to borrowings and long-term payables (100) (112) M&A, business set up and restructuring related costs (10) (7) IPO related costs including incentive costs (18) (10) Implementation costs for IFRS 9 and 17 and Group-wide supervision (1) (4) Other non-operating items (3) (1) Non-market related non-operating items (132) (134) Profit before tax 259 109 Tax on operating profit before tax (97) (89) Tax impact from non-operating items 8 19 Net profit 170 39 Operating profit after tax attributable to: Equity Holders of the Company 298 251 Shareholders of the Company 291 214 Perpetual securities 7 37 Non-controlling interests (2) (6) 296 245 Interim condensed consolidated financial statements 61
Page 63
4 SEGMENT INFORMATION (continued) 4.3 Comprehensive tangible equity Comprehensive tangible equity is defined as total equity of the Group attributable to shareholders of the Company plus contractual service margin (net of reinsurance, tax and non-controlling interests), minus intangible assets (net of non-controlling interests). US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Total equity of the Group attributable to shareholders of the Company 6,026 6,614 Contractual service margin 5,836 5,293 Comprehensive equity 11,862 11,907 Intangible assets (3,037) (3,190) Comprehensive tangible equity 8,825 8,717 4.4 Adjusted earnings per share The Conversion of Shares completed on 7 July 2025 resulted in a change in the number of outstanding ordinary shares of the Company. For details, please refer to Note 24.1. To provide financial information for management’s decision-making and internal performance management purposes, the earnings per share for the six months ended 30 June 2025 has been adjusted on the basis that the Conversion of Shares was completed as at 1 January 2025 (the “Adjusted EPS”). A. Adjusted basic earnings per share Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Net profit attributable to shareholders of the Company (US$m) D(i) 165 10 Adjusted weighted average number of ordinary shares outstanding D(ii) 1,277,830,325 1,178,205,907 Adjusted basic earnings per share (US$) 0.13 0.01 B. Adjusted diluted earnings per share Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Net profit attributable to the shareholders of the Company (US$m) D(i) 165 10 Adjusted weighted average number of ordinary shares and dilutive potential ordinary shares outstanding D(ii) 1,293,016,703 1,189,772,253 Adjusted diluted earnings per share (US$) 0.13 0.01 Interim condensed consolidated financial statements 62
Page 64
4 SEGMENT INFORMATION (continued) 4.4 Adjusted earnings per share (continued) C. Adjusted basic operating profit after tax per share Adjusted basic operating profit after tax per share is calculated by dividing: • the Operating profit after tax attributable to shareholders of the Company • by the weighted average number of ordinary shares used as the denominator in calculating adjusted basic earnings per share Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Operating profit after tax attributable to shareholders of the Company (US$m) 4.2 291 214 Adjusted weighted average number of ordinary shares outstanding D(ii) 1,277,830,325 1,178,205,907 Adjusted basic operating profit after tax per share (US$) 0.23 0.18 D. Information concerning the calculation of Adjusted EPS (i) Earnings used in calculating Adjusted EPS Prior to the Conversion of Shares on 7 July 2025, profit/(loss) was allocated to Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares on the basis that the outstanding Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares had been converted to ordinary shares on a 1 to 1 basis. Profit/(loss) attributable to Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares are excluded in the earnings/(loss) used in calculating earnings/(loss) per share as disclosed in Note 10. The Adjusted EPS retrospectively adjusted for the impact of Conversion of Shares on the basis that the Conversion of Shares was completed as at 1 January 2025. Profit/(loss) attributable to these converted ordinary shares are included in the earnings/(loss) used in calculating Adjusted EPS. (ii) Adjusted weighted average number of shares used as the denominator Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Issued ordinary shares at 1 January 24 1,276,005,277 939,953,815 Retrospective adjustment for Conversion of Shares 24 — 2,594,663,913 Retrospective adjustment for Share Consolidation 24 — (2,356,411,821) Effect of vesting of shares under the Group's Equity Incentive Plans 24 1,825,048 — Weighted average number of ordinary shares for adjusted basic earnings per share 1,277,830,325 1,178,205,907 Adjustments for calculation of adjusted diluted earnings per share: RSUs and share options granted under the Group's Equity Incentive Plans(i) 10E(ii), 27 15,186,378 11,566,346 Weighted average number of ordinary shares and dilutive potential ordinary shares for adjusted diluted earnings per share 1,293,016,703 1,189,772,253 Note: (i) The weighted average number of dilutive potential ordinary shares used in calculating adjusted diluted earnings per share are consistent with the weighted average number of dilutive potential ordinary shares used in calculating diluted earnings per share as disclosed in Note 10. Interim condensed consolidated financial statements 63
Page 65
4 SEGMENT INFORMATION (continued) 4.5 Total Weighted Premium Income For management decision-making and internal performance management purposes, the Group measures business volumes during the period using a performance measure referred to as TWPI. TWPI consists of 100 per cent of renewal premiums, 100 per cent of first year premiums and 10 per cent of single premiums, before reinsurance ceded. TWPI represents the amount attributable to the Equity Holders of the Company. Management considers that TWPI provides an indicative volume measure of transactions undertaken in the reporting period that have the potential to generate profits for shareholders. The amounts shown are not intended to be indicative of insurance revenue recorded in the interim consolidated income statement. Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) TWPI by geography Hong Kong & Macau 1,747 1,398 Thailand & Cambodia 1,419 1,390 Japan 608 642 Expansion Markets 579 464 Total 4,353 3,894 First year premiums by geography Hong Kong & Macau 338 425 Thailand & Cambodia 298 295 Japan 56 57 Expansion Markets 211 155 Total 903 932 Single premiums by geography Hong Kong & Macau 3,445 2,117 Thailand & Cambodia 52 52 Japan 205 — Expansion Markets 463 474 Total 4,165 2,643 Renewal premiums by geography Hong Kong & Macau 1,064 761 Thailand & Cambodia 1,116 1,090 Japan 531 585 Expansion Markets 322 262 Total 3,033 2,698 Interim condensed consolidated financial statements 64
Page 66
5 INSURANCE REVENUE Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Contracts not measured under the premium allocation approach ("PAA") Amounts relating to changes in liabilities for remaining coverage: CSM recognised for services provided 436 353 Change in risk adjustment for non-financial risk for risk expired 40 39 Expected incurred claims and other insurance service expenses 614 570 Recovery of insurance acquisition cash flows 397 425 1,487 1,387 Contracts measured under the PAA 89 95 Total insurance revenue 1,576 1,482 Represented by: Contracts measured under the modified retrospective approach 38 43 Contracts measured under the fair value approach 369 415 Other contracts 1,169 1,024 1,576 1,482 Interim condensed consolidated financial statements 65
Page 67
6 NET INVESTMENT RESULT Analysis of investment result in profit or loss and other comprehensive income: Six months ended 30 June US$m Notes 2026 2025 (Unaudited) (Unaudited) Investment return: Interest revenue A 785 659 Other investment gains/(losses) B 496 (84) Net impairment loss on financial assets (8) (2) Amounts recognised in other comprehensive income (1,283) 1,208 Total investment return (10) 1,781 Net finance expenses from insurance contracts: Changes in fair value of underlying items of direct participating contracts (779) (749) Interest accreted (200) (217) Effect of changes in interest rates and other financial assumptions 565 (340) Effect of measuring changes in estimates at current rates and adjusting the CSM at rates on initial recognition 16 (1) Net foreign exchange (loss)/gain (4) 41 Total net finance expenses from insurance contracts C (402) (1,266) Net finance expenses from reinsurance contracts held: Interest accreted 19 (2) Effect of changes in interest rates and other financial assumptions (187) (241) Effect of measuring changes in estimates at current rates and adjusting the CSM at the rates on initial recognition — 1 Others 5 3 Total net finance expenses from reinsurance contracts held C (163) (239) Movement in investment contract liabilities — (2) Net investment result (575) 274 Represented by: Amounts recognised in profit or loss 87 39 Amounts recognised in other comprehensive income (662) 235 (575) 274 Interim condensed consolidated financial statements 66
Page 68
6 NET INVESTMENT RESULT (continued) A. Interest revenue Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Interest revenue calculated using the effective interest method Debt securities measured at FVOCI 730 579 Financial investments measured at amortised cost 31 30 761 609 Other interest revenue Financial investments mandatorily measured at FVTPL 23 50 Financial investments designated at FVTPL 1 — 785 659 B. Other investment gains/(losses) Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Financial investments mandatorily measured at FVTPL: Net fair value gains/(losses) on Debt securities 49 9 Equity securities 5 (16) Interests in investment funds 310 174 Derivatives (96) (117) Dividend income 158 145 Net foreign exchange gain/(loss) 55 (62) 481 133 Financial investments designated at FVTPL: Net foreign exchange gain 3 — Net losses on derecognition of debt investments measured at FVOCI (3) (286) Net foreign exchange gain on instruments not measured at FVTPL — 59 Lease income from investment property 10 11 Net fair value movement of investment property 2 2 Other investment gain/(loss) 3 (3) Total 496 (84) C. Insurance finance income and expenses Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Net finance expenses from insurance contracts Recognised in profit or loss (1,212) (564) Recognised in other comprehensive income 810 (702) (402) (1,266) Net finance expenses from reinsurance contracts held Recognised in profit or loss 26 32 Recognised in other comprehensive income (189) (271) (163) (239) Interim condensed consolidated financial statements 67
Page 69
7 EXPENSES Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Claims and benefits 457 476 Loss on onerous insurance contracts 51 28 Commission and other acquisition expenses 1,400 1,121 Employee benefits expenses 326 305 Professional service fees 66 54 Information technology expenses 66 68 Depreciation 23 29 Amortisation 21 23 Marketing and advertising 18 18 Investment management expenses 30 36 Others 66 69 2,524 2,227 Amounts attributed to insurance acquisition cash flows (1,639) (1,363) Amortisation of insurance acquisition cash flows 409 438 Total 1,294 1,302 Represented by: Insurance service expenses 1,081 1,097 General and other expenses 213 205 1,294 1,302 Employee benefits expenses consist of: Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Wages and salaries 257 251 Share-based compensation 32 20 Pension costs 13 14 Other employee benefits expenses 24 20 Total 326 305 8 BORROWINGS AND OTHER FINANCE COSTS Borrowings and other finance costs may be analysed as follows: Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Borrowings 100 111 Lease liabilities 4 3 Others 12 10 Total 116 124 Interim condensed consolidated financial statements 68
Page 70
9 INCOME TAX Taxes on assessable profits have been calculated at the rates of tax prevailing in the countries (or jurisdictions) in which the Group operates. The total tax expense comprises: Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Current income tax (242) (97) Deferred income tax 153 27 Total (89) (70) The Group calculates income tax expense for the six months ended 30 June 2026 and 2025 using the tax rate expected to apply to the full-year profit before tax. The Group’s effective tax rate for the six months ended 30 June 2026 was 34.5 per cent (six months ended 30 June 2025: 63.9 per cent). Japan enacted a corporate income tax rate increase from 28.0 per cent to 28.93 per cent, effective from 1 April 2026. The Group has been subject to Global Minimum Tax (“GMT”) since 1 January 2025, following the enactment of the relevant legislation in Hong Kong SAR. Under the GMT, a top-up tax liability generally arises when the Group’s GMT effective tax rate in a jurisdiction falls below 15 per cent, unless an exemption applies. If the jurisdiction where the top-up tax arises has enacted domestic GMT legislation, the liability will be payable locally. Otherwise, in the Group’s case, the top-up tax will be payable in Hong Kong SAR. The Group recognised US$4m of current tax expense related to GMT top-up tax for the six months ended 30 June 2026 (six months ended 30 June 2025: US$nil). The Group has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to GMT top-up tax. Interim condensed consolidated financial statements 69
Page 71
10 EARNINGS PER SHARE A. Basic earnings per share Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Net profit attributable to ordinary shareholders of the Company (US$m) C 165 7 Weighted average number of ordinary shares outstanding D 1,277,830,325 313,317,936 Basic earnings per share (US$) 0.13 0.02 B. Diluted earnings per share Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Net profit attributable to the ordinary shareholders of the Company (US$m) C 165 7 Weighted average number of ordinary shares and dilutive potential ordinary shares outstanding D 1,293,016,703 324,884,282 Diluted earnings per share (US$) 0.13 0.02 C. Reconciliation of earnings used in calculating basic and diluted earnings per share Six months ended 30 June US$m Note 2026 2025 (Unaudited) (Unaudited) Net profit attributable to shareholders of the Company, as presented in the consolidated income statement 165 10 Less: net profit attributable to Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares E(i) — (3) Net profit attributable to the ordinary shareholders of the Company 165 7 Interim condensed consolidated financial statements 70
Page 72
10 EARNINGS PER SHARE (continued) D. Weighted average number of shares used as the denominator Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Issued ordinary shares at 1 January 24 1,276,005,277 939,953,815 Retrospective adjustment for Share Consolidation 24 — (626,635,879) Effect of vesting of shares under the Group's Equity Incentive Plans 24 1,825,048 — Weighted average number of ordinary shares for basic earnings per share 1,277,830,325 313,317,936 Adjustments for calculation of diluted earnings per share: RSUs and share options granted under the Group's Equity Incentive Plans E(ii), 27 15,186,378 11,566,346 Weighted average number of ordinary shares and dilutive potential ordinary shares for diluted earnings per share 1,293,016,703 324,884,282 The denominator of the EPS calculation is calculated using the weighted average number of outstanding ordinary shares and dilutive potential ordinary shares during the period. The shares held by employee share- based trust are not considered to be outstanding ordinary shares or potential ordinary shares for the purpose of basic and diluted earnings per share calculation. E. Information concerning the calculation of earnings per share (i) Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares Prior to the Conversion of Shares on 7 July 2025, as described in Note 24.1 , net profit attributable to shareholders of the Company was allocated to Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares on the basis that the outstanding Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares had been converted to ordinary shares on a 1 to 1 basis. On 7 July 2025, Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares were mandatorily converted into 2,594,663,913 ordinary shares (which became 864,887,971 ordinary shares after the Share Consolidation) of the Company, please refer to Note 24 for details. The impact of conversion are not included in the calculation of basic and diluted earnings per share for the six months ended 30 June 2025 as the listing condition was not met as at 30 June 2025. To provide financial information for management’s decision-making and internal performance management purposes, the earnings per share for the six months ended 30 June 2025 are adjusted on the basis that the Conversion of Shares was completed as at 1 January 2025. Please refer to Note 4.4 for details. (ii) RSUs and share options granted to employees RSUs and share options granted to employees under the Share Option and RSU Plan and the Share Award Plan are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The RSUs and share options have not been included in the determination of basic earnings per share. Details relating to the RSUs and share options are set out in Note 27. 11 DIVIDENDS For the six months ended 30 June 2026, there were no dividends paid or declared to the shareholders of the Company (six months ended 30 June 2025: US$nil). Interim condensed consolidated financial statements 71
Page 73
12 INTANGIBLE ASSETS US$m Goodwill Distribution rights Computer software and others Total Cost As at 1 January 2025 1,562 1,709 367 3,638 Additions — 52 28 80 Disposals — — (13) (13) Foreign exchange movements 36 75 3 114 As at 31 December 2025 1,598 1,836 385 3,819 Additions — — 15 15 Disposals — — (3) (3) Remeasurement — (21) — (21) Foreign exchange movements (36) (73) (9) (118) As at 30 June 2026 (Unaudited) 1,562 1,742 388 3,692 Accumulated amortisation and impairment As at 1 January 2025 (55) (270) (228) (553) Amortisation — (31) (45) (76) Disposals — — 12 12 Foreign exchange movements 1 (9) (4) (12) As at 31 December 2025 (54) (310) (265) (629) Amortisation — (30) (21) (51) Disposals — — 2 2 Foreign exchange movements 3 17 5 25 As at 30 June 2026 (Unaudited) (51) (323) (279) (653) Net book value As at 31 December 2025 1,544 1,526 120 3,190 As at 30 June 2026 (Unaudited) 1,511 1,419 109 3,039 Interim condensed consolidated financial statements 72
Page 74
13 INVESTMENTS IN ASSOCIATES US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Investments in associates 429 460 The Group's interests in its key associate are as follows: Group's interest % Entity Place of incorporation Principal activity Type of investments Type of shares held As at 30 June 2026 As at 31 December 2025 (Unaudited) PT Asuransi BRI Life (“BRI Life”) Indonesia Life insurance Associate Ordinary 43.96 % 43.96 % All associates are unlisted. Dividend declared by/received from BRI Life to the Group during the six months ended 30 June 2026 was US$7m (six months ended 30 June 2025: US$4m). 14 INVESTMENT PROPERTY US$m Fair value As at 1 January 2025 466 Capitalised subsequent expenditures 1 Transfer to property, plant and equipment (9) Fair value gains 2 As at 31 December 2025 460 Capitalised subsequent expenditures 1 Fair value gains 2 Foreign exchange movements (16) As at 30 June 2026 (Unaudited) 447 Interim condensed consolidated financial statements 73
Page 75
15 INSURANCE AND REINSURANCE CONTRACT BALANCES Insurance contracts US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Insurance contract assets 738 715 Insurance contract liabilities (52,272) (49,653) Total (51,534) (48,938) Reinsurance contracts held US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Reinsurance contract assets 2,591 2,722 Reinsurance contract liabilities (572) (465) Total 2,019 2,257 The following table sets out the carrying amounts of insurance and reinsurance contracts expected to be recovered/(settled) more than 12 months after the reporting date. US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Insurance contract assets 2,411 2,276 Insurance contract liabilities (41,315) (39,594) Reinsurance contract assets 2,663 2,701 Reinsurance contract liabilities (1,226) (1,032) The estimates of the present value of future cash flows from insurance and reinsurance contract assets represent the Group’s maximum exposure to credit risk from these assets. Insurance and reinsurance contracts (a) Movement in insurance and reinsurance contract balances The following tables present the movements of net carrying amounts of insurance contracts issued and reinsurance contracts held during the period. The changes include amounts that are recognised in profit or loss and OCI, and movements due to cash flows. There are two forms of tables presented: • Tables which analyse movements in the liabilities for remaining coverage and movements in the liabilities for incurred claims separately, and reconcile these movements to the line items in the consolidated income statement and consolidated statement of comprehensive income. • Tables which analyse movement of contracts by measurement components including estimates of the present value of future cash flows, risk adjustment for non-financial risk and the CSM. Interim condensed consolidated financial statements 74
Page 76
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (i) (a) Insurance contracts measured under the GMM and the VFA1 Analysis by remaining coverage and incurred claims Six months ended 30 June 2026 (Unaudited) Liabilities for remaining coverage Liabilities for incurred claims TotalUS$m Notes Excluding loss component Loss component Opening insurance contract assets 916 (15) (189) 712 Opening insurance contract liabilities (48,609) (247) (727) (49,583) Net opening balance (47,693) (262) (916) (48,871) Contracts under the modified retrospective approach 38 — — 38 Contracts under the fair value approach 369 — — 369 Other contracts 1,080 — — 1,080 Insurance revenue 5 1,487 — — 1,487 Incurred claims and other insurance service expenses — 21 (579) (558) Amortisation of insurance acquisition cash flows (397) — — (397) Losses and reversals of losses on onerous contracts — (51) — (51) Adjustments to liabilities for incurred claims — — 6 6 Insurance service expenses (397) (30) (573) (1,000) Investment components 2,195 — (2,195) — Insurance service result 3,285 (30) (2,768) 487 Net finance income/(expenses) from insurance contracts 6 (401) (4) 3 (402) Foreign exchange movements 1,121 10 21 1,152 Total changes in the interim consolidated income statement and interim consolidated statement of comprehensive income 4,005 (24) (2,744) 1,237 Cash flows Premium received (8,124) — — (8,124) Claims and other insurance service expenses paid; including investment components — — 2,711 2,711 Insurance acquisition cash flows 1,590 — — 1,590 Total cash flows (6,534) — 2,711 (3,823) Net closing balance (50,222) (286) (949) (51,457) Closing insurance contract assets 960 (25) (197) 738 Closing insurance contract liabilities (51,182) (261) (752) (52,195) Net closing balance (50,222) (286) (949) (51,457) Interim condensed consolidated financial statements 75 1 GMM represents General Measurement Method and VFA represents Variable Fee Approach.
Page 77
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (i) (a) Insurance contracts measured under the GMM and the VFA (continued) Analysis by remaining coverage and incurred claims (continued) Year ended 31 December 2025 Liabilities for remaining coverage Liabilities for incurred claims TotalUS$m Notes Excluding loss component Loss component Opening insurance contract assets 762 (24) (69) 669 Opening insurance contract liabilities (40,186) (189) (1,187) (41,562) Net opening balance (39,424) (213) (1,256) (40,893) Contracts under the modified retrospective approach 86 — — 86 Contracts under the fair value approach 805 — — 805 Other contracts 1,831 — — 1,831 Insurance revenue 5 2,722 — — 2,722 Incurred claims and other insurance service expenses — 49 (1,097) (1,048) Amortisation of insurance acquisition cash flows (708) — — (708) Losses and reversals of losses on onerous contracts — (85) — (85) Adjustments to liabilities for incurred claims — — (36) (36) Insurance service expenses (708) (36) (1,133) (1,877) Investment components 3,924 — (3,924) — Insurance service result 5,938 (36) (5,057) 845 Net finance income/(expenses) from insurance contracts 6 (2,373) (9) 8 (2,374) Foreign exchange movements (1,459) (4) (9) (1,472) Total changes in the consolidated income statement and consolidated statement of comprehensive income 2,106 (49) (5,058) (3,001) Cash flows Premium received (12,907) — — (12,907) Claims and other insurance service expenses paid; including investment components — — 5,398 5,398 Insurance acquisition cash flows 2,532 — — 2,532 Total cash flows (10,375) — 5,398 (4,977) Net closing balance (47,693) (262) (916) (48,871) Closing insurance contract assets 916 (15) (189) 712 Closing insurance contract liabilities (48,609) (247) (727) (49,583) Net closing balance (47,693) (262) (916) (48,871) Interim condensed consolidated financial statements 76
Page 78
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (i) (a) Insurance contracts measured under the GMM and the VFA (continued) Analysis by measurement component Six months ended 30 June 2026 (Unaudited) CSM US$m Notes Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under fair value transition approach Other contracts Total Opening insurance contract assets 2,322 (150) — (122) (1,338) 712 Opening insurance contract liabilities (43,666) (596) (151) (1,486) (3,684) (49,583) Net opening balance (41,344) (746) (151) (1,608) (5,022) (48,871) CSM recognised for services provided 5 — — 10 91 335 436 Change in risk adjustment for non- financial risk for risk expired 5 — 40 — — — 40 Experience adjustments 56 — — — — 56 Changes related to current services 56 40 10 91 335 532 Contracts initially recognised during the period 1,135 (62) — — (1,086) (13) Changes in estimates that adjust the CSM 218 (8) — (7) (203) — Changes in estimates that result in losses and reversals of losses on onerous contracts (37) (1) — — — (38) Changes related to future services 1,316 (71) — (7) (1,289) (51) Adjustments to liabilities for incurred claims 6 — — — — 6 Changes related to past services 6 — — — — 6 Insurance service result 1,378 (31) 10 84 (954) 487 Net finance income/(expenses) from insurance contracts 6 (368) 1 (2) (1) (32) (402) Foreign exchange movements 971 17 7 19 138 1,152 Total changes in the interim consolidated income statement and interim consolidated statement of comprehensive income 1,981 (13) 15 102 (848) 1,237 Cash flows Premium received (8,124) — — — — (8,124) Claims and other insurance service expenses paid; including investment components 2,711 — — — — 2,711 Insurance acquisition cash flows 1,590 — — — — 1,590 Total cash flows (3,823) — — — — (3,823) Net closing balance (43,186) (759) (136) (1,506) (5,870) (51,457) Closing insurance contract assets 2,387 (147) — (113) (1,389) 738 Closing insurance contract liabilities (45,573) (612) (136) (1,393) (4,481) (52,195) Net closing balance (43,186) (759) (136) (1,506) (5,870) (51,457) Interim condensed consolidated financial statements 77
Page 79
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (i) (a) Insurance contracts under the GMM and the VFA (continued) Analysis by measurement component (continued) Year ended 31 December 2025 CSM US$m Notes Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under fair value transition approach Other contracts Total Opening insurance contract assets 1,678 (96) — (147) (766) 669 Opening insurance contract liabilities (36,635) (560) (156) (1,397) (2,814) (41,562) Net opening balance (34,957) (656) (156) (1,544) (3,580) (40,893) CSM recognised for services provided 5 — — 21 196 546 763 Change in risk adjustment for non- financial risk for risk expired 5 — 85 — — — 85 Experience adjustments 118 — — — — 118 Changes related to current services 118 85 21 196 546 966 Contracts initially recognised during the period 1,716 (107) — — (1,627) (18) Changes in estimates that adjust the CSM 504 (51) 1 (244) (210) — Changes in estimates that result in losses and reversals of losses on onerous contracts (59) (8) — — — (67) Changes related to future services 2,161 (166) 1 (244) (1,837) (85) Adjustments to liabilities for incurred claims (36) — — — — (36) Changes related to past services (36) — — — — (36) Insurance service result 2,243 (81) 22 (48) (1,291) 845 Net finance expenses from insurance contracts 6 (2,304) — (4) (8) (58) (2,374) Foreign exchange movements (1,349) (9) (13) (8) (93) (1,472) Total changes in the consolidated income statement and consolidated statement of comprehensive income (1,410) (90) 5 (64) (1,442) (3,001) Cash flows Premium received (12,907) — — — — (12,907) Claims and other insurance service expenses paid; including investment components 5,398 — — — — 5,398 Insurance acquisition cash flows 2,532 — — — — 2,532 Total cash flows (4,977) — — — — (4,977) Net closing balance (41,344) (746) (151) (1,608) (5,022) (48,871) Closing insurance contract assets 2,322 (150) — (122) (1,338) 712 Closing insurance contract liabilities (43,666) (596) (151) (1,486) (3,684) (49,583) Net closing balance (41,344) (746) (151) (1,608) (5,022) (48,871) Interim condensed consolidated financial statements 78
Page 80
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (i) (b) Insurance contracts measured under the PAA Analysis by remaining coverage and incurred claims Six months ended 30 June 2026 (Unaudited) Liabilities for remaining coverage Liabilities for incurred claims TotalUS$m Note Excluding loss component Loss component Estimates of PV of FCF Risk Adjustment Opening insurance contract assets — — 3 — 3 Opening insurance contract liabilities (28) (2) (38) (2) (70) Net opening balance (28) (2) (35) (2) (67) Other contracts 89 — — — 89 Insurance revenue 5 89 — — — 89 Incurred claims and other insurance service expenses — — (72) — (72) Amortisation of insurance acquisition cash flows (12) — — — (12) Adjustments to liabilities for incurred claims — — 2 1 3 Insurance service expenses (12) — (70) 1 (81) Insurance service result 77 — (70) 1 8 Total changes in the interim consolidated income statement and interim consolidated statement of comprehensive income 77 — (70) 1 8 Cash flows Premium received (99) — — — (99) Claims and other insurance service expenses paid; including investment components — — 66 — 66 Insurance acquisition cash flows 15 — — — 15 Total cash flows (84) — 66 — (18) Net closing balance (35) (2) (39) (1) (77) Closing insurance contract assets — — — — — Closing insurance contract liabilities (35) (2) (39) (1) (77) Net closing balance (35) (2) (39) (1) (77) Interim condensed consolidated financial statements 79
Page 81
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (i) (b) Insurance contracts measured under the PAA (continued) Analysis by remaining coverage and incurred claims (continued) Year ended 31 December 2025 Liabilities for remaining coverage Liabilities for incurred claims TotalUS$m Note Excluding loss component Loss component Estimates of PV of FCF Risk Adjustment Opening insurance contract assets (1) — 15 — 14 Opening insurance contract liabilities (24) (3) (55) (2) (84) Net opening balance (25) (3) (40) (2) (70) Other contracts 189 — — — 189 Insurance revenue 5 189 — — — 189 Incurred claims and other insurance service expenses — — (158) (1) (159) Amortisation of insurance acquisition cash flows (30) — — — (30) Losses and reversals of losses on onerous contracts — 1 — — 1 Adjustments to liabilities for incurred claims — — 14 1 15 Insurance service expenses (30) 1 (144) — (173) Insurance service result 159 1 (144) — 16 Foreign exchange movements (2) — (2) — (4) Total changes in the consolidated income statement and consolidated statement of comprehensive income 157 1 (146) — 12 Cash flows Premium received (190) — — — (190) Claims and other insurance service expenses paid; including investment components — — 151 — 151 Insurance acquisition cash flows 30 — — — 30 Total cash flows (160) — 151 — (9) Net closing balance (28) (2) (35) (2) (67) Closing insurance contract assets — — 3 — 3 Closing insurance contract liabilities (28) (2) (38) (2) (70) Net closing balance (28) (2) (35) (2) (67) Interim condensed consolidated financial statements 80
Page 82
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (ii) (a) Reinsurance contracts held measured under the GMM Analysis by remaining coverage and incurred claims Six months ended 30 June 2026 (Unaudited) Assets for remaining coverage Assets for incurred claims TotalUS$m Excluding loss- recovery component Loss- recovery component Opening reinsurance contracts held assets 2,395 48 274 2,717 Opening reinsurance contracts held liabilities (644) 25 155 (464) Net opening balance 1,751 73 429 2,253 Allocation of reinsurance premium paid (168) — — (168) Recoveries of incurred claims and other insurance service expenses (1) (6) 134 127 Recoveries and reversals of recoveries of losses on onerous underlying contracts — 18 — 18 Adjustments to assets for incurred claims — — 4 4 Amounts recoverable from reinsurers (1) 12 138 149 Investment components and premium refunds (215) — 215 — Net expenses from reinsurance contracts (384) 12 353 (19) Effect of changes in non-performance risk of reinsurers 2 — — 2 Net finance income/(expenses) from reinsurance contracts (166) 1 — (165) Foreign exchange movements (37) (3) (14) (54) Total changes in the interim consolidated income statement and interim consolidated statement of comprehensive income (585) 10 339 (236) Cash flows Premium paid 356 — — 356 Amounts received — — (358) (358) Total cash flows 356 — (358) (2) Net closing balance 1,522 83 410 2,015 Closing reinsurance contracts held assets 2,273 50 264 2,587 Closing reinsurance contracts held liabilities (751) 33 146 (572) Net closing balance 1,522 83 410 2,015 Interim condensed consolidated financial statements 81
Page 83
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (ii) (a) Reinsurance contracts held measured under the GMM (continued) Analysis by remaining coverage and incurred claims (continued) Year ended 31 December 2025 Assets for remaining coverage Assets for incurred claims TotalUS$m Excluding loss- recovery component Loss- recovery component Opening reinsurance contracts held assets 2,302 24 355 2,681 Opening reinsurance contracts held liabilities (439) 7 68 (364) Net opening balance 1,863 31 423 2,317 Allocation of reinsurance premium paid (305) — — (305) Recoveries of incurred claims and other insurance service expenses — (12) 248 236 Recoveries and reversals of recoveries of losses on onerous underlying contracts — 52 — 52 Adjustments to assets for incurred claims — — (6) (6) Amounts recoverable from reinsurers — 40 242 282 Investment components and premium refunds (441) — 441 — Net expenses from reinsurance contracts (746) 40 683 (23) Effect of changes in non-performance risk of reinsurers 2 — — 2 Net finance income/(expenses) from reinsurance contracts (432) 3 (4) (433) Foreign exchange movements 10 (1) 3 12 Total changes in the consolidated income statement and consolidated statement of comprehensive income (1,166) 42 682 (442) Cash flows Premium paid 1,054 — — 1,054 Amounts received — — (676) (676) Total cash flows 1,054 — (676) 378 Net closing balance 1,751 73 429 2,253 Closing reinsurance contracts held assets 2,395 48 274 2,717 Closing reinsurance contracts held liabilities (644) 25 155 (464) Net closing balance 1,751 73 429 2,253 Interim condensed consolidated financial statements 82
Page 84
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (ii) (a) Reinsurance contracts held measured under the GMM (continued) Analysis by measurement component Six months ended 30 June 2026 (Unaudited) CSM US$m Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under fair value transition approach Other contracts Total Opening reinsurance contracts held assets 3,107 35 3 103 (531) 2,717 Opening reinsurance contracts held liabilities (1,185) 77 1 (9) 652 (464) Net opening balance 1,922 112 4 94 121 2,253 CSM recognised for services received — — — (7) (8) (15) Change in risk adjustment for non- financial risk for risk expired — (4) — — — (4) Experience adjustments (22) — — — — (22) Changes related to current services (22) (4) — (7) (8) (41) Contracts initially recognised during the period (100) 6 — — 96 2 Changes in recoveries of losses on onerous underlying contracts that adjust the CSM 1 — — 15 — 16 Changes in estimates that adjust the CSM 13 2 — (11) (4) — Changes related to future services (86) 8 — 4 92 18 Adjustments to assets for incurred claims 4 — — — — 4 Changes related to past services 4 — — — — 4 Net expenses from reinsurance contracts (104) 4 — (3) 84 (19) Effect of changes in non-performance risk of reinsurers 2 — — — — 2 Net finance income/(expenses) from reinsurance contracts (167) — — — 2 (165) Foreign exchange movements (41) (4) — (2) (7) (54) Total changes in the interim consolidated income statement and interim consolidated statement of comprehensive income (310) — — (5) 79 (236) Cash flows Premium paid 356 — — — — 356 Amounts received (358) — — — — (358) Total cash flows (2) — — — — (2) Net closing balance 1,610 112 4 89 200 2,015 Closing reinsurance contracts held assets 2,922 37 2 98 (472) 2,587 Closing reinsurance contracts held liabilities (1,312) 75 2 (9) 672 (572) Net closing balance 1,610 112 4 89 200 2,015 Interim condensed consolidated financial statements 83
Page 85
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (ii) (a) Reinsurance contracts held measured under the GMM (continued) Analysis by measurement component (continued) Year ended 31 December 2025 CSM US$m Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under fair value transition approach Other contracts Total Opening reinsurance contracts held assets 2,553 73 4 116 (65) 2,681 Opening reinsurance contracts held liabilities (427) 12 2 (11) 60 (364) Net opening balance 2,126 85 6 105 (5) 2,317 CSM recognised for services received — — (3) (15) (8) (26) Change in risk adjustment for non- financial risk for risk expired — (6) — — — (6) Experience adjustments (37) — — — — (37) Changes related to current services (37) (6) (3) (15) (8) (69) Contracts initially recognised during the period (205) 11 — — 199 5 Changes in recoveries of losses on onerous underlying contracts that adjust the CSM — — — 27 20 47 Changes in estimates that adjust the CSM 87 22 1 (25) (85) — Changes related to future services (118) 33 1 2 134 52 Adjustments to assets for incurred claims (6) — — — — (6) Changes related to past services (6) — — — — (6) Net expenses from reinsurance contracts (161) 27 (2) (13) 126 (23) Effect of changes in non-performance risk of reinsurers 2 — — — — 2 Net finance income/(expenses) from reinsurance contracts (437) — — 1 3 (433) Foreign exchange movements 14 — — 1 (3) 12 Total changes in the consolidated income statement and consolidated statement of comprehensive income (582) 27 (2) (11) 126 (442) Cash flows Premium paid 1,054 — — — — 1,054 Amounts received (676) — — — — (676) Total cash flows 378 — — — — 378 Net closing balance 1,922 112 4 94 121 2,253 Closing reinsurance contracts held assets 3,107 35 3 103 (531) 2,717 Closing reinsurance contracts held liabilities (1,185) 77 1 (9) 652 (464) Net closing balance 1,922 112 4 94 121 2,253 Interim condensed consolidated financial statements 84
Page 86
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (ii) (b) Reinsurance contracts held measured under the PAA Analysis by remaining coverage and incurred claims Six months ended 30 June 2026 (Unaudited) Assets for remaining coverage Assets for incurred claims TotalUS$m Excluding loss-recovery component Loss- recovery component Estimates of PV of FCF Risk Adjustment Opening reinsurance contracts held assets (2) — 7 — 5 Opening reinsurance contracts held liabilities — — (2) 1 (1) Net opening balance (2) — 5 1 4 Allocation of reinsurance premium paid (2) — — — (2) Recoveries of incurred claims and other insurance service expenses — — 3 — 3 Adjustments to assets for incurred claims — — (1) — (1) Amounts recoverable from reinsurers — — — 2 — 2 Net expenses from reinsurance contracts (2) — 2 — — Total changes in the interim consolidated income statement and interim consolidated statement of comprehensive income (2) — 2 — — Cash flows Premium paid 3 — — — 3 Amounts received — — (3) — (3) Total cash flows 3 — (3) — — Net closing balance (1) — 4 1 4 Closing reinsurance contracts held assets (2) — 6 — 4 Closing reinsurance contracts held liabilities 1 — (2) 1 — Net closing balance (1) — 4 1 4 Interim condensed consolidated financial statements 85
Page 87
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (a) Movement in insurance and reinsurance contract balances (continued) (ii) (b) Reinsurance contracts held measured under the PAA (continued) Analysis by remaining coverage and incurred claims (continued) Year ended 31 December 2025 Assets for remaining coverage Assets for incurred claims TotalUS$m Excluding loss-recovery component Loss- recovery component Estimates of PV of FCF Risk Adjustment Opening reinsurance contracts held assets 2 — 12 1 15 Opening reinsurance contracts held liabilities — — (2) — (2) Net opening balance 2 — 10 1 13 Allocation of reinsurance premium paid (10) — — — (10) Recoveries of incurred claims and other insurance service expenses — — 10 — 10 Recoveries and reversals of recoveries of losses on onerous underlying contracts — — — — — Adjustments to assets for incurred claims — — (3) — (3) Amounts recoverable from reinsurers — — 7 — 7 Net expenses from reinsurance contracts (10) — 7 — (3) Foreign exchange movements — — 1 — 1 Total changes in the consolidated income statement and consolidated statement of comprehensive income (10) — 8 — (2) Cash flows Premium paid 6 — — — 6 Amounts received — — (13) — (13) Total cash flows 6 — (13) — (7) Net closing balance (2) — 5 1 4 Closing reinsurance contracts held assets (2) — 7 — 5 Closing reinsurance contracts held liabilities — — (2) 1 (1) Net closing balance (2) — 5 1 4 Interim condensed consolidated financial statements 86
Page 88
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (b) Effect of contracts initially recognised in the period/year The following tables summarise the effect on the measurement components arising from the initial recognition of insurance and reinsurance contracts held not measured under the PAA in the year. (i) Insurance contracts US$m Profitable contracts issued Onerous contracts issued Total 30 June 2026 (Unaudited) Claims and other insurance service expenses payable (5,988) (69) (6,057) Insurance acquisition cash flows (1,599) (54) (1,653) Estimates of present value of cash outflows (7,587) (123) (7,710) Estimates of present value of cash inflows 8,732 113 8,845 Risk adjustment for non-financial risk (59) (3) (62) Contractual Service Margin (CSM) (1,086) — (1,086) Amount included in insurance contract assets/liabilities for the period — (13) (13) 31 December 2025 Claims and other insurance service expenses payable (9,387) (355) (9,742) Insurance acquisition cash flows (2,546) (74) (2,620) Estimates of present value of cash outflows (11,933) (429) (12,362) Estimates of present value of cash inflows 13,664 414 14,078 Risk adjustment for non-financial risk (104) (3) (107) Contractual Service Margin (CSM) (1,627) — (1,627) Amount included in insurance contract assets/liabilities for the year — (18) (18) Interim condensed consolidated financial statements 87
Page 89
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (b) Effect of contracts initially recognised in the period/year (continued) (ii) Reinsurance contracts held US$m Contracts initiated 30 June 2026 (Unaudited) Estimates of present value of cash inflows 574 Estimates of present value of cash outflows (674) Risk adjustment for non-financial risk 6 Contractual Service Margin (CSM) 96 Amount included in reinsurance contract assets/liabilities for the period 2 31 December 2025 Estimates of present value of cash inflows 1,678 Estimates of present value of cash outflows (1,883) Risk adjustment for non-financial risk 11 Contractual Service Margin (CSM) 199 Amount included in reinsurance contract assets/liabilities for the year 5 (c) Contractual service margin The following table illustrates the expected recognition pattern of the remaining CSM in profit or loss after the reporting date for contracts not measured under the PAA. As at 30 June 2026 (Unaudited) As at 31 December 2025 US$m Insurance contracts Reinsurance contracts held Total Insurance contracts Reinsurance contracts held Total Within one year 838 (32) 806 745 (22) 723 One to five years 2,489 (81) 2,408 2,176 (40) 2,136 Five to ten years 1,846 (61) 1,785 1,603 (21) 1,582 More than ten years 2,339 (119) 2,220 2,257 (136) 2,121 Total 7,512 (293) 7,219 6,781 (219) 6,562 Interim condensed consolidated financial statements 88
Page 90
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (d) Methodology and assumptions Fulfilment cashflows comprise: • estimates of future cash flows; • an adjustment to reflect the time value of money and the financial risk related to future cash flows, to the extent that the financial risks are not included in the estimates of future cash flows; and • a risk adjustment for non-financial risk. The determination of fulfilment cash flows involves the use of estimates and assumptions. Review of the valuation assumptions and methods is performed regularly to reduce the Group’s exposure to uncertainty by ensuring assumptions for liability risks remain appropriate. Estimates of future cash flows The Group estimates future cash flows by determining the expected value or probability-weighted mean of the full range of possible outcomes. Assumptions are made about mortality and morbidity rates, policyholder behaviour, expenses and other factors over the life of the products. This information includes both internal and external historical data about claims and other experience, updated to reflect current expectations of future events. Mortality Mortality assumptions have been determined by each business unit based on historical experience where statistically credible and with reference to either pricing assumptions or industry experience where there is limited claims experience available. The assumptions have been expressed as a percentage of either a standard industry experience table or set as a percentage of reinsurance rates. Morbidity Similar to mortality, morbidity assumptions have been developed based on historical experience where statistically credible, with allowance for current and future trends, and with reference to pricing assumptions where the data available is limited or not statistically credible. The assumptions have either been set as a percentage of reinsurance rates or expressed as a loss ratio applied to the premium earned. Persistency Persistency assumptions include lapses, premium holidays, partial withdrawals and renewals, and policy loan take up and repayment. The assumptions differ by policy year and are usually split by product or product type. They have been determined by each business unit based on historical experience where statistically credible, with allowance for current and future trends and with reference to pricing assumptions where the data available is limited or not statistically credible. Expenses Expense assumptions are mainly based on recent expense analysis. The purpose of the expense analysis is to allocate total expenses between acquisition and maintenance activities, and then to allocate the acquisition and maintenance expenses that can be directly attributed to the portfolio of insurance contracts to derive unit cost assumptions. Reinsurance Reinsurance assumptions have been developed by each business unit based on the reinsurance arrangements in force as at the reporting date and the recent historical and expected future experience. Policyholder dividends, profit sharing and interest crediting The projected dividends, profit sharing and crediting rate assumptions have been determined by each business unit taking into account the investment return assumptions and profit sharing rules (from regulatory and/or internal governance requirements), as well as other commercial considerations such as market competition and policyholders’ reasonable expectations. Interim condensed consolidated financial statements 89
Page 91
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (d) Methodology and assumptions (continued) Discount rates All cash flows are discounted using risk-free yield curves adjusted to reflect the characteristics of the cash flows and the liquidity of the insurance contracts. The Group generally determines the risk-free rates using either government bond yields or swap yield curve. The yield curve is interpolated between the last available market data point and an ultimate forward rate, which reflects long-term real interest rate and inflation expectations. Although the ultimate forward rate is subject to revision, it is expected to be stable and would change only with changes to long-term expectations. To reflect the liquidity characteristics of the insurance contracts, the risk- free yield curves are adjusted by an illiquidity premium. Illiquidity premiums are generally determined by adjusting the return of a reference portfolio to eliminate any factors that are not relevant to the insurance contracts. The tables below set out the spot rates used to discount the cash flows of insurance contracts for major currencies. As at 30 June 2026 (Unaudited) 1 year 5 years 10 years 15 years 20 years Spot rates Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium US$ 3.97 % 4.76 % 4.19 % 4.98 % 4.46 % 5.25 % 4.85 % 5.64 % 5.08 % 5.87 % HKD 3.34 % 3.93 % 3.28 % 3.87 % 3.40 % 4.00 % 3.55 % 4.14 % 3.62 % 4.22 % THB 1.02 % 1.41 % 1.58 % 1.98 % 2.16 % 2.56 % 2.75 % 3.15 % 3.19 % 3.58 % JPY 1.16 % 1.29 % 1.94 % 2.07 % 2.74 % 2.87 % 3.26 % 3.39 % 3.85 % 3.99 % CNY 1.12 % 1.38 % 1.44 % 1.70 % 1.76 % 2.02 % 2.21 % 2.47 % 2.64 % 2.90 % As at 31 December 2025 1 year 5 years 10 years 15 years 20 years Spot rates Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium US$ 3.45 % 4.25 % 3.70 % 4.50 % 4.20 % 5.00 % 4.67 % 5.47 % 4.97 % 5.76 % HKD 2.63 % 3.44 % 2.72 % 3.54 % 3.10 % 3.92 % 3.33 % 4.15 % 3.45 % 4.27 % THB 1.08 % 1.67 % 1.30 % 1.88 % 1.73 % 2.32 % 2.18 % 2.76 % 2.63 % 3.22 % JPY 0.91 % 1.04 % 1.56 % 1.69 % 2.10 % 2.22 % 2.61 % 2.73 % 3.12 % 3.25 % CNY 1.34 % 1.75 % 1.64 % 2.05 % 1.87 % 2.28 % 2.27 % 2.68 % 2.68 % 3.09 % Cash flows that vary based on the returns on any financial underlying items are adjusted for the effect of that variability using risk-neutral measurement techniques and discounted using the risk-free rates as adjusted for illiquidity. When the present value of future cash flows is estimated by stochastic modelling, the cash flows are discounted at scenario-specific rates calibrated, on average, to be the risk-free rates as adjusted for illiquidity. Interim condensed consolidated financial statements 90
Page 92
15 INSURANCE AND REINSURANCE CONTRACT BALANCES (continued) Insurance and reinsurance contracts (continued) (d) Methodology and assumptions (continued) Risk adjustments for non-financial risk Risk adjustments for non-financial risk are generally determined by considering the expected cash flows arising from insurance contracts in each segment for each of the geographical markets in which the Group operates, consistent with the way that non-financial risk is managed. Risk adjustments are determined separately from estimates from the present value of future cash flows, using the confidence level technique. Applying a confidence level technique, the Group estimates the probability distribution of the expected present value of the future cash flows from insurance contracts at each reporting date and calculates the risk adjustment for non-financial risk as the excess of the value at risk at the 75th percentile (the target confidence level) over the expected present value of the future cash flows. 16 FINANCIAL INVESTMENTS The following tables analyse the Group’s financial investments by type and nature. The Group manages its financial investments in two distinct categories: Unit-linked Investments and Policyholder and Shareholder Investments. Unit-linked contract holders are responsible for allocation of their policy values amongst investment options offered by the Group. The investment risk in respect of Unit-linked Investments is generally wholly borne by the customers and these investments are measured at FVTPL. Policyholder and Shareholder Investments include all financial investments other than Unit-linked Investments. The investment risk in respect of Policyholder and Shareholder Investments is partially or wholly borne by the Group. Policyholder and Shareholder Investments are further categorised as Participating Funds, other participating business with discretionary expected sharing with policyholders and underlying distinct investment portfolios (“Other Participating Business with Distinct Portfolios”) and Other Policyholder and Shareholder investments. Other Participating Business with Distinct Portfolios refers to business where it is expected that the policyholder will receive, at the discretion of the insurer, additional benefits based on the performance of underlying segregated investment assets where this asset segregation is supported by an explicit statutory reserve and reporting in the relevant territory. The reason for separately analysing financial investments held by Participating Funds and Other Participating Business with Distinct Portfolios is that Participating Funds are subject to local regulations that generally prescribe a minimum proportion of policyholder participation in declared dividends, and for Other Participating Business with Distinct Portfolios is, as explained above, expected that the policyholder will receive, at the discretion of the insurer, additional benefits based on the performance of the underlying segregated investment assets where this asset segregation is supported by an explicit statutory reserve and reporting in the relevant territory. For Participating Funds and Other Participating Business with Distinct Portfolios, the Group measures equity shares and interests in investment funds at FVTPL, and debt securities at FVOCI, except for those being mandatory measured at FVTPL. Other Policyholder and Shareholder Investments are distinct from Unit-linked Investments, Participating Funds and Other Participating Business with Distinct Portfolios as there is no direct contractual or regulatory requirement governing the amount, if any, for allocation to policyholders. The Group measures equity shares and interests in investment funds at FVTPL in this category, and debt securities at FVOCI except for those being mandatory measured or designated at FVTPL. The investment risk from investments in this category directly impacts the Group's financial statements. “FVTPL” indicates financial investments classified as fair value through profit or loss and “FVOCI” indicates financial investments classified as fair value through other comprehensive income. Interim condensed consolidated financial statements 91
Page 93
16 FINANCIAL INVESTMENTS (continued) 16.1 Debt securities In compiling the tables below, external international issue ratings have been used in accordance with the Group’s credit risk assessment framework. Where external international issue ratings are not readily available, external local issue ratings are used by mapping to external international ratings based on an internal rating methodology. Where there is no external international or local issue rating, the external credit rating of the issuer is used and if not available, the debt security is classified as not rated. The total securities (excluding government bonds) that are not rated as at 30 June 2026 are US$321m (31 December 2025: US$273m). Standard and Poor’s and Fitch Moody’s Internal ratings reported as AAA Aaa AAA AA+ to AA- Aa1 to Aa3 AA A+ to A- A1 to A3 A BBB+ to BBB- Baa1 to Baa3 BBB BB+ and below Ba1 and below Below investment grade Debt securities by type comprise the following: Policyholder and shareholder investments US$m Participating funds and other participating business with distinct portfolios Other policyholder and shareholder investments Unit-linked Total FVTPL (Mandatory) FVOCI FVTPL (Mandatory) FVTPL (Designated) (i) FVOCI FVTPL (Mandatory) 30 June 2026 (Unaudited) Government bonds United States — 2,006 — 91 113 — 2,210 Japan — — — — 1,283 — 1,283 Thailand — — — — 12,166 — 12,166 Other 7 692 — 4 470 — 1,173 Sub-total 7 2,698 — 95 14,032 — 16,832 Government agency bonds (ii) AAA — 23 — — 275 — 298 AA — 328 — 2 105 — 435 A — 119 — — 491 — 610 BBB — 83 — — 480 — 563 Below investment grade or not rated — 7 — — 14 — 21 Sub-total — 560 — 2 1,365 — 1,927 Corporate bonds AAA — 225 — — 24 — 249 AA 460 1,106 1 12 435 — 2,014 A 1,558 4,292 178 — 2,546 — 8,574 BBB 178 3,189 105 — 2,193 — 5,665 Below investment grade or not rated 27 368 6 — 408 107 916 Sub-total 2,223 9,180 290 12 5,606 107 17,418 Interim condensed consolidated financial statements 92
Page 94
16 FINANCIAL INVESTMENTS (continued) 16.1 Debt securities (continued) Policyholder and shareholder investments US$m Participating funds and other participating business with distinct portfolios Other policyholder and shareholder investments Unit-linked Total FVTPL (Mandatory) FVOCI FVTPL (Mandatory) FVTPL (Designated) (i) FVOCI FVTPL (Mandatory) 30 June 2026 (Unaudited) Structured securities (iii) AAA 302 700 1 — 433 — 1,436 AA 165 1,061 1 — 499 — 1,726 A 58 994 9 — 488 — 1,549 BBB 28 123 45 — 13 — 209 Below investment grade or not rated 9 29 3 — — — 41 Sub-total 562 2,907 59 — 1,433 — 4,961 Total 2,792 15,345 349 109 22,436 107 41,138 Notes: (i) Debt securities backing certain insurance contract liabilities are designated at FVTPL to substantially reduce any accounting mismatch arising from changes in the fair value of these assets and changes in the carrying value of the related insurance contract liabilities. (ii) Government agency bonds comprise bonds issued by government-sponsored institutions such as national, provincial and municipal authorities and government-related entities. (iii) Structured securities include collateralised debt obligations, mortgage-backed securities and other asset-backed securities. Interim condensed consolidated financial statements 93
Page 95
16 FINANCIAL INVESTMENTS (continued) 16.1 Debt securities (continued) Policyholder and shareholder investments US$m Participating funds and other participating business with distinct portfolios Other policyholder and shareholder investments Unit-linked Total FVTPL (Mandatory) FVOCI FVTPL (Mandatory) FVTPL (Designated) (i) FVOCI FVTPL (Mandatory) 31 December 2025 Government bonds United States — 1,919 — 8 128 — 2,055 Japan — — — — 1,464 — 1,464 Thailand — — — — 13,872 — 13,872 Other — 578 — — 411 — 989 Sub-total — 2,497 — 8 15,875 — 18,380 Government agency bonds (ii) AAA — 17 — — 170 — 187 AA — 342 — — 118 — 460 A — 117 — — 548 — 665 BBB — 60 — — 598 — 658 Below investment grade or not rated — 5 — — 14 — 19 Sub-total — 541 — — 1,448 — 1,989 Corporate bonds AAA — 197 — — 53 — 250 AA 13 922 — — 449 — 1,384 A 810 3,710 127 — 2,522 — 7,169 BBB 99 2,096 128 — 2,051 — 4,374 Below investment grade or not rated 102 310 5 — 552 19 988 Sub-total 1,024 7,235 260 — 5,627 19 14,165 Structured securities (iii) AAA 411 751 1 — 647 — 1,810 AA 319 1,048 1 — 621 — 1,989 A 104 736 35 — 318 — 1,193 BBB 28 115 88 — 13 — 244 Below investment grade or not rated 17 14 — — — — 31 Sub-total 879 2,664 125 — 1,599 — 5,267 Others Certificate of deposits — — — — 19 — 19 Total 1,903 12,937 385 8 24,568 19 39,820 Notes: (i) Debt securities backing certain insurance contract liabilities are designated at FVTPL to substantially reduce any accounting mismatch arising from changes in the fair value of these assets and changes in the carrying value of the related insurance contract liabilities. (ii) Government agency bonds comprise bonds issued by government-sponsored institutions such as national, provincial and municipal authorities and government-related entities. (iii) Structured securities include collateralised debt obligations, mortgage-backed securities and other asset-backed securities. As at 30 June 2026, debt securities of US$4,034m (31 December 2025: US$4,588m), US$713m (31 December 2025: US$664m), US$16m (31 December 2025: US$18m) and US$5m (31 December 2025: US$6m) are restricted due to local regulatory requirements in Thailand, Macau, Indonesia and the Philippines, respectively. Interim condensed consolidated financial statements 94
Page 96
16 FINANCIAL INVESTMENTS (continued) 16.1 Debt securities (continued) As at 30 June 2026 , debt securities of US$259m (31 December 2025: US$213m), are subject to repurchase and forward agreements, whereby securities are sold to third parties with a concurrent agreement to repurchase the securities at a specified date. The securities related to the repurchase and forward agreements are not derecognised from the consolidated statement of financial position, but are retained within the appropriate financial asset classification. During the term of the repurchase and forward agreements, the counterparty is restricted from selling or pledging the transferred debt securities. Refer to Note 23 for additional information on the associated liabilities. 16.2 Equity securities Equity securities at FVTPL: Policyholder and shareholder investments US$m Participating funds and other participating business with distinct portfolios Other policyholder and shareholder investments Total 30 June 2026 (Unaudited) 170 49 219 31 December 2025 164 106 270 16.3 Interests in investment funds Interests in investment funds at FVTPL: Policyholder and shareholder investments US$m Participating funds and other participating business with distinct portfolios Other policyholder and shareholder investments Unit-linked Total 30 June 2026 (Unaudited) 4,315 2,039 5,054 11,408 31 December 2025 4,208 1,983 4,570 10,761 As at 30 June 2026, interests in investment funds of US$48m (31 December 2025: US$58m) are restricted due to local regulatory requirements in Macau. 16.4 Loans and deposits US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Accreting notes and promissory notes 423 438 Term deposits 512 494 Other financial receivables 11 12 Provision for impairment (6) (6) Total 940 938 Loans and deposits are measured at amortised cost. As at 30 June 2026, the accreting notes and promissory notes bear interest rates ranging from 3.8 per cent to 4.5 per cent (31 December 2025: 3.8 per cent to 4.5 per cent) per annum and are repayable upon maturity. Certain term deposits of US$42m as at 30 June 2026 (31 December 2025: US$40m) are restricted due to local regulatory requirements. Interim condensed consolidated financial statements 95
Page 97
17 DERIVATIVE FINANCIAL INSTRUMENTS The following summarises the Group's derivative exposure: Fair value US$m Notional amount Assets Liabilities 30 June 2026 (Unaudited) Foreign exchange contracts Forwards 8,813 128 (364) Cross-currency swaps 1,884 73 (42) Total foreign exchange contracts 10,697 201 (406) Interest rate swaps 340 2 (1) Others Warrants and options 598 63 — Bond forward contracts 3,405 37 (115) Other equity derivatives 50 10 — Total 15,090 313 (522) 31 December 2025 Foreign exchange contracts Forwards 10,043 156 (356) Cross-currency swaps 1,432 100 (21) Total foreign exchange contracts 11,475 256 (377) Interest rate swaps 159 4 — Others Warrants and options 586 61 — Bond forward contracts 2,724 69 (113) Other equity derivatives 126 17 — Total 15,070 407 (490) Notional amount of foreign exchange contracts refers to the receive leg of foreign exchange derivative transactions. Notional amounts presented in the above table reflect the aggregated positions of individual derivative on a gross basis, to give an indication of the overall scale of derivative transactions. The Group's derivatives are mainly over-the-counter (OTC) derivatives. OTC derivative contracts are individually negotiated between contracting parties and not cleared through an exchange. OTC derivatives include forwards, swaps and options. Derivatives are subject to various risks including market, liquidity and credit risks, similar to those related to the underlying financial instruments. Derivatives assets and derivative liabilities are recognised in the consolidated statement of financial position as financial assets at FVTPL and derivative financial liabilities, respectively. The Group’s derivative contracts are established to provide an economic hedge to financial exposures. The Group adopts hedge accounting in certain circumstances. The notional or contractual amounts associated with derivative financial instruments are not recorded as assets or liabilities in the consolidated statement of financial position as they do not represent the fair value of these transactions. Interim condensed consolidated financial statements 96
Page 98
17 DERIVATIVE FINANCIAL INSTRUMENTS (continued) Foreign exchange contracts Foreign exchange forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed price and settlement date. Currency swaps are contractual agreements that involve the exchange of both periodic and final amounts in two different currencies. Exposure to gains and losses on the foreign exchange contracts will increase or decrease over their respective lives as a function of maturity dates, interest and foreign exchange rates, implied volatility of the underlying indices and the timing of payments. Interest rate swaps Interest rate contracts are contractual agreements between two parties to exchange periodic payments in the same currency, each of which is computed on a different interest rate basis, on a specified notional amount. Most interest rate contracts involve the net exchange of payments calculated as the difference between the fixed and floating rate interest payments. Other derivatives Forward contracts are contractual obligations to buy or sell a financial instrument on a predetermined future date at a specified price. As at 30 June 2026 and 31 December 2025, the Group held a call option, pursuant to which the Group has the right to acquire a minority stake in a related company at a discounted price. Refer to Note 28 for details. Collateral under derivative transactions As at 30 June 2026, the Group held cash collateral of US$43m (31 December 2025: US$211m) and debt securities with a carrying amount of US$12m (31 December 2025: US$nil) for assets, and posted cash collateral of US$116m (31 December 2025: US$95m) and pledged debt securities with a carrying value of US$181m (31 December 2025: US$278m) for liabilities. The Group did not sell or repledge the collateral received. These transactions are conducted under terms that are usual and customary to collateralised transactions. Further information relating to cash collateral is included in Notes 19 and 23. Derivatives designated as hedging instruments As at 30 June 2026, the Group has designated certain foreign exchange derivative assets with fair values of US$32m (31 December 2025: US$81m), and certain foreign exchange derivative liabilities with fair values of US$98m (31 December 2025: US$32m) in cash flow hedges of foreign exchange risk. For details, please refer to Note 26 Foreign exchange rate risk. As at 30 June 2026 , the Group has also designated certain bond forward derivative assets with fair values of US$26m (31 December 2025: US$62m) and certain bond forward derivative liabilities with fair values of US$22m (31 December 2025: US$nil) in cash flow hedges of bond price risk. These hedging relationships were considered highly effective as at 30 June 2026 and 31 December 2025. For details, please refer to Note 26 Interest rate risk. Interim condensed consolidated financial statements 97
Page 99
18 FAIR VALUE MEASUREMENT Fair value hierarchy Fair value is the amount that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the consolidated statement of financial position are measured and classified in a hierarchy for disclosure purposes consisting of three “levels” based on the observability of inputs available in the marketplace used to measure their fair values (“Fair Value Hierarchy”) as discussed below: • Level 1: Fair value measurements that are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access as at the measurement date. Market price data is generally obtained from exchange or dealer markets. The Group does not adjust the quoted price for such instruments. Assets measured at fair value on a recurring basis and classified as Level 1 are actively traded equities, debt securities and interests in investment funds. • Level 2: Fair value measurements are based on observable inputs other than quoted prices included in Level 1, either directly or indirectly. These inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and other observable inputs such as interest rates and yield curves. Level 2 fair values are primarily determined using prices obtained from private pricing services and brokers, corroborated by internal review where necessary. Where such prices are not available, fair values are derived using internal valuation techniques based on observable market inputs. Assets and liabilities measured at fair value on a recurring basis and classified as Level 2 generally include debt securities, interests in investment funds and derivative contracts. • Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Unobservable inputs are only used to measure fair value to the extent that relevant observable inputs are not available, allowing for circumstances in which there is little, if any, market activity for the asset or liability. Assets and liabilities measured at fair value on a recurring basis and classified as Level 3 mainly include investment property, and private equity and private credit funds. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Group’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgement. In making the assessment, the Group considers factors specific to the asset or liability. Interim condensed consolidated financial statements 98
Page 100
18 FAIR VALUE MEASUREMENT (continued) 18.1 Fair value measurements on a recurring basis The Group applies the following methods and assumptions to estimate the fair value of financial instruments classified at FVTPL, financial instruments classified at FVOCI, derivative assets and liabilities and investment contract liabilities at fair value on a recurring basis. Debt securities, equity securities and interests in investment funds Fair values for debt securities are based on quoted market prices, where available. For those securities not actively traded, fair values are estimated using values obtained from brokers, private pricing services or by discounting expected future cash flows using a current market rate applicable to the yield, credit quality and maturity of the investment. Priority is given to values from independent sources when available, but overall the source of pricing and/or valuation technique is chosen with the objective of arriving at the price at which an orderly transaction would take place between market participants on the measurement date. The inputs to determining fair value that are relevant to fixed interest securities include, but are not limited to risk-free interest rates, the obligor’s credit spreads, foreign exchange rates and credit default rates. The fair values of listed equity securities are based on quoted market prices. The transaction price is used as the best estimate of fair value at inception. The fair values of private equity and private credit funds are based on the reported net assets value (“NAV”) in their financial statements, considering various factors including the accounting policies adopted by the investees, the restrictions and barriers preventing the Group from disposing of the investments, the Group's ownership percentage over the investee and other relevant factors. Derivative financial instruments The Group values its derivative financial assets and liabilities using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value a derivative depends on the contract terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. The Group generally uses similar models to estimate the fair value of similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be verified and model selection does not involve significant management judgement. Examples of inputs that are generally observable include foreign exchange spot and forward rates, benchmark interest rate curves and volatilities for commonly traded option products. Examples of inputs that may be unobservable include volatilities for less commonly traded option products and correlations between market factors. Investment contract liabilities without discretionary participation features (“DPF”) Investment contracts can be surrendered by the holder at any time. Accordingly, their fair value is not less than the amount payable on demand. The fair values are based on the fair value of the underlying items less any surrender charges. Interim condensed consolidated financial statements 99
Page 101
18 FAIR VALUE MEASUREMENT (continued) 18.1 Fair value measurements on a recurring basis (continued) A summary of assets and liabilities carried at fair value on a recurring basis according to fair value hierarchy is given below: Fair value hierarchy US$m Level 1 Level 2 Level 3 Total 30 June 2026 (Unaudited) Recurring fair value measurements Financial assets FVOCI Debt securities 2,494 35,178 109 37,781 Government bonds 2,452 14,278 — 16,730 Government agency bonds 42 1,883 — 1,925 Corporate bonds — 14,677 109 14,786 Structured securities — 4,340 — 4,340 FVTPL Debt securities 5 3,308 44 3,357 Government bonds 5 97 — 102 Government agency bonds — 2 — 2 Corporate bonds — 2,632 — 2,632 Structured securities — 577 44 621 Equity shares 36 3 180 219 Interests in investment funds 1,490 5,855 4,063 11,408 Derivative financial instruments — 256 57 313 Total assets on a recurring fair value measurement basis 4,025 44,600 4,453 53,078 % of Total 8% 84% 8% 100% Financial liabilities Investment contract liabilities without DPF — — 13 13 Derivative financial instruments — 522 — 522 Total liabilities on a recurring fair value measurement basis — 522 13 535 % of Total —% 98% 2% 100% Interim condensed consolidated financial statements 100
Page 102
18 FAIR VALUE MEASUREMENT (continued) 18.1 Fair value measurements on a recurring basis (continued) Fair value hierarchy US$m Level 1 Level 2 Level 3 Total 31 December 2025 Recurring fair value measurements Financial assets FVOCI Debt securities 2,415 34,975 115 37,505 Government bonds 2,370 16,002 — 18,372 Government agency bonds 45 1,944 — 1,989 Corporate bonds — 12,747 115 12,862 Structured securities — 4,263 — 4,263 Others — 19 — 19 FVTPL Debt securities — 2,268 47 2,315 Government bonds — 8 — 8 Corporate bonds — 1,303 — 1,303 Structured securities — 957 47 1,004 Equity shares 109 — 161 270 Interests in investment funds 1,525 5,467 3,769 10,761 Derivative financial instruments — 349 58 407 Total assets on a recurring fair value measurement basis 4,049 43,059 4,150 51,258 % of Total 8% 84% 8% 100% Financial liabilities Investment contract liabilities without DPF — — 17 17 Derivative financial instruments — 490 — 490 Total liabilities on a recurring fair value measurement basis — 490 17 507 % of Total —% 97% 3% 100% The Group’s policy is to recognise transfers of assets and liabilities between Level 1 and Level 2 at their fair values as at the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. During the six months ended 30 June 2026 and the year ended 31 December 2025, there was no movement of financial assets between Level 1 and Level 2. Interim condensed consolidated financial statements 101
Page 103
18 FAIR VALUE MEASUREMENT (continued) 18.1 Fair value measurements on a recurring basis (continued) Level 3 assets and liabilities The tables below set out a summary of changes in the Group’s Level 3 assets and liabilities measured at fair value on a recurring basis. US$m Debt securities Equity securities Interests in investment funds Derivative financial assets/ (liabilities) Investment contract liabilities without DPF As at 1 January 2026 162 161 3,769 58 (17) Net movement on investment contract liabilities — — — — 4 Total gains/(losses) Reported under investment return in the consolidated income statement 1 — 11 (1) — Reported under fair value reserve and foreign currency translation reserve in the consolidated statement of comprehensive income (2) — (31) — — Purchases 1 22 473 — — Sales (1) — (66) — — Transfer out of level 3 (8) (3) (93) — — As at 30 June 2026 (Unaudited) 153 180 4,063 57 (13) Change in unrealised gains/(losses) included in the consolidated income statement for assets and liabilities held at the end of the reporting period, under investment return 1 — 11 (1) — US$m Debt securities Equity securities Interests in investment funds Derivative financial assets/ (liabilities) Investment contract liabilities without DPF As at 1 January 2025 765 117 3,460 61 (32) Net movement on investment contract liabilities — — — — 15 Total gains/(losses) Reported under investment return in the consolidated income statement (53) 10 (28) (3) — Reported under fair value reserve and foreign currency translation reserve in the consolidated statement of comprehensive income 21 1 15 — — Purchases 44 35 520 — — Sales (615) — (198) — — Transfer out of level 3 — (2) — — — As at 31 December 2025 162 161 3,769 58 (17) Change in unrealised gains/(losses) included in the consolidated income statement for assets and liabilities held at the end of the reporting year, under investment return 8 10 (27) (3) — Movements in investment contract liabilities at fair value are offset by movements in the underlying portfolio of matching assets. Details of the movements in investment contract liabilities are provided in Note 21. Assets transferred out of Level 3 mainly relate to debt securities, equity securities and interests in investment funds of which market-observable inputs became available during the period/year and were used in determining the fair value. Interim condensed consolidated financial statements 102
Page 104
18 FAIR VALUE MEASUREMENT (continued) 18.1 Fair value measurements on a recurring basis (continued) Level 3 interests in investment funds Interests in investment funds classified as level 3 mainly include private equity and private credit funds. The Group determines the fair values of these investment funds based on the reported NAV in their audited financial statements, with adjustments made where appropriate after considering various factors, including accounting policies adopted by the fund, restrictions and barriers that may prevent the Group from disposing of its interests in such funds, and the Group's ownership percentage in the funds. For funds for which audited financial statements as at the reporting date are not available, the Group performs a roll forward analysis on the latest NAV based on fund managers' statements available and capital movements up to the reporting date. This valuation methodology is in accordance with guidelines of the International Valuation Standards Council. The Group considers that the change in the inputs to the valuation technique would not have a significant impact on the interim condensed consolidated financial statements and accordingly, no quantitative analysis has been presented. Level 3 investment contract liabilities without DPF Investment contract liabilities categorised in Level 3 of the fair value hierarchy are measured with reference to the value of the underlying items which are mainly unlisted investment funds. 18.2 Fair value measurements for disclosure purpose Fair values of financial assets and liabilities for disclosure purpose are determined using the same Fair Value Hierarchy. Loans and deposits For loans and deposits that are repriced frequently and have not had any significant changes in credit risk, carrying amounts represent a reasonable estimate of fair values. The fair values of other loans and deposits are estimated by discounting expected future cash flows using interest rate offered for similar instruments to holders with similar credit ratings. Other assets The carrying amount of other financial assets is not materially different to their fair value. Cash and cash equivalents The carrying amount of cash approximates its fair value. Borrowings The fair values of borrowings with stated maturities have been estimated based on discounting future cash flows using the interest rates currently applicable to deposits of similar maturities or prices obtained from brokers. Other liabilities The fair values of other unquoted financial liabilities is estimated by discounting expected future cash flows using current market rates applicable to their yield, credit quality and maturity, except for those without stated maturity, where the carrying value approximates to fair value. Interim condensed consolidated financial statements 103
Page 105
18 FAIR VALUE MEASUREMENT (continued) 18.2 Fair value measurements for disclosure purpose (continued) A summary of assets and liabilities not carried at fair value but for which the fair value is disclosed according to fair value hierarchy is given below. Fair value hierarchy US$m Level 1 Level 2 Level 3 Total 30 June 2026 (Unaudited) Assets for which the fair value is disclosed Financial assets Accreting notes — 408 — 408 Total assets for which the fair value is disclosed — 408 — 408 Liabilities for which the fair value is disclosed Financial liabilities Medium term notes / subordinated dated capital securities 2,170 — — 2,170 Total liabilities for which the fair value is disclosed 2,170 — — 2,170 Fair value hierarchy US$m Level 1 Level 2 Level 3 Total 31 December 2025 Assets for which the fair value is disclosed Financial assets Accreting notes — 431 — 431 Total assets for which the fair value is disclosed — 431 — 431 Liabilities for which the fair value is disclosed Financial liabilities Medium term notes / subordinated dated capital securities 2,201 — — 2,201 Total liabilities for which the fair value is disclosed 2,201 — — 2,201 Interim condensed consolidated financial statements 104
Page 106
18 FAIR VALUE MEASUREMENT (continued) 18.2 Fair value measurements for disclosure purpose (continued) The following table sets out the composition and the fair value of underlying items for the Group’s insurance contracts with direct participation features. US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Financial assets Loans and deposits 187 170 FVOCI Debt securities 17,422 15,097 Government bonds 2,811 2,598 Government agency bonds 634 625 Corporate bonds 10,752 8,867 Structured securities 3,225 3,007 FVTPL Debt securities 2,883 1,986 Government bonds 7 — Corporate bonds 2,313 1,091 Structured securities 563 895 Equity shares 171 165 Interests in investment funds 9,652 9,074 Derivative financial instruments 68 34 Cash and cash equivalents 221 393 30,604 26,919 Financial liabilities Derivative financial instruments 129 139 129 139 18.3 Fair value measurements on a non-recurring basis The Group does not have assets or liabilities measured at fair value on a non-recurring basis as at 30 June 2026 (31 December 2025: nil). Interim condensed consolidated financial statements 105
Page 107
19 OTHER ASSETS US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Accounts receivable (i) 265 216 Accrued investment income 356 332 Deposits 23 23 Prepayments 111 84 Total 755 655 Note: (i) Accounts receivable as at 30 June 2026 includes cash collateral of US$116m (31 December 2025: US$95m) posted for derivative liabilities. All amounts other than certain prepayments are generally expected to be recovered within 12 months after the end of the reporting period/year. Accordingly, no ageing analysis has been provided. 20 CASH AND CASH EQUIVALENTS US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Cash 1,263 1,345 Cash equivalents 356 142 Total 1,619 1,487 Cash comprises cash at bank and cash in hand. Cash equivalents comprise bank deposits and other short-term highly liquid investments with maturities at acquisition of three months or less, which are held for cash management purposes. Cash and cash equivalents also include cash received as collateral for derivative transactions, and repo and reverse repo transactions. The Group’s cash and cash equivalents are held in the following currencies: As at 30 June 2026 As at 31 December 2025 (Unaudited) US$ 39 % 46 % JPY 12 % 15 % THB 11 % 9 % HKD 11 % 7 % MYR 10 % 8 % Other currencies 17 % 15 % 21 INVESTMENT CONTRACT LIABILITIES US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) At beginning of period/year 17 32 Benefits paid (4) (18) Investment return from underlying assets — 3 At end of period/year 13 17 Interim condensed consolidated financial statements 106
Page 108
22 BORROWINGS US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Bank borrowings 992 991 Medium term notes 319 319 Subordinated dated capital securities 1,738 1,736 Total 3,049 3,046 Interest expense on borrowings is shown in Note 8. Further information relating to interest rates and the maturity profile of borrowings is presented in Note 26. Outstanding bank borrowings, notes and capital securities placed to the market as at 30 June 2026: Issue date Nominal amount Interest rate Tenor at issue Bank borrowings 21 January 2025 (i) US$500m SOFR + 0.970% 3 years 21 January 2025 (i) US$500m SOFR + 1.120% 5 years Medium term notes 6 December 2023 US$325m 7.784 % 10 years Subordinated dated capital securities 2 July 2024 US$600m 7.635 % 7 years 22 September 2025 US$575m 5.252 % 5 years 22 September 2025 US$575m 5.836 % 10 years Note: (i) The bank borrowings of the Group are subject to standard covenants that are customary for commercial bank loans. The lenders may accelerate the repayment dates of these borrowings if the Group does not comply with such covenants, subject to any applicable grace periods. The Group is not aware of any non-compliance with these covenants that could result in the repayment dates of such borrowings being accelerated. These medium-term notes and subordinated dated capital securities are listed on The Stock Exchange of Hong Kong Limited. The net proceeds from the issuance of the medium-term notes and subordinated dated capital securities are/were used for acquisitions, general corporate purposes and funding requirements of the Group. Interim condensed consolidated financial statements 107
Page 109
22 BORROWINGS (continued) The Group had access to the following undrawn borrowing facilities at the end of the reporting period/year: US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Facility agreement date Undrawn committed revolving credit facilities (i) 17 December 2023 (ii) 885 885 22 November 2024 (iii) 500 500 1,385 1,385 Notes: (i) The borrowing facilities are unsecured and used for general corporate purposes. (ii) Consisting of a US$885m committed revolving credit facility maturing in 2027. The Group had drawn down US$50m of the committed revolving credit facility on 26 May 2026 with interest rate of SOFR + 1.06 per cent, which was subsequently repaid on 2 June 2026. (iii) Consisting of US$250m and US$250m committed revolving credit facilities maturing in 2028 and 2030, respectively. The Group had drawn down US$25m and US$25m of the committed revolving credit facilities on 26 May 2026 with interest rate of SOFR + 0.97 per cent and SOFR + 1.12 per cent respectively, which were subsequently repaid on 2 June 2026. 23 OTHER LIABILITIES US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Trade and other payables (i) 774 933 Distribution agreement payable — 25 Lease liabilities (ii) 186 114 Obligations under repurchase and forward arrangements (iii) 244 210 Total 1,204 1,282 Notes: (i) Other payables of the Group as at 30 June 2026 includes US$43m (31 December 2025: US$211m) relating to the cash collateral held for derivative assets. (ii) The total cash outflow for leases for the six months ended 30 June 2026 was US$22m (six months ended 30 June 2025: US$25m). (iii) The Group has entered into repurchase and forward agreements whereby certain debt securities are sold to third parties with a concurrent agreement to repurchase the securities at a specified date. Refer to Note 16.1 for details. All trade and other payables are generally expected to be settled within 12 months after the end of the reporting period/year. Accordingly, no ageing analysis has been provided. Interim condensed consolidated financial statements 108
Page 110
24 SHARE CAPITAL, SHARE PREMIUM AND RESERVES 24.1 Share capital and share premium and employee share-based trust Ordinary Shares Number of shares Share capital nominal value US$m Share premium US$m Total share capital and share premium US$m Number of shares held by employee share-based trust Employee share-based trust US$m Authorised: Ordinary shares of US$0.01 each as at 1 January 2025 2,118,816,290 21 Conversion of Shares 381,183,710 4 Amendment and increase of authorised ordinary shares of US$0.01 each 2,600,000,000 26 Share Consolidation (3,400,000,000) — Ordinary shares of US$0.03 each as at 31 December 2025 and 30 June 2026 1,700,000,000 51 Issued and fully paid: Ordinary shares of US$0.01 each as at 1 January 2025 939,953,815 9 6,402 6,411 — — Conversion of Shares 2,594,663,913 26 2,573 2,599 — — Share Consolidation (2,356,411,821) — — — — — Shares issued under the Group's Equity Incentive Plans 1,455,870 — 7 7 — — Shares issued pursuant to the IPO 91,342,100 3 439 442 — — Shares issued pursuant to the partial exercise of Over- allotment Option 5,001,400 — 24 24 — — Transaction costs — — (6) (6) — — Ordinary shares of US$0.03 each as at 31 December 2025 1,276,005,277 38 9,439 9,477 — — Shares issued to the employee share trust (i) 3,616,799 — — — (3,616,799) — Vesting of shares under the Group's Equity Incentive Plans (ii) — — 18 18 3,609,986 — Ordinary shares of US$0.03 each as at 30 June 2026 1,279,622,076 38 9,457 9,495 (6,813) — Notes: (i) These ordinary shares are issued by the Company and held by the Trust for the purpose of distribution to employees in the future under the Group's Equity Incentive Plans, please refer to the below and Note 27 for further information. (ii) These share-based awards were granted prior to the IPO, please refer to Note 27 and the Company’s prospectus dated 26 June 2025 for further information. Interim condensed consolidated financial statements 109
Page 111
24 SHARE CAPITAL, SHARE PREMIUM AND RESERVES (continued) 24.1 Share capital and share premium and employee share-based trust (continued) Management Shares Number of shares Share capital nominal value US$m Share premium US$m Total share capital and share premium US$m Authorised: Management Shares of US$0.01 each as at 1 January 2025 65,000,000 1 Conversion of Shares (65,000,000) (1) Management Shares of US$0.01 each as at 31 December 2025 and 30 June 2026 — — Issued and fully paid: Management Shares of US$0.01 each as at 1 January 2025 34,756,740 — 160 160 Conversion of Shares (34,756,740) — (160) (160) Management Shares of US$0.01 each as at 31 December 2025 and 30 June 2026 — — — — Series P Conversion Shares Number of shares Share capital nominal value US$m Share premium US$m Total share capital and share premium US$m Authorised: Series P Conversion Shares of US$0.01 each as at 1 January 2025 120,099,900 1 Conversion of Shares (120,099,900) (1) Series P Conversion Shares of US$0.01 each as at 31 December 2025 and 30 June 2026 — — Issued and fully paid: Series P Conversion Shares of US$0.01 each as at 1 January 2025 120,099,900 1 376 377 Conversion of Shares (120,099,900) (1) (376) (377) Series P Conversion Shares of US$0.01 each as at 31 December 2025 and 30 June 2026 — — — — Interim condensed consolidated financial statements 110
Page 112
24 SHARE CAPITAL, SHARE PREMIUM AND RESERVES (continued) 24.1 Share capital and share premium and employee share-based trust (continued) Series A, B-2 and B-3 Conversion Shares Number of shares Share capital nominal value US$m Share premium US$m Total share capital and share premium US$m Authorised: Series A, B-2 and B-3 Conversion Shares of US$0.01 each as at 1 January 2025 196,083,810 2 Conversion of Shares (196,083,810) (2) Series A, B-2 and B-3 Conversion Shares of US$0.01 each as at 31 December 2025 and 30 June 2026 — — Issued and fully paid: Series A, B-2 and B-3 Conversion Shares of US$0.01 each as at 1 January 2025 196,083,810 2 2,060 2,062 Conversion of Shares (196,083,810) (2) (2,060) (2,062) Series A, B-2 and B-3 Conversion Shares of US$0.01 each as at 31 December 2025 and 30 June 2026 — — — — Initial Public Offering The Company completed its initial public offering on the main board of The Stock Exchange of Hong Kong Limited under the stock code “1828” on 7 July 2025 (the “IPO”). Immediately prior to the completion of the IPO, the Company underwent the below: 1. all Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares were mandatorily converted into 2,594,663,913 ordinary shares (which became 864,887,971 ordinary shares after the Share Consolidation as described below) of the Company through the consolidation, redesignation and reclassification of the Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares by operation of the laws of the Cayman Islands (the “Conversion of Shares”). After the Conversion of Shares, the Company only has ordinary shares in issue; 2. the authorised ordinary shares of the Company was increased from US$25m to US$51m; and 3. the issued and unissued ordinary shares of the Company with a nominal or par value of US$0.01 each were consolidated at a ratio of 1-for-3, such that the authorised ordinary share capital of the Company was consolidated from US$51m divided into 5,100,000,000 shares of a nominal or par value of US0.01 each, to US$51m divided into 1,700,000,000 shares of a nominal or par value of US$0.03 each (the “Share Consolidation”). Pursuant to the IPO, 91,342,100 ordinary shares with a par value of US$0.03 each were issued at an offer price of HK$38.00 per share (the “Listing Price”) with gross proceeds of US$442m. The Over-allotment Option, as defined in the Company’s prospectus dated 26 June 2025, was partially exercised on 1 August 2025, pursuant to which there were 5,001,400 ordinary shares with a par value of US$0.03 each issued at the Listing Price with gross proceeds of US$24m on 6 August 2025. Interim condensed consolidated financial statements 111
Page 113
24 SHARE CAPITAL, SHARE PREMIUM AND RESERVES (continued) 24.1 Share capital and share premium and employee share-based trust (continued) Employee share-based trust A trust (the “Trust”) is established by the Company to facilitate distribution of shares to employees under the Group’s Equity Incentive Plans. The Group has control over the Trust as it has rights to variable returns from its involvement with the Trust and has the ability to affect those returns through its power over the Trust. The Trust is consolidated in the Group’s interim condensed consolidated financial statements. Where shares are issued by the Company at no consideration and held by the Trust for the purpose of distribution to employees in the future, no movement to the equity attributable to the shareholders of the Company is recognised. On vesting date, the share-based compensation reserve is transferred to share capital and share premium. For the Group’s own shares held by the Trust, to the extent not transferred to the employees upon vesting, they are recognised as employee share-based trust and carried at cost. During the six months ended 30 June 2026, the Company issued 3,616,799 shares (six months ended 30 June 2025:nil) to the Trust, and the Trust transferred 3,609,986 shares (six months ended 30 June 2025:nil) to eligible employees and participants of the Group under the Share Option and RSU Plan as a result of vesting. As at 30 June 2026, 6,813 shares (30 June 2025:nil) of the Company were held by the Trust. Management Shares, Series P Conversion Shares, and Series A, B-2 and B-3 Conversion Shares Management Shares, Series P Conversion Shares, and Series A, B-2 and B-3 Conversion Shares issued by the Company did not have fixed maturity, participated in discretionary dividends and were non-redeemable. These shares ranked pari passu with all other shares on any payment of dividend or distribution or return of capital, with the exception that on any payment of a dividend or distribution or return of capital (other than on a liquidation event), holders of Series A, B-2 and B-3 Conversion Shares had the benefit of an increased entitlement to such dividend or distribution. The holders of Management Shares and Series P Conversion Shares were entitled to the same voting rights as each ordinary share in the Company, while holders of Series A, B-2 and B-3 Conversion Shares were not entitled to attend or vote at general meetings of the Company. These shares were mandatorily converted into ordinary shares of the Company upon completion of the IPO. Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares did not contain any contractual obligations to deliver cash, other financial assets or a variable number of the Group’s own equity instruments which could not be unconditionally avoided by the Group. Accordingly, they were classified as equity in the Group’s interim condensed consolidated financial statements. 24.2 Reserves (a) Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of financial investments measured at FVOCI held at the end of the reporting period. (b) Insurance finance reserve The insurance finance reserve comprises the cumulative insurance finance income and expenses recognised in other comprehensive income. Interim condensed consolidated financial statements 112
Page 114
24 SHARE CAPITAL, SHARE PREMIUM AND RESERVES (continued) 24.2 Reserves (continued) (c) Foreign currency translation reserve The foreign currency translation reserve comprises all foreign currency exchange differences arising from the translation of the financial statements of foreign operations. (d) Cash flow hedge reserve The cash flow hedge reserve represents the cumulative gain or loss on the hedging instruments from the inception of the cash flow hedge and comprises: • The effective portion of gains or losses on derivatives that are designated and qualified as cash flow hedges. Amounts are subsequently reclassified to profit or loss; and • Costs of hedging reserve which represents the deferred forward element of forward contracts determined at the inception of the hedge, and subsequently amortised to profit or loss over the life of the hedge. The Group’s hedging reserves relate to the following hedging instruments: US$m Cost of hedging reserve Effective portion of foreign exchange derivatives Effective portion of interest rate derivatives Total cash flow hedge reserves As at 1 January 2026 (4) 17 63 76 Add: Change in fair value of hedging instruments recognised in OCI — (112) (50) (162) Add: Costs of hedging deferred and recognised in OCI (18) — — (18) Less: Reclassified from OCI to profit or loss – included in investment return — 115 (2) 113 Less: Amortisation of cost of hedging recognised in profit or loss – included in investment return 18 — — 18 Less: Deferred tax — — 10 10 As at 30 June 2026 (Unaudited) (4) 20 21 37 US$m Cost of hedging reserve Effective portion of foreign exchange derivatives Effective portion of interest rate derivatives Total cash flow hedge reserves As at 1 January 2025 (8) 8 6 6 Add: Change in fair value of hedging instruments recognised in OCI — 112 75 187 Add: Costs of hedging deferred and recognised in OCI (43) — — (43) Less: Reclassified from OCI to profit or loss – included in investment return — (101) (4) (105) Less: Amortisation of cost of hedging recognised in profit or loss – included in investment return 48 — — 48 Less: Deferred tax (1) (2) (14) (17) As at 31 December 2025 (4) 17 63 76 (e) Other reserves Other reserves mainly include capital redemption reserve and share-based compensation reserve. Interim condensed consolidated financial statements 113
Page 115
24 SHARE CAPITAL, SHARE PREMIUM AND RESERVES (continued) 24.3 Perpetual securities Issue date Nominal amount Distribution rate Tenor 1 February 2018 US$200m 6.675 % Perpetual Carrying amount of the perpetual securities: US$m As at 30 June 2026 As at 31 December 2025 (Unaudited) Issue date 1 February 2018 203 203 The issuer of the perpetual securities may, at its sole option, defer the distributions by giving notice to the holders. In the event of any distribution deferral, the issuers cannot declare or pay any dividend on its ordinary or preference share capital, except if payments are declared, paid or made in respect of an employee benefit plan or similar arrangement with or for the benefit of employees, officers, directors or consultants. The perpetual securities have been treated as equity in the Group's consolidated statement of financial position. The proceeds from the issuance were used for general corporate purposes, potential transactions and/or repayment of the Group's own indebtedness. During the six months ended 30 June 2026, the Group paid distributions of US$7m (year ended 31 December 2025: US$64m). 25 GROUP CAPITAL STRUCTURE Capital management approach The Group’s capital management objectives focus on maintaining a strong capital base to support the development of the business, maximising shareholders' value and satisfying regulatory capital requirements at all times. The Group's capital management activities consider all capital-related activities of the Group and assists senior management in making capital decisions. The capital management activities include asset-liability management, strategic asset allocation and ongoing solvency management. This includes ensuring capital considerations are paramount in the strategy and business planning processes. Group-wide supervision framework The group supervisor of the Group is the Hong Kong Insurance Authority (“IA”). The Group is in compliance with the group capital adequacy requirements as applied to it. In 2021, the IA implemented Group-wide supervision (“GWS”) framework, under which the IA has direct regulatory powers over Hong Kong incorporated holding companies of insurance groups that are designated. The Group has been subject to the GWS framework since 14 May 2021 and FWD Group Holdings Limited (the “Company”) was identified as the reference company under GWS. Under the GWS framework, the group capital adequacy requirements are determined in accordance with the Insurance (Group Capital) Rules (“Group Capital Rules”), subject to any capital variation the IA considers necessary. Interim condensed consolidated financial statements 114
Page 116
25 GROUP CAPITAL STRUCTURE (continued) Local regulatory solvency The Group's individual subsidiaries are also subject to the supervision of government regulators in the jurisdictions in which the subsidiaries and their parent entity operate and, in relation to subsidiaries, in which they are incorporated. The various regulators monitor our local solvency positions. The Group has been in compliance with the solvency and capital adequacy requirements applied by its regulators at all times. The primary insurance regulators for the Group's key operating companies are: Subsidiary Primary insurance regulator Solvency regulation FWD Life Insurance Company (Bermuda) Limited IA Hong Kong Insurance Ordinance (“HKIO”) FWD Life Insurance Public Company Limited Thailand Office of Insurance Commission (“THOIC”) Life Insurance Act of Thailand FWD Life Insurance Company, Limited Financial Services Agency (“FSA”) Insurance Business Act The IA (among other matters) sets minimum solvency margin requirements that an insurer must meet in order to be authorised to carry on insurance business in or from Hong Kong. The Hong Kong Risk based capital regime (“HKRBC”) became effective on 1 July 2024. Previously, on 30 June 2022, the IA had approved the early adoption of HKRBC for FWD Life Insurance Company (Bermuda) Limited. Under HKRBC, FWD Life Insurance Company (Bermuda) Limited is required to maintain an amount of capital not less than the prescribed capital amount (as defined in the Insurance (Amendment) Ordinance 2023) at all times. The Life Insurance Act of Thailand (among other matters) sets minimum solvency margin requirements that an insurer must meet in order to be authorised to carry on insurance business in or from Thailand. The Life Insurance Act of Thailand requires FWD Life Insurance Public Company Limited to maintain a prescribed capital requirement ratio of 140 per cent and a minimum capital requirement ratio of 100 per cent. Regulations for Enforcement Ordinance of the Insurance Business Act and Comprehensive Guidelines for Supervision of Insurance Companies sets minimum solvency margin requirements that an insurer must meet in order to be authorised to carry on insurance business in or from Japan. The Economic value-based Solvency Regulation (“ESR”) became effective on 31 March 2026 in Japan. Under ESR, the Comprehensive Guidelines for Supervision of Insurance Companies Section II-2-2-2 requires FWD Life Insurance Company, Limited to maintain a prescribed capital requirement ratio of 100 per cent and minimum capital requirement ratio of 35 per cent. Subsidiary dividend restrictions The Company’s ability to distribute dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. These distributions may be subject to restrictions, specifically related to the need by local insurance regulators for certain subsidiaries to maintain specific capital or solvency levels, and the need to meet other specific local regulations such as those relating to legal capital levels or foreign exchange restrictions. The payment of any dividend may require formal approval from the relevant insurance regulator in the particular jurisdiction that the subsidiary is domiciled or operates in. Interim condensed consolidated financial statements 115
Page 117
26 RISK MANAGEMENT Risk management framework The Group’s Risk Management framework has been established for the identification, evaluation and management of the key risks faced by the organisation within its stated risk appetite. The framework includes an established risk governance structure with clear oversight and assignment of responsibility for monitoring and management of financial and non-financial risks. The Group issues contracts that expose it to insurance risks, financial risks or both. The financial risks associated with the Group's operations and the Group’s management of these risks are summarised below: Financial risks The Group is exposed to a range of financial risks. The Group applies a consistent risk management philosophy that is embedded in management processes and controls such that both existing and emerging risks are considered and addressed. The following section summarises the Group's key risk exposures and the primary policies and processes used by the Group to manage its exposures to these risks. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Although the primary source of credit risk is the Group's investment portfolio, credit risk also arises in reinsurance arrangements, derivative transactions, settlement and treasury activities. The level of credit risk the Group accepts is managed and monitored by the Group Asset and Liability Management Committee and the Business Units, through establishment of an exposure limit for each counterparty or group of counterparties, reporting of credit risk exposures, monitoring compliance with exposure limits, and a regular review of limits due to changes in the financial strength and risk appetite of the Group and/or macro-economic environment. The Group actively manages its investments to ensure that there is no significant concentration of credit risk to a single counterparty or a single group of related counterparties. On an aggregate basis, the overall credit quality of the investment portfolio has to meet the target quality. External ratings have been used in accordance with the Group’s credit rating mapping guidelines, please refer to Note 16.1 for details. The Group primarily identifies whether a significant increase in credit risk has occurred for an exposure by comparing the ratings as at the reporting date with the ratings as at the date of initial recognition of the exposure. The Group monitors changes in credit risk by tracking the change in rating of the exposure. The Group also monitors relevant information, including price movements of securities, and assesses whether such information signifies a change in credit risk. Interim condensed consolidated financial statements 116
Page 118
26 RISK MANAGEMENT (continued) Credit risk (continued) Expected Credit Loss (“ECL”) Methodology The measurement of ECL is the product of a financial instrument’s probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”) discounted at the effective interest rate to the reporting date. ECL is measured at an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes, the time value of money and reasonable and supportable information about past events, current conditions and forecasts of future economic conditions. The Group adopts three economic scenarios in the ECL measurement to meet the requirements of IFRS 9. The “Baseline” scenario represents the most likely outcome and the other two scenarios, referred to as “Upside” scenario and “Downside” scenario, represent less likely outcomes which are more optimistic or more pessimistic compared to Baseline scenario. The Baseline scenario is prepared using historical data, economic trends, external forecasts from governmental and non-governmental organisations, etc. as benchmarks to ensure the scenario is reasonable and supportable. For the Upside and Downside scenarios, the Group makes reference to the historical and forecast macroeconomic data. The probability assigned to each scenario reflects the Group’s view of the economic environment, which implements the Group’s prudent and consistent credit strategy of ensuring the adequacy of impairment allowance. A higher probability is assigned to the Baseline scenario to reflect the most likely outcome and a lower probability is assigned to the Upside and Downside scenarios to reflect the less likely outcomes. The following tables set out the credit quality analysis for debt securities measured at FVOCI and at amortised cost. Unless specifically indicated, the amounts in the table represent gross carrying amounts. US$m Stage 1 Stage 2 Stage 3 Stage 3 - Purchased or originated credit-impaired financial assets Total 30 June 2026 (Unaudited) Debt securities under FVOCI AAA 1,788 — — — 1,788 AA 6,802 — — — 6,802 A 12,180 — — — 12,180 BBB 19,218 — — — 19,218 Below investment grade or not rated 834 45 — — 879 Sub-total 40,822 45 — — 40,867 Loss allowance (42) (6) — — (48) Amortised cost 40,780 39 — — 40,819 Carrying amount – fair value 37,744 37 — — 37,781 Interim condensed consolidated financial statements 117
Page 119
26 RISK MANAGEMENT (continued) Credit risk (continued) Expected Credit Loss (“ECL”) Methodology (continued) US$m Stage 1 Stage 2 Stage 3 Stage 3 - Purchased or originated credit-impaired financial assets Total 31 December 2025 Debt securities under FVOCI AAA 1,927 — — — 1,927 AA 6,581 — — — 6,581 A 11,125 — — — 11,125 BBB 18,855 — — — 18,855 Below investment grade or not rated 898 36 — — 934 Sub-total 39,386 36 — — 39,422 Loss allowance (40) (5) — — (45) Amortised cost 39,346 31 — — 39,377 Carrying amount – fair value 37,476 29 — — 37,505 US$m Stage 1 Stage 2 Stage 3 Stage 3 - Purchased or originated credit-impaired financial assets Total 30 June 2026 (Unaudited) Loans and deposits under amortised cost AA 32 — — — 32 A 66 — — — 66 BBB 385 — — — 385 Below investment grade or not rated 461 — 2 — 463 Sub-total 944 — 2 — 946 Loss allowance (4) — (2) — (6) Carrying amount 940 — — — 940 US$m Stage 1 Stage 2 Stage 3 Stage 3 - Purchased or originated credit-impaired financial assets Total 31 December 2025 Loans and deposits under amortised cost AA 26 — — — 26 A 55 — — — 55 BBB 398 — — — 398 Below investment grade or not rated 463 — 2 — 465 Sub-total 942 — 2 — 944 Loss allowance (4) — (2) — (6) Carrying amount 938 — — — 938 Interim condensed consolidated financial statements 118
Page 120
26 RISK MANAGEMENT (continued) Interest rate risk The Group’s exposure to interest rate risk predominantly arises from any difference between the duration of the Group’s liabilities and assets. This exposure is heightened in products with inherent interest rate options or guarantees. The Group seeks to manage interest rate risk by ensuring appropriate product design and underlying assumptions as part of the product approval process and by matching, to the extent possible and appropriate, the duration of investment assets with the duration of insurance contract liabilities. Given the long duration of policy liabilities and the uncertainty of future cash flows arising from these contracts, it is challenging to acquire assets that will perfectly match the policy liabilities. This results in interest rate risk, which is managed and monitored by the Group Asset and Liability Management Committee and the Business Units. The duration of interest-bearing financial assets is regularly reviewed and monitored by referencing the estimated duration of insurance contract liabilities. The tables below summarise the financial assets and financial liabilities by variable/fixed interest rate and non- interest bearing instruments. US$m Variable interest rate Fixed interest rate Non-interest bearing Total 30 June 2026 (Unaudited) Financial assets Debt securities 6,498 34,640 — 41,138 Cash and cash equivalents 1,619 — — 1,619 Loans and deposits 7 933 — 940 Equity securities — — 219 219 Interests in investment funds — — 11,408 11,408 Derivative financial instruments — — 313 313 Accrued investment income — — 356 356 Other assets — — 288 288 Total financial assets 8,124 35,573 12,584 56,281 Insurance and reinsurance contract assets Insurance contract assets 738 Reinsurance contract assets 2,591 Total insurance and reinsurance contract assets 3,329 Financial liabilities Borrowings 992 2,057 — 3,049 Other liabilities — 543 661 1,204 Derivative financial instruments — — 522 522 Total financial liabilities 992 2,600 1,183 4,775 Insurance and reinsurance contract liabilities Insurance contract liabilities 52,272 Reinsurance contract liabilities 572 Total insurance and reinsurance contract liabilities 52,844 Interim condensed consolidated financial statements 119
Page 121
26 RISK MANAGEMENT (continued) Interest rate risk (continued) US$m Variable interest rate Fixed interest rate Non-interest bearing Total 31 December 2025 Financial assets Debt securities 6,232 33,588 — 39,820 Cash and cash equivalents 1,487 — — 1,487 Loans and deposits 8 930 — 938 Equity securities — — 270 270 Interests in investment funds — — 10,761 10,761 Derivative financial instruments — — 407 407 Accrued investment income — — 332 332 Other assets — — 239 239 Total financial assets 7,727 34,518 12,009 54,254 Insurance and reinsurance contract assets Insurance contract assets 715 Reinsurance contract assets 2,722 Total insurance and reinsurance contract assets 3,437 Financial liabilities Borrowings 991 2,055 — 3,046 Other liabilities — 452 830 1,282 Derivative financial instruments — — 490 490 Total financial liabilities 991 2,507 1,320 4,818 Insurance and reinsurance contract liabilities Insurance contract liabilities 49,653 Reinsurance contract liabilities 465 Total insurance and reinsurance contract liabilities 50,118 Interim condensed consolidated financial statements 120
Page 122
26 RISK MANAGEMENT (continued) Interest rate risk (continued) In order to manage interest rate risk, the Group also invests in bond forward contracts. The Group’s derivative contracts are established to provide an economic hedge to financial exposures. The Group adopts hedge accounting in certain circumstances. The Group applies cash flow hedge accounting for certain bond forward contracts that hedge the interest rate risk associated with highly probable forecast purchase of fixed-rate government bonds . The hedge ratio is designated at 1:1, with the critical terms of hedging instruments and hedged items aligned. The hedging relationships are expected to be highly effective, with hedge ineffectiveness arising from changes in the credit risk of the derivative counterparties. Hedging ineffectiveness in relation to the Group’s hedges of interest rate risk was insignificant during the six months ended 30 June 2026 and the year ended 31 December 2025. The Group held the following bond forward contracts to hedge exposures to changes in interest rates: Maturity Bond forward contracts Within 1 year 1-5 years Total 30 June 2026 (Unaudited) Carrying amount (in US$m) Derivative assets 12 14 26 Derivative liabilities — (22) (22) Notional amount (in US$m) 196 1,325 1,521 Average fixed interest rate 2.950 % 2.901 % 31 December 2025 Carrying amount (in US$m) Derivative assets 24 38 62 Derivative liabilities — — — Notional amount (in US$m) 222 768 990 Average fixed interest rate 2.897 % 2.703 % Interim condensed consolidated financial statements 121
Page 123
26 RISK MANAGEMENT (continued) Interest rate risk (continued) The table below illustrates the sensitivity of equity and CSM to changes in interest rates. The analysis illustrates the impact of changing interest rates in isolation before taking into account the effects of taxation, and does not quantify potential impacts arising from changes in other assumptions. US$m Impact on profit before tax Impact on other components of equity (before the effects of taxation) Impact on CSM 30 June 2026 (Unaudited) 50 basis points increase in interest rates Insurance contracts and reinsurance contracts held 150 1,527 62 Financial instruments (139) (1,780) — 11 (253) 62 50 basis points decrease in interest rates Insurance contracts and reinsurance contracts held (185) (1,666) (64) Financial instruments 158 1,955 — (27) 289 (64) 31 December 2025 50 basis points increase in interest rates Insurance contracts and reinsurance contracts held 115 1,483 64 Financial instruments (103) (1,783) — 12 (300) 64 50 basis points decrease in interest rates Insurance contracts and reinsurance contracts held (154) (1,623) (69) Financial instruments 110 1,964 — (44) 341 (69) Interim condensed consolidated financial statements 122
Page 124
26 RISK MANAGEMENT (continued) Equity price risk The Group's equity price risk exposure relates to financial assets and liabilities whose values fluctuate as a result of changes in market prices. The Group manages these risks by setting and monitoring investment limits by asset types and sectors. The Group’s principal price risk relates to movement in the fair value of equity securities and interests in investment funds. Equity price risk is managed through the selection process of equity funds and portfolio criteria for segregated equity mandates, which includes tracking errors based on benchmarks or specific concentration limits. Lower exposure limits are set for each private equity investment to manage concentration risk with the consideration of liquidity. The analysis below illustrates the estimated impact on equity and CSM arising from a change in a single variable before taking into account the effects of taxation. US$m Impact on profit before tax Impact on other components of equity (before the effects of taxation) Impact on CSM 30 June 2026 (Unaudited) 10% increase in equity prices Insurance contracts and reinsurance contracts held (847) 1 169 Financial instruments 957 — — 110 1 169 10% decrease in equity prices Insurance contracts and reinsurance contracts held 866 (1) (173) Financial instruments (977) — — (111) (1) (173) 31 December 2025 10% increase in equity prices Insurance contracts and reinsurance contracts held (704) 1 137 Financial instruments 828 — — 124 1 137 10% decrease in equity prices Insurance contracts and reinsurance contracts held 703 (1) (136) Financial instruments (828) — — (125) (1) (136) Interim condensed consolidated financial statements 123
Page 125
26 RISK MANAGEMENT (continued) Foreign exchange rate risk The Group’s financial assets are predominantly denominated in the same currencies as its insurance liabilities, which serves to mitigate the foreign exchange rate risk. Foreign currency translation risk arising from insurance and reinsurance contracts is managed by holding cash and investing in assets denominated in currencies that match the related liabilities, to the extent that it is deemed to be both practical and appropriate. Foreign currency translation risk arising from the underlying items of participating contracts is generally borne by contract holders except to the extent of the Group’s share of the performance of the underlying items. The Group’s foreign exchange derivatives are established to provide an economic hedge to financial exposures. The Group adopts hedge accounting in certain circumstances, as explained below. Hedge accounting The Group’s major foreign exchange hedging activity is to hedge United States dollar foreign currency risk exposure of cash flow variability arising from the debt securities held by certain Business Units through foreign exchange derivatives. The hedges were determined to be highly effective as the notional amounts and other critical terms of hedged items and hedging instruments are matched. For foreign exchange derivatives, the Group designates the spot elements to hedge its currency risk, with the forward elements excluded from the designation and separately accounted for as a cost of hedging. The table below summarises the instruments held by the Group to hedge exposures to changes in foreign exchange rate. Maturity Foreign exchange derivatives 1-6 months 6-12 months Over 1 year Total 30 June 2026 (Unaudited) Carrying amount (in US$m) Derivative assets — 1 31 32 Derivative liabilities (38) (34) (26) (98) Net exposure - notional amount (in US$m) 1,103 99 1,330 2,532 Weighted average contracted rate US$: JPY — 113.1 — US$: THB 31.8 35.5 32.4 JPY: US$ — — 0.0092 31 December 2025 Carrying amount (in US$m) Derivative assets 17 3 61 81 Derivative liabilities — — (32) (32) Net exposure - notional amount (in US$m) 1,032 80 944 2,056 Weighted average contracted rate US$: JPY — — 112.9 US$: THB 31.8 31.7 32.7 JPY: US$ — — 0.0092 Interim condensed consolidated financial statements 124
Page 126
26 RISK MANAGEMENT (continued) Foreign exchange rate risk (continued) Hedge accounting (continued) Hedge ineffectiveness Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. For hedges of foreign currency risk, the Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and timing of their respective cash flows, and enters into hedge relationships where the critical terms of the hedging instrument match with the terms of the hedged item. The Group therefore performs a qualitative assessment of effectiveness. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument, the Group uses the hypothetical derivative method to assess effectiveness. In hedges of foreign currency risk, ineffectiveness may arise if there are changes in the credit risk of the derivative counterparty. Hedging ineffectiveness in relation to the Group’s hedges of foreign currency risk was insignificant during the six months ended 30 June 2026 and the year ended 31 December 2025. Exposure to foreign exchange rate and sensitivity analysis on foreign exchange rate risk The Group's foreign currency exposures and the estimated impact of changes in foreign exchange rates are set out in the tables below after taking into account derivative contracts entered into to hedge foreign exchange rate risk. Currency exposure reflects the (a) net notional amount of foreign exchange derivative positions; and (b) net financial instruments and insurance and reinsurance contract balances, by currency. Other currencies for which net exposure is not significant are excluded from the analysis below. A reasonably possible strengthening or weakening of the following currencies against all other currencies at the reporting date would have affected the measurement of insurance contracts and reinsurance contracts held and financial instruments denominated in foreign currency and affected the profit before tax, total equity and CSM by the amounts shown below. This analysis assumes all other variables remain constant. Interim condensed consolidated financial statements 125
Page 127
26 RISK MANAGEMENT (continued) Foreign exchange rate risk (continued) Exposure to foreign exchange rate and sensitivity analysis on foreign exchange rate risk (continued) US$m United States Dollar Hong Kong Dollar Thai Baht Japanese Yen 30 June 2026 (Unaudited) Financial assets 31,087 782 15,195 2,033 Financial liabilities (3,756) (104) (109) (87) Insurance and reinsurance contract assets 988 18 24 2,341 Insurance and reinsurance contract liabilities (22,994) (4,032) (17,152) (4,615) Net notional amounts of foreign exchange derivatives (5,320) 2,569 2,907 916 5% strengthening of original currency Impact on profit before tax Financial instruments 109 167 7 1 Insurance contracts and reinsurance contracts held (64) (226) — — Impact on total equity Financial instruments — 161 906 141 Insurance contracts and reinsurance contracts held — (200) (856) (114) Impact on CSM Insurance contracts and reinsurance contracts held — 36 82 78 5% strengthening of US dollar Impact on profit before tax Financial instruments 109 (155) (7) (1) Insurance contracts and reinsurance contracts held (64) 213 — — Impact on total equity Financial instruments — (149) (906) (141) Insurance contracts and reinsurance contracts held — 188 856 114 Impact on CSM Insurance contracts and reinsurance contracts held — (30) (82) (78) Interim condensed consolidated financial statements 126
Page 128
26 RISK MANAGEMENT (continued) Foreign exchange rate risk (continued) Exposure to foreign exchange rate and sensitivity analysis on foreign exchange rate risk (continued) US$m United States Dollar Hong Kong Dollar Thai Baht Japanese Yen 31 December 2025 Financial assets 27,437 724 17,251 2,212 Financial liabilities (3,591) (144) (279) (86) Insurance and reinsurance contract assets 686 29 33 2,482 Insurance and reinsurance contract liabilities (19,346) (4,063) (18,179) (4,851) Net notional amounts of foreign exchange derivatives (5,072) 2,675 2,589 927 5% strengthening of original currency Impact on profit before tax Financial instruments 94 166 (1) 1 Insurance contracts and reinsurance contracts held (58) (226) — — Impact on total equity Financial instruments — 162 980 149 Insurance contracts and reinsurance contracts held — (201) (907) (118) Impact on CSM Insurance contracts and reinsurance contracts held — 37 78 78 5% strengthening of US dollar Impact on profit before tax Financial instruments 94 (152) 1 (1) Insurance contracts and reinsurance contracts held (58) 213 — — Impact on total equity Financial instruments — (148) (980) (149) Insurance contracts and reinsurance contracts held — 189 907 118 Impact on CSM Insurance contracts and reinsurance contracts held — (31) (78) (78) Interim condensed consolidated financial statements 127
Page 129
26 RISK MANAGEMENT (continued) Liquidity risk Liquidity risk primarily refers to the possibility of having insufficient cash available to meet payment obligations when they become due. The Group is exposed to liquidity risk in respect of insurance contracts that permit surrender, withdrawal or other forms of early termination for a cash surrender value specified in the contractual terms and conditions. To manage liquidity risk the Group has implemented a variety of measures, with an emphasis on flexible insurance product design, so that it can retain the greatest flexibility to adjust contract pricing or crediting rates. The Group also seeks to match, to the extent possible and appropriate, the duration of its investment assets with the duration of its insurance contracts. The Group performs regular monitoring of its liquidity position through cash flow projections. The table below summarises the Group’s financial instruments and insurance/reinsurance contract balances into their relevant maturity groupings based on the remaining period at the end of the reporting period/year to their contractual maturities or expected payment dates. Most of the Group’s assets are used to support its insurance contract liabilities. Refer to Note 15 for additional information on the Group’s insurance contract liabilities, as well as to the Insurance Risks section within this note. US$m Total Due in one year or less Due after one year through two years Due after two years through three years Due after three years through four years Due after four years through five years Due after five years No fixed maturity 30 June 2026 (Unaudited) Financial and insurance contract assets FVOCI debt securities 37,781 851 822 1,478 878 1,487 32,265 — FVTPL debt securities, equity securities and interests in investment funds 14,984 1,577 19 114 15 89 1,543 11,627 Loans and deposits 940 432 148 41 110 139 70 — Derivative financial instruments 313 66 52 38 77 5 75 — Insurance contract assets (Estimated PV of future cash flow) 2,387 (24) 183 172 177 142 1,737 — Reinsurance contract assets (Estimated PV of future cash flow) 2,928 265 159 156 161 138 2,049 — Other assets 644 623 8 2 1 2 8 — Cash and cash equivalents 1,619 1,619 — — — — — — Total 61,596 5,409 1,391 2,001 1,419 2,002 37,747 11,627 Financial and insurance contract liabilities Insurance contract liabilities (Estimated PV of future cash flow) (45,612) (4,297) (2,726) (2,503) (2,514) (2,475) (31,097) — Reinsurance contract liabilities (Estimated PV of future cash flow) (1,314) (88) (75) (74) (76) (66) (935) — Investment contract liabilities (13) — — — — — (13) — Borrowings (3,049) — (498) — (495) (572) (1,484) — Derivative financial instruments (522) (245) (99) (72) (32) (23) (51) — Other liabilities (1,018) (1,011) (1) (1) — — (5) — Lease liabilities (186) (42) (24) (20) (14) (11) (75) — Total (51,714) (5,683) (3,423) (2,670) (3,131) (3,147) (33,660) — Interim condensed consolidated financial statements 128
Page 130
26 RISK MANAGEMENT (continued) Liquidity risk (continued) US$m Total Due in one year or less Due after one year through two years Due after two years through three years Due after three years through four years Due after four years through five years Due after five years No fixed maturity 31 December 2025 Financial and insurance contract assets FVOCI debt securities 37,505 1,403 823 924 1,333 841 32,181 — FVTPL debt securities, equity securities and interests in investment funds 13,346 708 14 20 9 8 1,556 11,031 Loans and deposits 938 370 167 52 19 176 154 — Derivative financial instruments 407 166 46 60 38 18 79 — Insurance contract assets (Estimated PV of future cash flow) 2,325 49 166 152 151 142 1,665 — Reinsurance contract assets (Estimated PV of future cash flow) 3,114 413 161 155 157 151 2,077 — Other assets 571 548 8 4 1 2 8 — Cash and cash equivalents 1,487 1,487 — — — — — — Total 59,693 5,144 1,385 1,367 1,708 1,338 37,720 11,031 Financial and insurance contract liabilities Insurance contract liabilities (Estimated PV of future cash flow) (43,704) (4,110) (2,721) (2,409) (2,325) (2,374) (29,765) — Reinsurance contract liabilities (Estimated PV of future cash flow) (1,187) (155) (64) (61) (62) (59) (786) — Investment contract liabilities (17) — — — — — (17) — Borrowings (3,046) — — (497) — (1,066) (1,483) — Derivative financial instruments (490) (164) (151) (97) (37) (2) (39) — Other liabilities (1,168) (1,136) (1) (26) — — (5) — Lease liabilities (114) (45) (28) (12) (8) (4) (17) — Total (49,726) (5,610) (2,965) (3,102) (2,432) (3,505) (32,112) — The amounts payable on demand in the insurance contract liabilities represent the policyholders’ account values net of surrender charge of US$48,275m as at 30 June 2026 (31 December 2025: US$45,414m). Interim condensed consolidated financial statements 129
Page 131
27 SHARE-BASED COMPENSATION The Share Option and RSU Plan and the Share Award Plan During the six months ended 30 June 2026 and the year ended 31 December 2025, the Group operated both the Share Option and RSU Plan and the Share Award Plan to reward eligible persons for their services and the achievement of shareholder value targets. These share-based awards are contingent rights to receive ordinary shares or a conditional allocation of ordinary shares. These awards have vesting periods of up to four years and are at nil or nominal cost to the eligible person. Save for in certain circumstances, vesting of RSUs is conditional upon the eligible person being in active employment with the Group at the time of vesting. Vesting of PSUs is, in addition, subject to certain market and non-market performance conditions. PSUs are delivered to the eligible persons at the end of the vesting period conditional upon and depending on the actual achievement of the performance conditions. Award holders do not have any right to dividends or voting rights attaching to the shares prior to delivery of the shares. Details of RSUs and PSUs as at 30 June 2026 and 31 December 2025 under the Group’s Share Option and RSU Plan and the Share Award Plan are disclosed below. Number of RSUs and PSUs As at 1 January 2025 826,410 Forfeited (55,462) Vested (302,334) Immediately before the IPO 468,614 Upon the IPO RSUs and PSUs adjusted after Share Consolidation 27,115,200 Vested (1,455,870) Immediately after the IPO 25,659,330 After the IPO Awarded 9,451,615 Forfeited (1,116,573) As at 31 December 2025 33,994,372 Awarded 14,062,996 Forfeited (3,765,463) Vested (3,609,986) As at 30 June 2026 40,681,919 For the year ended 31 December 2025, upon the IPO , RSUs and PSUs adjusted after Share Consolidation consisted of (i) outstanding awards granted as Staple Share Units immediately prior to the IPO, which were converted into the Company’s RSUs and PSUs based on the Listing Price; (ii) outstanding awards granted based on a fixed monetary value prior to the IPO, which were converted into the Company’s RSUs and PSUs based on the Listing Price and (iii) 1,455,870 RSUs granted to directors and a former director, which became vested upon the IPO. Interim condensed consolidated financial statements 130
Page 132
27 SHARE-BASED COMPENSATION (continued) The Share Option and RSU Plan and the Share Award Plan (continued) Valuation methodology For RSUs, the Group determines the fair value of the awards by reference to the market value of the shares at the respective grant dates. For PSUs, the Group utilises a binomial option pricing model to calculate the fair value of the PSUs, taking into account the terms and conditions upon which the grants were made. Significant assumptions include expected volatility and risk- free interest rates. The expected volatility of the shares is estimated based on an analysis of market-implied volatility of comparators, incorporating certain management judgements. The risk-free interest rate is estimated based on the market implied yield of the government bonds issued by the Hong Kong Monetary Authority over two years. The simulation for achievement of market conditions depends on assumptions of expected volatility of the shares and other market comparators as well as the correlations. These assumptions are estimated based on an analysis of historical data over a period consistent with the expected life of the PSUs. Forfeitures prior to vesting are not allowed for in the valuation of the grants. The total fair value of RSUs and PSUs granted during the six months ended 30 June 2026 was US$33m (year ended 31 December 2025: US$86m). Recognised compensation cost The fair value of the employee service s received in exchange for the grant of RSUs and PSUs is recognised as an expense in profit or loss over the vesting period with a corresponding amount recorded in equity. The total expense recognised in the interim condensed consolidated financial statements related to RSUs and PSUs granted by the Group for the six months ended 30 June 2026 was US$34m (six months ended 30 June 2025: US$19m). The Employee Share Purchase Plan The Employee Share Purchase Plan (“ESPP”) was approved and adopted by the Board on 30 January 2022 and took effect on the Listing Date (i.e. 7 July 2025) (the “ESPP Adoption Date”) upon satisfaction of all relevant conditions. Refer to the section headed “Corporate governance — Employee Share Purchase Plan” for more details of ESPP. During the six months ended 30 June 2026 and year ended 31 December 2025, no awards were granted under the ESPP. 28 RELATED PARTY TRANSACTIONS (a) Compensation of Directors and key management personnel of the Group: Six months ended 30 June US$m 2026 2025 (Unaudited) (Unaudited) Short-term employee benefits 11 12 Share-based payments 11 8 Total 22 20 Interim condensed consolidated financial statements 131
Page 133
28 RELATED PARTY TRANSACTIONS (continued) (b) Transactions and balances with related parties: The Group has transactions with certain related companies and these interim condensed consolidated financial statements reflect the effect of these transactions which are conducted in accordance with terms mutually agreed between the parties. In addition to the transactions detailed elsewhere in the interim condensed consolidated financial statements, the Group had the following related party transactions during the reporting period. (i) Related companies charged US$7m for the provision of telecommunication, IT and investment advisory, advertising and consulting services to the Group for the six months ended 30 June 2026 (six months ended 30 June 2025: US$16m). (ii) The Group has underwritten various group insurance contracts with related companies. The total premium received from those contracts for the six months ended 30 June 2026 was US$13m (six months ended 30 June 2025: US$14m). (iii) For the six months ended 30 June 2025, t he Group has reinsurance contract arrangements with related companies, of which the total premiums ceded, claim recoveries received and commission income received during the period were US$26m, US$17m and US$1m, respectively. For the six months ended 30 June 2026, the Group has no reinsurance contract arrangements with related companies. (iv) The Group has accepted certain liabilities in connection with reinsurance contracts from a related company. The total premium revenue received, claims incurred and commissions paid from these contracts for the six months ended 30 June 2026 was US$15m (six months ended 30 June 2025: US$12m), US$9m (six months ended 30 June 2025: US$8m) and US$2m (six months ended 30 June 2025: US$1m), respectively. (v) The Group charged a related party US$1m for administration services during the six months ended 30 June 2026 (six months ended 30 June 2025: US$1m). (vi) The Group held a call option, pursuant to which the Group has the right to acquire a minority stake in a related party at a discounted price. As at 30 June 2026, the fair value of the call option was US$57m (31 December 2025: US$58m). (vii) The Group held financial investments of US$86m issued or controlled by related companies as at 30 June 2026 (31 December 2025: US$99m). (viii) The Group had amounts due from related companies of US$3m as at 30 June 2026 (31 December 2025: US$4m). The amounts due are unsecured, interest-free and repayable on demand. (ix) The Group had outstanding payables to related companies of US$1m as at 30 June 2026 (31 December 2025: US$3m). The payables due are unsecured, interest-free and repayable on demand. (x) The Group had loans to directors of US$nil as at 30 June 2026 (31 December 2025: US$581,000). The loans to directors are unsecured, interest-free and repayable based on the terms set out in the loan agreements. (c) Transactions and balances with associates: (i) The Group has entered into broker and non-exclusive distribution agreements with associates, pursuant to which the total commission expenses recognised by the Group for the six months ended 2026 was US$13m (six months ended 30 June 2025: US$6m). (ii) The Group had amount due from an associate of US$1m as at 30 June 2026 (31 December 2025: US$1m). The amount due is unsecured, interest-free and repayable on demand. The related party transactions above, except for (c)(i) and (c)(ii), constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Listing Rules. The related party transactions that are considered non-trade in nature are identified as (b)(vi) and (b)(x). Interim condensed consolidated financial statements 132
Page 134
29 COMMITMENTS AND CONTINGENCIES Operating lease commitments – Group as a lessor The Group leased its investment property portfolio under lease terms ranging between 1 and 30 years. As at the reporting date, the Group had total future minimum rental receivable under non-cancellable operating leases falling due as follows: As at As at US$m 30 June 2026 31 December 2025 (Unaudited) Within one year 16 15 In the second to fifth years 30 32 Over five years 36 40 Total 82 87 Investment and capital commitments The Group has investments and capital commitments to invest in its private equity partnerships and other financial investments. As at As at US$m 30 June 2026 31 December 2025 (Unaudited) Within one year 803 505 In the second to fifth years 1,175 935 Total 1,978 1,440 As at 30 June 2026, the Group had planned to invest a total of US$31m (31 December 2025: US$35m) in Malaysia. As at 30 June 2026, the Group agreed to make additional payments in aggregate amounts of up to US$34m (31 December 2025: US$34m) in relation to acquisitions. Contingencies The Group is subject to regulation in each of the geographical markets in which it operates from insurance business, and other regulators and is exposed to the risk of regulatory actions in response to perceived or actual non-compliance with regulations relating to suitability, sales or underwriting practices, claims payments and procedures, product design, disclosure, administration, denial or delay of benefits and breaches of fiduciary or other duties. The Group believes that these matters have been adequately provided for in these interim condensed consolidated financial statements. The Group is exposed to risk exposures including legal proceedings, complaints etc. from its activities including those arising from commercial activities, sales practices, suitability of products, policies and claims. The Group believes that these matters are adequately provided for in these interim condensed consolidated financial statements. 30 EVENTS AFTER REPORTING PERIOD On 7 July 2026, the Company priced 5.75-year subordinated dated capital securities with principal amount of SG$270m at coupon rate of 3.18%. The notes were issued on 14 July 2026. On 14 August 2026, the Group redeemed the US$200m 6.675% perpetual securities. The redemption price is composed of the outstanding principal amount together with distributions accrued to such date. Interim condensed consolidated financial statements 133
Page 135
31 INTERIM STATEMENT OF FINANCIAL POSITION OF THE COMPANY As at As at US$m Notes 30 June 2026 31 December 2025 (Unaudited) ASSETS Investment in subsidiaries 8,470 8,470 Financial investments At fair value through profit or loss Interests in investment funds 302 183 Derivative financial instruments — 1 302 184 Amounts due from subsidiaries 3,537 3,484 Other assets 5 11 Cash and cash equivalents 202 44 Total assets 12,516 12,193 LIABILITIES Borrowings 22 3,049 3,046 Derivative financial instruments — 2 Current tax liabilities 12 8 Amounts due to subsidiaries 499 84 Other liabilities 53 53 Total liabilities 3,613 3,193 EQUITY Share capital and share premium 24 9,495 9,477 Other reserves 24 98 82 Accumulated losses (1,059) (928) Total equity of the Company attributable to: Shareholders of the Company 8,534 8,631 Perpetual securities 24 369 369 Total equity 8,903 9,000 Total liabilities and equity 12,516 12,193 Approved and authorised for issue by the Board of Directors on 25 August 2026. Ma Si Hang, Frederick Huynh Thanh Phong Director Director Interim condensed consolidated financial statements 134
Page 136
32 INTERIM STATEMENT OF CHANGES IN EQUITY OF THE COMPANY Attributable to shareholders of the Company US$m Share capital and share premium Other reserves Accumulated losses Perpetual securities (i) Total equity Balance as at 1 January 2026 9,477 82 (928) 369 9,000 Net loss — — (131) 17 (114) Distribution paid (ii) — — — (17) (17) Share-based compensation — 34 — — 34 Vesting of shares under the Group's Equity Incentive Plans 18 (18) — — — Balance as at 30 June 2026 (Unaudited) 9,495 98 (1,059) 369 8,903 Attributable to shareholders of the Company US$m Share capital and share premium Other reserves Accumulated losses Perpetual securities (i) Total equity Balance as at 1 January 2025 9,010 22 (519) 907 9,420 Net profit — — (24) 47 23 Distribution paid (ii) — — — (47) (47) Shared-based compensation — 1 — — 1 Balance as at 30 June 2025 (Unaudited) 9,010 23 (543) 907 9,397 Notes: (i) As at 30 June 2026, there were perpetual securities issued by the Company to a subsidiary with nominal amount of US$239m (30 June 2025: US$239m) and carrying amount of US$166m (30 June 2025: US$166m). The coupon rate for these perpetual securities was 8.625 per cent for the six months ended 30 June 2026 (six months ended 30 June 2025: 8.625 per cent). These are intra- group transactions and balances that are eliminated when preparing the Group’s interim condensed consolidated financial statements. (ii) For the six months ended 30 June 2026, there were distributions of US$10m related to perpetual securities held by a subsidiary (six months ended 30 June 2025: US$10m). These are intra-group transactions that are eliminated when preparing the Group’s interim condensed consolidated financial statements. Interim condensed consolidated financial statements 135
Page 137
Independent report on the review of supplementary embedded value information F W D G r o u p H o l d i n g s L i m i t e d 富 衛 集 團 有 限 公 司 ( “ F W D G r o u p ” , “ F W D ” , t h e “ C o m p a n y ” , “ y o u ” o r “ y o u r ” ) h a s prepared, in respect of FWD Group and its subsidiaries, the embedded value (EV) as at 30 June 2026 and the value of new business (VNB) for the six months ended 30 June 2026 using traditional embedded value (TEV) methodology. The Company has also prepared additional analyses, including: – Analysis of EV movement for the six months ended 30 June 2026; – EV equity as at 30 June 2026; – Free surplus generation for the six months ended 30 June 2026; – Earnings profile as at 30 June 2026; and – Sensitivity analysis on EV and VNB. The EV, VNB and additional analyses are collectively referred to as the EV Results. For comparison purposes, the equivalent EV, EV equity and earnings profile results have also been presented as at 31 December 2025 while the equivalent VNB, analysis of EV movement and free surplus generation have been presented for the six months ended 30 June 2025. The EV Results, along with the methodology and assumptions that have been used to prepare the Results, have been summarised by the Company as part of the supplementary embedded value information (EV Disclosure) in the Interim Report as at, or for the six months ended 30 June 2026 . This letter (Opinion Letter) should be read in conjunction with the EV Disclosure. Scope of services Milliman Limited (“Milliman”, “we”, “us” or “our”) has been engaged by FWD Group to independently review and provide an opinion on the EV Results. Our scope of work, prepared in accordance with our engagement letter dated 11 March 2024 and the addendum to this engagement letter dated 6 October 2025, involved the following: • We have reviewed the methodology and derivation of assumptions used to determine the EV Results presented in the EV Disclosure. • We have reviewed the analysis that has been performed by FWD Group to support the risk discount rates. • We have reviewed certain elements of the Valuation Models 1 used to determin e value of in-force business (VIF) and VNB. • We have performed checks on the EV Results by Business Unit and have reviewed the consolidated EV Results for FWD Group. Embedded value supplementary report 136 1 Valuation Models refer to models developed in Prophet, a proprietary modelling software provided by a third party, FIS, and spreadsheets developed in Microsoft Excel for compilation of results and off-model adjustments.
Page 138
Milliman opinion Based on our review of the methodology and assumptions used by FWD to calculate the EV Results, Milliman concludes that: • The methodology used to calculate the EV Results is consistent in all material respects with the EV Policy. • The methodology specified in the EV Policy is in all material respects comparable to the TEV methodology commonly adopted by listed insurers incorporated in Asia. • The operating assumptions used to calculate the EV Results have been developed using the operating experience of the Business Units, with allowance for expected future trends where applicable, or have been set with reference to industry experience or pricing assumptions where the experience of the Business Units is not statistically credible. EV Results have been determined using long-term expense assumptions set on the basis that Business Units will be able to eliminate expense overruns in the short to medium term in line with internal business plans. An increase in expenses or a reduction in sales compared to the assumptions used in the business plan forecasts could lead to an increase in expense assumptions and adversely affect the EV Results. • The economic assumptions used to develop the EV Results have been determined having regard to the investment policy of each Business Unit, and current and expected future economic conditions, and are broadly consistent with economic assumptions adopted by insurers in Asia that report on a TEV basis. Checks have also been performed at a FWD Group level to validate the consistency of the allowance for risk in the risk discount rate with market consistent valuation approaches. • The EV Results have been prepared in all material respects in accordance with the methodology and assumptions described in the EV Disclosure. This has been validated through the sample model point checks performed for products making up over 90 per cent of VIF (measured by in-force statutory reserves) and 90 per cent of VNB (measured by NB APE) for each Business Unit. Embedded value supplementary report 137
Page 139
Reliances and limitations In carrying out our work and producing this Opinion Letter we have relied on information supplied by FWD. Reliance was placed on, but not limited to, the accuracy of the information provided to us. We have performed no audits or independent verification of the information furnished to us. FWD Group has confirmed to us that the data and information it has provided to us is accurate and complete. The EV Results include non-international financial reporting standards (non-IFRS) results and should not be viewed as a substitute for IFRS results. The results as presented in the EV Disclosure are not intended to represent the market value of the company. Rather, it is derived from a projection of future earnings and, therefore, reflects the value of a company’s earnings potential under a specific set of assumptions. The actuarial valuation of FWD Group has been developed on a going concern basis and assumes a continuation of the current, economic, political and social environment in the markets in which FWD Group operates. It therefore inherently assumes that the environment will remain stable. Any political, economic or social instability in these markets would add a degree of uncertainty to the results presented. In particular, the EV Results have been based on long-term unit cost loadings determined in accordance with FWD’s business plan forecasts. Any large movements in equity markets or interest rates could have a material impact on the EV Results. In determining the EV Results of FWD Group, assumptions have been made about future experience, including economic and investment experience, mortality, morbidity, persistency, expenses and taxes. Actual experience may differ from that assumed in the projections used to calculate the EV Results. To the extent actual experience is different from the assumptions, actual results will also differ from the results shown. The sensitivity of results to certain changes in assumptions is provided in the EV Disclosure. The expense assumptions have been chosen on the basis that each Business Unit would continue to operate on a going concern basis. They do not take into account any future changes to product strategy, sales volumes or other matters that may have a consequential impact on product specific expense loadings. They also do not take into account any strategic FWD Group spending or any matters that could lead to an increase in such spending beyond what has been planned and set aside in the VIF. The assumptions, including the allowance for Group Office expenses, have also been set with reference to Board approved business plans prepared by the Company. We have relied on the business plans provided to us and have not reviewed the assumptions underlying them. We have not attempted to assess the suitability or quality of the assets held by FWD Group or its reinsurance strategy. We have also not assessed, or made allowance for, any claims against FWD Group other than those made by policyholders under the normal terms of life insurance business. In particular, no account has been taken of liabilities in respect of pension entitlements, stock option plans, service contracts, leases and breaches of regulations. No investigation has been made into the accuracy of the unit pricing and unit allocation procedures adopted by each Business Unit. The EV Results have been prepared by FWD using the Company’s Valuation Models. Although we have performed extensive checks on the Valuation Models and underlying results, our checks were not exhaustive, and hence may not have uncovered all potential issues. The EV Results set out in the EV Disclosure do not include any allowance for withholding or other taxes that may apply to the payment of shareholder dividends on remittances out of the Business Units. Separately, we note that a consolidated tax adjustment has been made to reflect the impact of the global minimum tax rate of 15 per cent prescribed by the Organisation for Economic Co-operation and Development. We are not tax advisors and have relied on FWD Group’s internal assessment. Based on FWD Group’s assessment, the dividend leakage due to withholding tax is minimal (approximately one per cent of operating entity EV as at 30 June 2026), and that the approach taken with respect to withholding tax is appropriate for EV reporting purposes. Embedded value supplementary report 138
Page 140
Reserves, cost of capital and tax have been calculated using the prevailing regulatory and tax frameworks applicable at the respective Valuation Dates (i.e. 30 June 2026 or 31 December 2025), and do not take into account any future changes in these frameworks. With the introduction of the group-wide supervision framework by the Hong Kong Insurance Authority effective from 29 March 2021, FWD Group also performs internal analyses at least annually (the last study was as at 30 June 2026 to validate that the framework will not result in an increase in capital requirements beyond what has been assumed in the EV Results set out in the EV Disclosure. We have not reviewed these internal analyses. We have also relied on the opinion of the operating entities’ Appointed Actuaries and auditors that the reserves and capital requirements held as at the respective Valuation Dates comply with the prevailing regulations. Effective from 31 March 2026, capital regulations in Japan are changing to an economic value basis and this regulatory change has been reflected in the EV Results as at 30 June 2026 presented in the EV Disclosure. The EV Results allow for adjustments to dividends, profit sharing and crediting rate assumptions taking into account the investment return assumptions and profit sharing rules defined in regulations and/or internal company governance. We have relied on the Business Units’ application of these rules within the Valuation Models and note that the impact on the results if the rules incorporated in the Valuation Models are not followed in actual practice can be material. The EV Results presented in the EV Disclosure assume the ability to continue to optimise capital through existing external and internal reinsurance arrangements. Any revisions to these arrangements, due to regulatory change or other factors, may have a material impact on the EV Results. On behalf of Milliman Limited Wen Yee Lee FIAA Clement Bonnet IA, FASHK Principal & Consulting Actuary Principal & Consulting Actuary 25 August 2026 25 August 2026 Embedded value supplementary report 139
Page 141
Supplementary embedded value information 1. Highlights The EV is a measure of the value of shareholders’ interests in the distributable earnings from assets allocated to the in-force business after allowance for the aggregate risks in that business. The Group uses a traditional, deterministic discounted cash flow methodology to calculate its EV and VNB. This methodology makes an implicit overall level of allowance for risk including the cost of investment return guarantees and policyholder options, asset-liability mismatch risk, credit risk, the risk that actual experience in future years differs from that assumed, and the economic cost of capital, through the use of a risk discount rate. The equity attributable to shareholders of the Company on the embedded value basis (EV Equity) is the total of EV, goodwill and other intangible assets attributable to shareholders of the Company. More details on the EV Results, methodology a nd assumptions are covered in later sections of this EV Disclosure. Summary of key metrics As at As at Change Change US$ millions, unless otherwise stated 30 June 2026 31 December 2025 CER AER EV Equity 10,083 10,128 3 % (0.5) % Group embedded value (EV) 6,949 6,850 5 % 1 % Adjusted net worth (ANW) 3,732 3,293 20 % 13 % Value of in-force business (VIF) 3,216 3,557 (8) % (10) % EV per share (US$)(i) 5.43 5.37 5 % 1 % EV Equity per share (US$)(i) 7.88 7.94 3 % (1) % Six months Six months ended ended Change Change US$ millions, unless otherwise stated 30 June 2026 30 June 2025 CER AER Value of new business (VNB) 602 506 18 % 19 % Annualised premium equivalent (APE) 1,348 1,246 7 % 8 % PV new business premium (PVNBP) 7,883 6,394 23 % 23 % New business margin (percentage of APE) 44.7 % 40.6 % 4.1 pps 4.1 pps New business margin (percentage of PVNBP) 7.6 % 7.9 % (0.3) pps (0.3) pps Six months Six months ended ended Change Change US$ millions, unless otherwise stated 30 June 2026 30 June 2025 CER AER EV operating profit 968 837 15 % 16 % EV operating profit per share (US$)(ii) 0.76 0.71 6 % 7 % Underlying free surplus generation (UFSG) 352 428 (19) % (18) % Free surplus to fund new business 29 (11) nm nm Net underlying free surplus generation (Net UFSG) 381 417 (11) % (9) % Net UFSG per share (US$)(ii) 0.30 0.35 (18) % (16) % Notes: (i) The number of ordinary shares outstanding as at 30 June 2026 was 1,279,622,076. The adjusted number of ordinary shares outstanding as at 31 December 2025 was 1,276,005,277, which has been adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as of the reporting date. (ii) The adjusted weighted average number of ordinary shares outstanding for the six months ended 30 June 2026 was 1,277,830,325 (for the same period in 2025: 1,178,205,907). The weighted average number of ordinary shares outstanding for the six months ended 30 June 2025 was adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as at 1 January 2025. Refer to note 4.4 and 24 in the interim condensed consolidated financial statements for further information. Embedded value supplementary report 140
Page 142
2. Embedded value results 2.1. Embedded value by Business Unit The EV as at 30 June 2026 is presented consistently with the segment information in the interim condensed consolidated financial statements. Summary of EV by Business Unit1 As at 30 June 2026 As at 31 December 2025 US$ millions, unless otherwise stated ANW VIF EV ANW VIF EV Hong Kong & Macau 1,780 2,601 4,381 1,869 2,212 4,081 Thailand & Cambodia 1,715 732 2,446 2,279 464 2,743 Japan 2,162 (167) 1,996 1,320 959 2,278 Expansion Markets 1,062 516 1,578 1,008 455 1,463 Operating entity EV 6,719 3,682 10,401 6,476 4,090 10,566 Plus: Corporate and other net assets 597 — 597 320 — 320 Less: Unallocated Group Office expenses — (487) (487) — (487) (487) Less: Global minimum tax provision(i) (92) 21 (71) (19) (46) (65) Less: Financing (3,492) — (3,492) (3,484) — (3,484) Group EV 3,732 3,216 6,949 3,293 3,557 6,850 Goodwill and other intangible assets 3,134 3,279 Group EV Equity 10,083 10,128 Notes: (i) Please refer to the Section 4.2 of this EV Disclosure for the methodology of global minimum tax provision. Embedded value supplementary report 141 1 ANW by Business Unit is after net capital flows between Business Units and Group Office as reported in the interim condensed consolidated financial statements.
Page 143
2. Embedded value results (continued) 2.2. Reconciliation of ANW from IFRS equity Derivation of the consolidated ANW from IFRS equity US$ millions, unless otherwise stated As at 30 June 2026 As at 31 December 2025 IFRS equity attributable to Equity Holders of the Company 6,229 6,817 Difference between IFRS and local statutory asset and liability items 1,297 (1,001) Mark-to-market adjustment for property and mortgage loan and other investments, net of amounts attributable to participating funds 15 1,046 Elimination of intangible assets (3,251) (3,417) Recognition of tax impacts (329) 89 Recognition of non-controlling interest impacts of the above adjustments (28) (37) Elimination of external perpetual securities (203) (203) ANW 3,732 3,293 2.3. Breakdown of ANW The breakdown of the ANW for the Group between the required capital, as defined in Section 4.5 of this EV Disclosure, and the free surplus, which is the ANW in excess of the required capital, is set out below: Free surplus and required capital for the Group As at 30 June 2026 As at 31 December 2025 US$ millions, unless otherwise stated Op. entity Corp. and others Total Op. entity Corp. and others Total Free Surplus 3,864 570 4,434 4,552 301 4,853 Required Capital 2,855 (64) 2,790 1,924 — 1,924 Less: Financing — (3,492) (3,492) — (3,484) (3,484) ANW 6,719 (2,987) 3,732 6,476 (3,183) 3,293 Embedded value supplementary report 142
Page 144
2. Embedded value results (continued) 2.4. Value of new business The APE, VNB and new business margin (percentage of APE) for the Group for the six months ended 30 June 2026 is summarised in the table below. The VNB is defined as the present value, at the point of sale, of the projected after-tax statutory profits less the cost of required capital. Results are presented consistently with the segment information in the interim condensed consolidated financial statements. The new business margin (percentage of APE) and new business margin (percentage of PVNBP) are defined as VNB expressed as a percentage of APE and PVNBP respectively. APE is defined as annualised regular premiums plus 10 per cent of single premiums and PVNBP is defined as the present value of projected new business premium. Section 4.1 of this EV Disclosure contains a list of the entities included in this report and the mapping of these entities to Business Units for the purpose of this report. The Group VNB for the six months ended 30 June 2026 was US$602 million, an increase of US$96 million, or 18 per cent on constant exchange rates (CER) (19 per cent on actual exchange rates (AER)), from US$506 million for the six months ended 30 June 2025 . The Group new business margin (percentage of APE) for the six months ended 30 June 2026 was 44.7 per cent compared with 40.6 per cent for the six months ended 30 June 2025. The Group new business margin (percentage of PVNBP) for the six months ended 30 June 2026 was 7.6 per cent compared with 7.9 per cent for the six months ended 30 June 2025. Summary of APE, VNB and new business margin (percentage of APE) by Business Unit Six months ended 30 June 2026 Six months ended 30 June 2025 US$ millions, unless otherwise stated APE VNB New Business Margin (percentage of APE) APE VNB New Business Margin (percentage of APE) Hong Kong & Macau 679 332 48.9 % 640 267 41.7 % – Onshore 352 192 54.6 % 295 137 46.3 % – Offshore 327 140 42.8 % 345 130 37.7 % Thailand & Cambodia 311 139 44.8 % 311 137 44.1 % Japan 76 59 77.3 % 63 44 69.7 % Expansion Markets 282 78 27.8 % 232 58 25.1 % Global minimum tax provision na (6) nm na na na Group Total 1,348 602 44.7 % 1,246 506 40.6 % APE and VNB growth rate by Business Unit Six months ended 30 June 2026 - Six months ended 30 June 2025 APE APE VNB VNB US$ millions, unless otherwise stated Change in CER Change in AER Change in CER Change in AER Hong Kong & Macau 6 % 6 % 25 % 25 % – Onshore 19 % 19 % 41 % 41 % – Offshore (5) % (5) % 8 % 8 % Thailand & Cambodia (5) % — % (3) % 2 % Japan 29 % 21 % 43 % 34 % Expansion Markets 23 % 22 % 36 % 35 % Global minimum tax provision na na na na Group Total 7 % 8 % 18 % 19 % Embedded value supplementary report 143
Page 145
2. Embedded value results (continued) 2.5. Analysis of EV movement A breakdown of the EV movement at a consolidated group level is presented below. Analysis of movement in EV Six months ended 30 June 2026 Six months ended 30 June 2025 US$ millions, unless otherwise stated ANW VIF EV ANW VIF EV Opening EV Equity 10,128 8,736 Removal of goodwill and other intangible assets (3,279) (3,167) Opening EV 3,293 3,557 6,850 2,597 2,972 5,569 Expected return on EV 405 (86) 318 307 (13) 294 VNB — 602 602 — 506 506 Operating variances and assumption changes 44 3 47 35 1 37 Total EV operating profit 449 519 968 343 494 837 Economic variances and assumption changes (440) 143 (297) 468 (453) 15 Other non-operating variances 812 (969) (156) 40 (190) (150) Total EV profit 822 (307) 515 850 (149) 701 Corporate centre expenses (76) 8 (68) (69) — (69) Financing (107) — (107) (148) — (148) Foreign exchange movements (199) (41) (241) 233 94 327 Closing EV 3,732 3,216 6,949 3,463 2,917 6,380 Inclusion of goodwill and other intangible assets 3,134 3,262 Closing EV Equity 10,083 9,642 Closing EV per share (US$)(i) na na 5.43 na na 5.42 Closing EV Equity per share (US$)(i) na na 7.88 na na 8.18 Notes: (i) The number of ordinary shares outstanding as at 30 June 2026 was 1,279,622,076. The adjusted number of ordinary shares outstanding as at 30 June 2025 was 1,178,205,907, which has been adjusted on the basis that the Conversion of Shares and Share Consolidation were completed as of the reporting date. Embedded value supplementary report 144
Page 146
2. Embedded value results (continued) 2.5. Analysis of EV movement (continued) A breakdown of the EV movement at 30 June 2026 and 30 June 2025 is presented in the table above. EV was US$ 6,949 million at 30 June 2026 , an increase of 5 per cent on CER ( 1 per cent on AER) over the year from US$ 6,850 million at 31 December 2025. The increase was primarily driven by US$ 968 million from EV operating profit. EV Equity was US$10,083 million at 30 June 2026, an increase of 3 per cent on CER ( (0.5) per cent on AER) over the year from US$10,128 million at 31 December 2025, after the inclusion of goodwill and other intangible assets of US$3,134 million. EV operating profit increased by 15 per cent on CER ( 16 per cent on AER) to US$ 968 million ( 2025: US$ 837 million). Expected return on EV at 30 June 2026 increased to US$ 318 million ( 2025: US$ 294 million). VNB increased to US$ 602 million ( 2025: US$ 506 million). Overall operating variances and assumption changes amounted to US$ 47 million ( 2025: US$37 million). EV operating profit in 2026 increased, primarily from strong new business. Expense and commission variances in 2026 was US$ 39 million ( 2025: US$ 16 million) due to improved operating leverage. The VNB is calculated at the point of sale for business written during the year. The expected return on EV is the expected change in the EV over the year plus the expected return on the VNB from the point of sale to 30 June 2026. Operating experience variances reflect the impact on the ANW and VIF from differences between the actual experience over the year and that expected based on the operating assumptions. The EV profit of US$515 million (2025: US$701 million) is the total of EV operating profit, economic variances, the effect of changes in economic assumptions and other non-operating variances. Economic variances and assumption changes amounted to US$ (297) million ( 2025: US$ 15 million) in 2026, primarily from an increase in interest rates and lower than expected long-term investment returns in private equities impacting economic variances. Other non-operating variances amounted to US$ (156) million ( 2025: US$(150) million), including M&A business set up and restructuring related cost, IPO related costs including incentive costs, implementation costs for IFRS 9 and 17 and Group-wide supervision, one-off adjustments such as the impact of payments related to distribution agreements, and methodology and regulatory changes on EV . In 2026, other non-operating variances also included a negative impact from economic value-based solvency regulation (ESR) implementation of US$ 151 million. The EV movement in relation to the Group Corporate Centre amounted to US$ (175) million ( 2025: US$ (218) million). It includes capital movements, corporate centre expenses and financing. Foreign exchange movements were US$ (241) million ( 2025: US$ 327 million) primarily from Thai Baht and Japanese Yen depreciation against US dollar in 2026. Embedded value supplementary report 145
Page 147
2. Embedded value results (continued) 2.5. Analysis of EV movement (continued) Other non-operating variances A breakdown of the other non-operating variances is presented below. Six months Six months ended ended US$ millions, unless otherwise stated 30 June 2026 30 June 2025 Non-operating expense variances (9) (25) M&A, business set up and restructuring related costs (8) (7) IPO related costs including incentive costs — (10) Implementation costs for IFRS 9 and 17 and Group-wide supervision (1) (4) Other non-operating items — (5) Others (147) (125) Total (156) (150) Embedded value supplementary report 146
Page 148
2. Embedded value results (continued) 2.6. Free surplus generation Free surplus (FS) represents the excess of adjusted net worth over required capital. The Group holds FS to enable it to invest in new business, take advantage of inorganic opportunities and absorb the effects of capital market stress. The underlying free surplus generation (UFSG) represents the free surplus generated by the Group over the period, adjusted to exclude new business funding and certain non-recurring items. It excludes free surplus used to fund new business, investment return variances, corporate centre expenses and other items, acquisitions, partnerships (Acquisitions & partnerships) and business lines that have been terminated (Discontinued business), capital movements and the impact of financing, but includes methodology updates relating to accounting changes classified under opening adjustment shown in the table below. Free surplus used to fund new business refers to the change in free surplus arising from writing new business, including diversification benefit of adding new business, which in turn contributes to the overall free surplus balance. The net underlying FS generation (Net UFSG) represents the underlying FS generated from FWD Group allowing for the surplus used to fund new business. The FS generation is before adjustment for borrowing, with financing and financing costs reflecting a positive impact from any financing raised in the period and a negative impact from any financing and interest repaid in the period. Embedded value supplementary report 147
Page 149
2. Embedded value results (continued) 2.6. Free surplus generation (continued) Group’s FS decreased by US$ 427 million in 2026 (from US$ 1,369 million as at 31 December 2025 to US$ 942 million as at 30 June 2026 ), primarily from investment return variance. The change in FS was made up of the following key components: Underlying free surplus generation: – Opening adjustment in 2026 decreased to US$ 29 million ( 2025: US$102 million). primarily from Japa n ESR implementation of US$(74) million. – Underlying free surplus generation before opening adjustment in 2026 was US$ 323 million ( 2025: US$326 million). Positive impact of FS used to fund new business in 2026 was at US$ 29 million ( 2025: US$(11) million), primarily due to more upfront profit after shifting to ESR basis in Japan. Corporate centre expenses in 2026 was at US$73 million (2025: US$69 million). Financing costs in 2026 were at US$ 107 million ( 2025: US$148 million), reflecting deleveraging and refinancing efforts in reducing leverage ratio. Investment return variances and other items in 2026 were at US$ (629) million ( 2025: US$586 million), primarily due to higher interest rates and lower than expected long-term investment returns in private equities and unfavourable FX variance. Breakdown of free surplus generation Six months ended 30 June 2026 Six months ended 30 June 2025 US$ millions, unless otherwise stated Operating entities Corp. and others Total Operating entities Corp. and others Total Opening free surplus 4,552 (3,183) 1,369 4,081 (3,413) 668 Underlying free surplus generation 354 (1) 352 444 (16) 428 Opening adjustment 34 (5) 29 123 (20) 102 Underlying free surplus generation before opening adjustment 320 3 323 322 4 326 Free surplus used to fund new business 29 — 29 (11) — (11) Net underlying free surplus generation 382 (1) 381 433 (16) 417 Net underlying free surplus generation before opening adjustment 349 3 352 310 4 315 Investment return variances and other items (609) (19) (629) 635 (48) 586 Capital movements (462) 462 — (546) 546 — Corporate centre expenses — (73) (73) — (69) (69) Financing — (107) (107) — (148) (148) Closing free surplus 3,864 (2,922) 942 4,604 (3,149) 1,454 Embedded value supplementary report 148
Page 150
2. Embedded value results (continued) 2.7. Earnings profile The projected after-tax distributable earnings of the Group on a discounted and undiscounted basis for the in- force business as at 30 June 2026 and as at 31 December 2025 are set out in table below. The net-of-tax distributable earnings are defined as the distributable profits to shareholders from the assets backing the statutory reserves and the required capital of in-force business as at the respective Valuation Date. On a discounted basis, the total net-of-tax distributable earnings is equal to the sum of the required capital and the VIF after the cost arising from holding the required capital (CoC) for the Business Units and corporate and other adjustments. Cash flow profile of projected after-tax distributable earnings for the Group’s in-force business US$ millions, unless otherwise stated As at 30 June 2026 As at 31 December 2025 Expected period of emergence Undiscounted Discounted Undiscounted Discounted 1 - 5 years 2,189 1,705 1,771 1,312 6 - 10 years 2,981 1,670 2,993 1,687 11 - 15 years 2,447 923 2,426 929 16 - 20 years 2,255 558 2,085 527 21 years and thereafter 31,830 1,151 30,112 1,026 Total 41,702 6,007 39,387 5,481 The discounted value of net-of-tax distributable earnings ( 30 June 2026 : US$6,007 million, 31 December 2025 : US$5,481 million) plus free surplus ( 30 June 2026: US$942 million, 31 December 2025: US$1,369 million) is equal to EV (30 June 2026: US$6,949 million, 31 December 2025: US$6,850 million). Embedded value supplementary report 149
Page 151
3. Sensitivity analysis Sensitivity tests have been performed on the EV as at 30 June 2026 and 31 December 2025 and the VNB for the six months ended 30 June 2026 and 30 June 2025 in respect of changes in key assumptions discussed in Section 5 of this EV Disclosure. For each of the following tests, only the specified parameter has been changed with all other assumptions remaining unchanged: • 1 per cent increase in risk discount rates • 1 per cent decrease in risk discount rates • 0.5 per cent per annum increase in interest rates • 0.5 per cent per annum decrease in interest rates • 10 per cent increase in rates of policy discontinuance, premium discontinuance and partial withdrawal (i.e. 110 per cent of the rates under the base case) • 10 per cent decrease in rates of policy discontinuance, premium discontinuance and partial withdrawal (i.e. 90 per cent of the rates under the base case) • 10 per cent increase in rates of mortality and morbidity and loss ratios (i.e. 110 per cent of the rates and loss ratios under the base case) • 10 per cent decrease in rates of mortality and morbidity and loss ratios (i.e. 90 per cent of the rates and loss ratios under the base case) • 10 per cent increase in acquisition and maintenance expenses (i.e. 110 per cent of the acquisition and maintenance expenses under the base case) with no revisions made for Group Office expense adjustments • 10 per cent decrease in acquisition and maintenance expenses (i.e. 90 per cent of the acquisition and maintenance expenses under the base case) with no revisions made for Group Office expense adjustments • 5 per cent appreciation in presentation currency • 5 per cent depreciation in presentation currency • 10 per cent increase in equity prices (i.e. 110 per cent of equity prices (with projected bonus rates on participating business and the value of equity securities and equity funds changed consistently)) • 10 per cent decrease in equity prices (i.e. 90 per cent of equity prices (with projected bonus rates on participating business and the value of equity securities and equity funds changed consistently)) • 1 per cent per annum reduction in the net investment return for private equity assets The sensitivity tests on increase/decrease in interest rates have been applied to the net investment returns (and corresponding adjustments to the market value of assets for debt securities and derivatives, statutory reserving bases, bonus/dividend scales for participating business, crediting rates for universal life business, unit fund growth rates for unit linked business) and risk discount rate. The sensitivity tests on increase/reduction in equity prices have been applied as at the respective Valuation Dates and are not applicable to VNB. As FWD operates in multiple Asian markets, the Business Unit EV and VNB results for the Group have been converted from the respective local currency to FWD’s US dollar presentation currency. To provide sensitivity results to foreign currency movements, a change of +/- 5 per cent to the US dollar exchange rate has been shown. Embedded value supplementary report 150
Page 152
3. Sensitivity analysis (continued) The sensitivity tests have only been performed on the operating entity EV, with no sensitivities carried out on the EV contributed by corporate and other adjustments. For each of the remaining sensitivity analyses, the statutory reserving bases as at 30 June 2026 and 31 December 2025, projected policyholder dividends on participating business, crediting rates for universal life business and unit fund growth rates for unit-linked business were changed to be consistent with the sensitivity analysis assumptions, while all the other assumptions remain unchanged. The sensitivities chosen do not represent the boundaries of possible outcomes, but instead illustrate how certain alternative assumptions would affect the results. Sensitivity of operating entity EV As at 30 June 2026 As at 31 December 2025 US$ millions, unless otherwise stated EV Percentage change from base case EV Percentage change from base case Base case 10,401 10,566 Impact of: Increase risk discount rates by 1 per cent (643) (6.2) % (601) (5.7) % Reduce risk discount rates by 1 per cent 804 7.7 % 747 7.1 % Increase interest rates by 0.5 per cent p.a.(i) (130) (1.2) % (98) (0.9) % Reduce interest rates by 0.5 per cent p.a.(i) 118 1.1 % 93 0.9 % Increase discontinuance and partial withdrawal rates by 10 per cent (304) (2.9) % (274) (2.6) % Reduce discontinuance and partial withdrawal rates by 10 per cent 348 3.3 % 314 3.0 % Increase mortality and morbidity rates and loss ratios by 10 per cent (882) (8.5) % (714) (6.8) % Reduce mortality and morbidity rates and loss ratios by 10 per cent 851 8.2 % 706 6.7 % Increase acquisition and maintenance expenses by 10 per cent (152) (1.5) % (139) (1.3) % Reduce acquisition and maintenance expenses by 10 per cent 143 1.4 % 138 1.3 % Appreciation of presentation currency by 5 per cent (299) (2.9) % (324) (3.1) % Depreciation of presentation currency by 5 per cent 298 2.9 % 324 3.1 % Increase equity prices by 10 per cent 218 2.1 % 203 1.9 % Reduce equity prices by 10 per cent (222) (2.1) % (203) (1.9) % Reduce net investment returns for private equity assets by 1 per cent p.a. (120) (1.2) % (119) (1.1) % Notes: (i) For FWD Vietnam, for debt securities and derivatives with investment returns determined on a book yield basis, sensitivities have not been applied to the market values and investment returns for these securities. Embedded value supplementary report 151
Page 153
3. Sensitivity analysis (continued) The sensitivities tests performed on the consolidated VNB for the six months ended 30 June 2026 and 30 June 2025, together with the change in VNB expressed as a percentage of base case VNB. VNB does not include any allowance for acquisition expense overruns and commission overruns. Sensitivity of VNB As at 30 June 2026 As at 30 June 2025 US$ millions, unless otherwise stated VNB Percentage change from base case VNB Percentage change from base case Base case 609 506 Impact of: Increase risk discount rates by 1 per cent (62) (10.2) % (57) (11.2) % Reduce risk discount rates by 1 per cent 76 12.5 % 70 13.9 % Increase interest rates by 0.5 per cent p.a. 40 6.6 % 23 4.5 % Reduce interest rates by 0.5 per cent p.a. (45) (7.4) % (26) (5.1) % Increase discontinuance and partial withdrawal rates by 10 per cent (28) (4.7) % (29) (5.8) % Reduce discontinuance and partial withdrawal rates by 10 per cent 30 5.0 % 32 6.4 % Increase mortality and morbidity rates and loss ratios by 10 per cent (53) (8.7) % (47) (9.2) % Reduce mortality and morbidity rates and loss ratios by 10 per cent 49 8.0 % 47 9.2 % Increase acquisition and maintenance expenses by 10 per cent (41) (6.7) % (34) (6.8) % Reduce acquisition and maintenance expenses by 10 per cent 39 6.5 % 34 6.8 % Appreciation of presentation currency by 5 per cent (14) (2.3) % (13) (2.5) % Depreciation of presentation currency by 5 per cent 14 2.3 % 13 2.5 % Reduce net investment returns for private equity assets by 1 per cent p.a. (7) (1.2) % (7) (1.3) % Embedded value supplementary report 152
Page 154
4. Methodology 4.1. Entities included in this report The FWD Group operates through a number of subsidiaries and the two main holding companies are FWD Limited and FWD Group Limited. As at 30 June 2026, FWD Limited includes the following entities: • FWD Life Insurance Company (Bermuda) Limited; • FWD Life Insurance Company (Macau) Limited; • FWD Life Assurance Company (Hong Kong) Limited; • FWD Life (Hong Kong) Limited; • FWD Vietnam Life Insurance Company Limited; • FWD Takaful Berhad; • FWD Financial Planning Limited; • Antede Limited; • AMG Financial Group Limited; • AMG Wealth Management Limited; • FWD Financial Limited; • Sky Accord Limited; • Future Radiance Limited; • FWD Properties Limited; • PT Asuransi BRI Life; • FWD BSN Holdings Sdn. Bhd.; • FWD Insurance Berhad; • FMH Capricorn Holdings Sdn. Bhd.; and • FWD Malaysia Holdings Sdn.Bhd. Embedded value supplementary report 153
Page 155
4. Methodology (continued) 4.1. Entities included in this report (continued) FWD Life Insurance Company (Bermuda) Limited, FWD Life Insurance Company (Macau) Limited, FWD Life Assurance Company (Hong Kong) Limited and FWD Life (Hong Kong) Limited are the life insurance subsidiaries of FWD Limited, and PT Asuransi BRI Life is a life insurance associate of FWD Limited. FWD Limited owns a minority 43.96 per cent stake in PT Asuransi BRI Life, a life insurance subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk. On 3 April 2023, the Group, along with local investors, acquired a 70 per cent stake in FWD BSN Holdings Sdn. Bhd., a company established under the laws of Malaysia. FWD BSN Holdings Sdn. Bhd. is the holding company of FWD Insurance Berhad (formerly known as Gibraltar BSN Life Berhad), a life insurance company acquired from Prudential Insurance Company of America. FWD Takaful Berhad 1 is the life insurance subsidiaries of FWD Malaysia Holdings Sdn. Bhd.. FWD Vietnam Life Insurance Company Limited is the life insurance subsidiaries of FWD Life Insurance Company (Bermuda) Limited. FWD Life Insurance Company (Bermuda) Limited has also established a branch in Singapore (FWD Bermuda Singapore) and commenced writing new business through the branch in 2024. FWD Vietnam Life Insurance Company Limited and FWD Bermuda Singapore are treated as separate entities, and the value from these entities is reported separately and not included within the results of FWD Life Insurance Company (Bermuda) Limited. As at 30 June 2026, FWD Group Limited includes the following entities: • FWD Life Insurance Corporation; • FWD Life Insurance Public Company Limited; • PT FWD Insurance Indonesia; • FWD Singapore Pte. Ltd.; • FWD Life Insurance Company, Limited; • FWD Reinsurance SPC, Ltd.; • FWD Life Insurance (Cambodia) Plc.; • IPP Financial Advisers Pte. Ltd.; and • PT FWD Insurance Indonesia Syariah FWD Life Insurance Company, Limited, FWD Reinsurance SPC, Ltd., FWD Life Insurance Public Company Limited , PT FWD Insurance Indonesia, FWD Life Insurance Corporation, FWD Singapore Pte. Ltd., and FWD Life Insurance (Cambodia) Plc. are life insurance subsidiaries of FWD Group Limited. Embedded value supplementary report 154 1 On 1 January 2026, there was a completion of intragroup transfer of all the shares in FWD Takaful Berhad held by FWD Life Insurance Company (Bermuda) Limited to FWD Malaysia Holdings Sdn. Bhd..
Page 156
4 Methodology (continued) 4.1. Entities included in this report (continued) Operating entities in this report refer to life insurance subsidiaries and associates, and non-life insurance subsidiaries, as well as other subsidiaries, associates and joint ventures 1. Life insurance subsidiaries and associates refer to life insurance companies, including composite insurers. Non-life insurance subsidiaries refer to entities that are general insurance companies, asset management companies and financial planning/broking firms. All other entities that are held in FWD Limited and FWD Group Limited and not listed above are classified as non-operating entities and form part of corporate and other adjustments. The entities for which VIF and VNB results have been determined are referred to as Business Units in this Report. Several entities have been grouped as one Business Unit by FWD. The Business Units referred to in this Report are as follows: • FWD Hong Kong collectively includes the following entities: – FWD Life Insurance Company (Bermuda) Limited (FWD Life (Bermuda))2; – FWD Life Assurance Company (Hong Kong) Limited (FWD Life Assurance (Hong Kong)); – FWD Life (Hong Kong) Limited (FWD Life (Hong Kong)); – FWD Financial Planning Limited; and – Antede Limited3 • FWD Life Insurance Company (Macau) Limited (FWD Macau) • FWD Life Insurance Public Company Limited (FWD Thailand) • FWD Life Insurance (Cambodia) Plc. (FWD Cambodia) • FWD Japan collectively includes the following entities: – FWD Life Insurance Company, Limited (FWD Life Japan); and – FWD Reinsurance SPC, Ltd. (FWD Reinsurance)4 • FWD Indonesia collectively includes the following entities: – PT FWD Insurance Indonesia; and – PT FWD Insurance Indonesia Syariah • PT Asuransi BRI Life (BRI Life) Embedded value supplementary report 155 1 Subsidiaries are all entities (including structure entities) over which the Group has control, while associates are entities over which the Group has significant influence, but which it does not have control or joint control. Joint ventures are entities whereby the Group and other parties undertake an economic activity which is subject to joint control arising from a contractual agreement. 2 The life insurance subsidiaries of FWD Life (Bermuda) (i.e. FWD Malaysia and FWD Vietnam) are treated as separate entities and have been excluded from the results prepared for FWD Life (Bermuda). FWD Financial Limited, Sky Accord Limited, Future Radiance Limited and FWD Properties Limited are included in FWD Life (Bermuda). 3 AMG Financial Group Limited and AMG Wealth Management Limited are included in Antede Limited. 4 The business ceded to FWD Reinsurance is purely from wholly owned FWD Japanese entities. Hence FWD Reinsurance is included as part of FWD Japan.
Page 157
4. Methodology (continued) 4.1. Entities included in this report (continued) • FWD Malaysia collectively includes the following entities: – FWD Takaful Berhad; and – FWD Malaysia Holdings Sdn. Bhd. • FWD IB collectively includes the following entities: – FWD Insurance Berhad; – FWD BSN Holdings Sdn. Bhd. (FWD BSN Holdco); and – FMH Capricorn Holdings Sdn. Bhd. • FWD Life Insurance Corporation (FWD Philippines) • FWD Singapore collectively includes the following entities: – FWD Singapore Pte. Ltd.; and – IPP Financial Advisers Pte. Ltd. • FWD Bermuda Singapore • FWD Vietnam Life Insurance Company Limited (FWD Vietnam) FWD Life (Bermuda) established a new operation in Bermuda in 2023 to provide high-net-worth (HNW) customers in Hong Kong and Singapore with a flexible legacy planning solution. This new operation is referred to as the HNW operation. The HNW operation in Hong Kong commenced writing new business in 2023, while FWD Bermuda Singapore commenced writing new business in 2024. The value in respect of the HNW operation in Hong Kong and FWD Bermuda Singapore is included as part of the EV Results for Hong Kong and Singapore region set out in this report respectively. The VNB has been presented by region, while the EV and other reporting metrics have been presented at a consolidated group level. The allocation of Business Units to each region is mapped out below: • Hong Kong and Macau: FWD Hong Kong and FWD Macau • Thailand and Cambodia: FWD Thailand and FWD Cambodia • Japan: FWD Japan • Expansion Markets: FWD Indonesia, BRI Life, FWD Malaysia, FWD IB, FWD Philippines, FWD Singapore, FWD Bermuda Singapore and FWD Vietnam The EV Results in this Report represent a 99.96 per cent sharing in FWD Thailand, a 43.96 per cent holding in BRI Life, a 70 per cent 1 holding in FWD BSN Holdco, a 40 per cent holding in IPP Financial Advisers Pte. Ltd. and a 100 per cent holding for other life insurance entities. Embedded value supplementary report 156 1 Refers to the stake in FWD BSN Holdco acquired by FWD Group and local investors. The Group owns 20 per cent of the 70 per cent stake in FWD BSN Holdco while FWD BSN Holdco owns 100 per cent of FWD IB. The Group’s economic interest in FWD IB is therefore 14 per cent (i.e. 20 per cent x 70 per cent x 100 per cent) of FWD Insurance Berhad and FWD BSN Holdco and 20 per cent of FMH Capricorn Holdings Sdn. Bhd..
Page 158
4. Methodology (continued) 4.2. Embedded value and value of new business The Group uses a traditional deterministic discounted cash flow methodology to determine its EV and VNB. This methodology makes an implicit overall level of allowance for risk including the cost of investment return guarantees and policyholder options, asset-liability mismatch risk, credit risk, the risk that actual experience in future years differs from that assumed, and the economic cost of capital, through the use of a risk discount rate. Typically, the higher the risk discount rate, the greater the allowance for these factors. This is a common methodology currently used by life insurance companies in Asia. The business included in the VIF and VNB calculations comprises all life insurance business, including medical, accident & health business managed by the Business Units. No allowance has been made in the VIF for non-life business. The EV is taken to be the sum of the ANW and VIF. The ANW is the statutory net asset value reflecting the excess of the assets backing the policy reserves and other liabilities of the life (and similar) business of the Group, plus mark-to-market adjustments for assets that have not been held on a market value basis, plus the statutory net asset value reported for the other operating entities not referred to as Business Units, less the value of intangible assets. The ANW for non-operating entities reflects the reported IFRS equity, adjusted to reverse out the value of intangible assets aligned with the approach for each Business Unit and for subordinated perpetual capital securities issued through FWD Limited and zero coupon subordinated perpetual capital securities issued through FWD Group Limited. These securities are treated as equity in the interim condensed consolidated financial statements of FWD Group Holdings Limited (referred to as IFRS accounts). The carrying value of these securities has been deducted in the ANW when determining the Group EV. It excludes any amounts not attributable to shareholders of the Company. The VIF is the present value of future net-of-tax statutory profits emerging in the future from the current in-force business less CoC required to support the in-force business. The CoC is calculated as the present value of the net-of-tax investment return on shareholder assets backing required capital, plus the present value of any changes in required capital, less the face value of the required capital at the respective Valuation Dates. Where the required capital may be covered by policyholder assets such as surplus assets in a participating fund, there is no associated cost of capital included in the VIF or VNB. A deduction has been made from the VIF for the present value of future net-of-tax unallocated Group Office expenses, representing the expenses incurred by the Group Office which are not allocated to the Business Units. These unallocated Group Office expenses have been deducted from the VIF. As most of these expenses are incurred in Hong Kong Dollars, the future unallocated Group Office expenses have been discounted using the risk discount rate applicable to Hong Kong and Macau. The EV Results have been determined using long-term expense assumptions set on the basis that Business Units will be able to eliminate expense overruns in the short to medium term in line with internal business plans. The VIF includes deductions relating to future maintenance expense overruns for in-force business based on the latest business plans of the Business Units. The provision for expense overruns assumed in the VIF excludes future acquisition expense overruns and commission overruns, any expected one-off and non-recurrent expenses, and future maintenance expense overruns for new business that was not in-force as at the respective Valuation Dates. EV Equity is the total of EV, goodwill and other intangible assets attributable to shareholders of the Company. Embedded value supplementary report 157
Page 159
4. Methodology (continued) 4.2. Embedded value and value of new business (continued) The VNB is the present value, measured at the point of sale, of future net-of-tax statutory profits emerging in the future from new business sold in the period less the corresponding cost of capital. The VNB for the Group is calculated quarterly, based on assumptions applicable at the start of each quarter. The VNB results shown in this Report are based on long-term unit costs rather than current expense levels and make no allowance for the value of acquisition expense overruns and commission overruns in respect of the underlying new business. For each Business Unit, FWD has evaluated the potential need for additional tax adjustments in relation to the global minimum tax initiative led by the Organisation for Economic Co-operation and Development. These adjustments have been accounted for separately within the consolidated group results arising when the corporate tax rate under the Business Unit falls below 15 per cent. Embedded value supplementary report 158
Page 160
4. Methodology (continued) 4.3. Definition of new business The VNB for each Business Unit represents the value to shareholders arising from the new business issued during the relevant reporting period. The VNB covers all new life insurance sales with premiums paid and policies issued during the reporting period. Incremental premiums to existing contracts, if the increases are triggered by corresponding increases in benefits, are considered to be part of VNB. 4.4. Valuation of future statutory losses For certain lines of business, projected future statutory profits are negative due to the local statutory reserves being insufficient to meet the value of future policyholder cash flows. Within a traditional embedded value framework, there are a number of acceptable methods for determining the value of a combination of positive and negative statutory profits for different lines of business. For the purposes of this valuation, a sterling reserve is set up for the future projected statutory losses by discounting them at the earned rate for the relevant Business Unit, with any negative VIF eliminated for each reported segment by reducing the ANW and EV. Embedded value supplementary report 159
Page 161
4. Methodology (continued) 4.5. Required capital Each of the Business Units has a regulatory requirement to hold shareholder capital in addition to the assets backing the insurance liabilities. The Group’s assumed levels of local required capital for each Business Unit are set out in the table below: Business Unit Required capital FWD Hong Kong 100% of regulatory risk-based capital requirement FWD Macau 150% of required minimum solvency margin FWD Thailand 140% of regulatory risk-based capital requirement (RBC 2) FWD Cambodia 120% of required minimum solvency margin FWD Life Japan 100% of regulatory risk-based capital requirement FWD Reinsurance 100% of regulatory risk-based capital requirement FWD Indonesia and BRI Life 120% of regulatory risk-based capital requirement FWD Malaysia and FWD IB 195% of regulatory risk-based capital requirement for FWD Malaysia 200% of regulatory risk-based capital requirement for FWD IB FWD Philippines 125% of regulatory risk-based capital requirement FWD Singapore 114% of regulatory risk-based capital requirement (RBC 2) FWD Bermuda Singapore 107% of regulatory risk-based capital requirement (RBC 2) FWD Vietnam 100% of required minimum solvency margin The Hong Kong Insurance Authority introduced a group-wide supervision framework effective from 29 March 2021. FWD Group performed an internal study on 30 June 2026 to validate that the framework will not introduce any additional cost of capital requirements beyond those set out in this Report. 4.6. Foreign exchange The EV as at 30 June 2026 and 31 December 2025 has been converted into US dollars using exchange rates as at each valuation date. The VNB and EV operating profit have been calculated quarterly using the quarterly average exchange rates applicable. The changes in EV and EV Equity based on CER have been calculated by converting the local currency results for each Business Unit to USD using the end of period exchange rate applied to both the results at the end of the period and the results at the end of the prior period. The changes in VNB, EV operating profit and free surplus generation based on CER have been calculated by converting the local currency results to USD using the average exchange rates observed for the current reporting period, applied to both results in the current period and results in the prior period. Embedded value supplementary report 160
Page 162
5. Assumptions 5.1. Introduction This section summarises the assumptions used by the Group to determine the EV as at 30 June 2026 and the VNB for the six months ended 30 June 2026 and highlights certain differences in assumptions between the EV as at 31 December 2025 and the EV as at 30 June 2026. 5.2. Economic assumptions The economic assumptions for each Business Unit have been set based on long-term returns on assets. The long- term returns have been set with reference to the Group’s long-term outlook for the economy, interest rates and asset class yields. An adjustment has been included to grade the economic assumptions from the current market yields observed at the respective Valuation Dates to the assumed long-term returns. For each Business Unit, the investment returns have been determined by applying the projected annual returns by major asset category to the assumed asset mix. The asset mix has been determined based on current and future target asset allocations. Within each Business Unit, the investment returns may differ by product group or by fund. The difference between the risk discount rate and the risk-free rate of return (set with reference to 10-year government bond yields) is referred to as the risk margin. The risk margin is intended to represent the level of additional return an investor might consider to be appropriate to reflect the underlying risk of the business. To provide assurance that the economic assumptions are internally consistent with current economic conditions as at the respective Valuation Dates, the Group has also performed various analyses to assess if the risk discount rate used is appropriate, including comparing the TEV results with the results from market consistent valuations performed by FWD. The approach of using market consistent analyses to assess the reasonableness of the risk discount rate is a common practice for insurers that report TEV results. Table in this section sets out the risk discount rates, local equity returns and long-term 10-year government bond yields assumed in the EV calculations, along with the current market 10-year government bond yields referenced in the EV Results as at 30 June 2026 and 31 December 2025 . VNB has been calculated quarterly, based on the economic assumptions at the start of the quarter. Embedded value supplementary report 161
Page 163
5. Assumptions (continued) 5.2. Economic assumptions (continued) The table below summarises the current market 10-year government bond yields referenced in EV calculations. Current market 10-year government bond yields referenced in EV calculations (per cent) Business Unit As at 30 June 2026 As at 31 December 2025 FWD Hong Kong and FWD Macau(i) 4.44 4.18 FWD Thailand 2.06 1.66 FWD Cambodia na(ii) na(ii) FWD Japan 2.68 2.08 FWD Indonesia and BRI Life 7.17 6.12 FWD Malaysia and FWD IB 3.62 3.50 FWD Philippines 6.94 6.03 FWD Singapore and FWD Bermuda Singapore 2.04 2.22 FWD Vietnam 4.52 4.19 Group Office expense adjustment na na The table below summarises the risk discount rates and long-term investment returns assumed in EV calculations. The same risk discount rates were used for all the EV Results shown in Section 1 and Section 2 of this EV Disclosure. The present value of unallocated Group Office expenses was calculated using the FWD Hong Kong risk discount rate. Risk discount rates assumed in EV calculations (per cent) Long-term investment returns assumed in EV calculations (per cent) 10-year government Local equities As at As at As at As at As at As at Business Unit 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 FWD Hong Kong and FWD Macau(i) 8.45 8.45 3.75 3.75 8.00 8.00 FWD Thailand 7.60 7.60 2.80 2.80 7.60 7.60 FWD Cambodia 12.60 12.60 na(ii) na(ii) na(ii) na(ii) FWD Japan 7.00 7.00 1.50 1.50 na na FWD Indonesia and BRI Life 13.00 13.00 6.50 6.50 10.50 10.50 FWD Malaysia and FWD IB 8.65 8.65 3.75 3.75 8.35 8.35 FWD Philippines 12.55 12.55 5.75 5.75 10.00 10.00 FWD Singapore and FWD Bermuda Singapore 7.35 7.35 2.70 2.70 8.00 8.00 FWD Vietnam 10.65 10.65 4.00 4.00 9.30 9.30 Group Office expense adjustment 8.45 8.45 na na na na Notes: (i) The 10-year government bond yields shown above are based on US dollar bond yields. (ii) na as the investment return assumption for FWD Cambodia has been set with reference to fixed deposit rates. Embedded value supplementary report 162
Page 164
5. Assumptions (continued) 5.3. Persistency Persistency assumptions include lapses, premium holidays, partial withdrawals and renewals. The assumptions differ by policy year and are usually split by product or product type. They have been determined by each Business Unit based on historical experience where statistically credible, with allowance for current and future trends and with reference to pricing assumptions where the data available is limited or not statistically credible. 5.4. Expenses The expense assumptions have been set by each Business Unit considering both historical experience and projected expenses in the relevant business plans. Using these expense assumptions results in expense overruns and commission overruns in the short term, as the aggregated amounts in the Valuation Models are lower than current operating expenses and commission-related costs. These overruns are expected to reduce over time based on business plan forecasts prepared by the Business Units. The long-term unit cost loadings have been set to support the general operating expenses in line with approved business plans. Any one-off and non-recurrent expenses have been excluded from the expense loadings. The Group’s justification for using long-term unit cost loadings is that expense overruns and commission overruns are expected to be eliminated in the short to medium term. The results, therefore, are reliant on the ability of the Business Units to reduce these expense overruns and commission overruns as planned. Assumptions for commission rates and other sales-related payments have been set in line with actual experience. Using these expense assumptions results in expense and commission overruns in the short term. These overruns are expected to reduce over time based on business plan forecasts prepared by the Business Units. Maintenance expense overruns – VIF adjustment The VIF includes deductions relating to future maintenance expense overruns for in-force business based on the latest business plans of the Business Units. The provision for expense overruns assumed in the VIF excludes future acquisition expense overruns and commission overruns, any expected one-off and non-recurrent expenses, and future maintenance expense overruns for new business that was not in-force as at the respective Valuation Dates. Group Office expenses Group Office expenses are divided into two categories: allocated and unallocated expenses. The allocated Group Office expenses have been charged directly to Business Units and accounted for in the expense studies prepared by each Business Unit when determining expense loadings. The unallocated Group Office expenses are incurred in respect of shareholder services and other developments. The projected unallocated Group Office expenses assumed in the EV include allowance for an increase in allocation of Group Office expenses to Business Units (to the extent that these expenses can be absorbed by expense underruns forecast in the Business Units’ business plans) combined with a planned reduction in the overall expenses. These unallocated Group Office expenses have all been included in the consolidated EV, as the Group does not split them into acquisition and maintenance expenses. Embedded value supplementary report 163
Page 165
5. Assumptions (continued) 5.4 Expenses (continued) The adjustment for unallocated Group Office expenses has been calculated as the present value of the projected unallocated Group Office expenses, discounted at the risk discount rates applicable for Hong Kong and Macau. The unallocated Group Office expenses do not include expenses attributable to the Group’s strategic initiatives, as no shareholder value has yet been placed on these initiatives. Any costs relating to these initiatives will be captured as a reduction to ANW as they are incurred. The Group’s costs related to the platform for insurance services (e.g. claims, underwriting) are included, and no revenue anticipated from potential future partnerships is allowed for. The projection of unallocated Group Office expenses for the first three projection years is based on the Group’s internal business plan. From projection years four to ten, the Group has assumed that the unallocated Group Office expenses will reduce as more expenses can be allocated to Business Units, with unallocated Group Office expenses from projection years eleven to fifteen growing at the inflation rate assumed for Hong Kong and Macau of 2.3 per cent p.a. A 15-year period has been used to reflect the run-off of in-force business, in line with the Group EV policy (referred to as EV Policy). The same term and inflation assumptions have been used for each year of respective Valuation Date. 5.5. Expense inflation The expected long-term expense inflation rates used by each Business Unit are set out below: Expense inflation assumptions by Business Unit (per cent) Business Unit As at 30 June 2026 As at 31 December 2025 FWD Hong Kong and FWD Macau 2.3 2.3 FWD Thailand 2.0 2.0 FWD Cambodia 5.0 5.0 FWD Japan 0.4 0.4 FWD Indonesia and BRI Life 3.5 3.5 FWD Malaysia and FWD IB 3.0 3.0 FWD Philippines 3.0 3.0 FWD Singapore and FWD Bermuda Singapore 3.0 3.0 FWD Vietnam 5.0 5.0 Embedded value supplementary report 164
Page 166
5. Assumptions (continued) 5.6. Mortality Mortality assumptions have been determined by each Business Unit based on historical experience where statistically credible and with reference to either pricing assumptions or industry experience where there is limited claims experience available. The assumptions have been expressed as a percentage of either a standard industry experience table or set as a percentage of reinsurance rates. For the following Business Units, an allowance has also been made for assumed future mortality improvement (set with reference to a combination of population, industry and company experience): – FWD Hong Kong and FWD Macau: Mortality improvement has been applied on all lines of business. – FWD Japan: Mortality improvement rate has been applied on certain products, namely Accident & Health and annuity products. 5.7. Morbidity Similar to mortality, morbidity assumptions have been developed based on historical experience where statistically credible, with allowance for current and future trends, and with reference to pricing assumptions where the data available is limited or not statistically credible. The assumptions have either been set as a percentage of reinsurance rates or expressed as a loss ratio applied to the premium earned. 5.8. Reinsurance Reinsurance assumptions have been developed by each Business Unit based on the reinsurance arrangements in- force as at the valuation date and the recent historical and expected future experience. 5.9. Policyholder dividends, profit sharing and interest crediting The projected dividends, profit sharing and crediting rate assumptions have been determined by each Business Unit taking into account the investment return assumptions and profit sharing rules (from regulatory and/or internal governance requirements), as well as other commercial considerations such as market competition and policyholders’ reasonable expectations. 5.10. Taxation The projected statutory profits used to determine the EV and VNB are net of corporate tax. The projections take into account, where applicable, any benefits arising from tax losses carried forward, and have been based on a continuation of the current tax legislation in each jurisdiction. The local corporate income tax rates used by each Business Unit are set out below: Local corporate income tax rates (per cent) by Business Unit As at 30 June 2026 As at 31 December 2025 FWD Hong Kong 16.5 16.5 FWD Macau 12 12 FWD Thailand 20 20 FWD Cambodia 20 20 FWD Japan(i) 28.93 28.93 FWD Indonesia and BRI Life 22 22 FWD Malaysia and FWD IB 24 24 FWD Philippines 25 25 FWD Singapore and FWD Bermuda Singapore 17 17 FWD Vietnam 20 20 Notes: (i) The corporate income tax rate of FWD Reinsurance is zero. Embedded value supplementary report 165
Page 167
5. Assumptions (continued) 5.10. Taxation (continued) The tax assumptions used in the valuation reflect the local corporate income tax rates set out above. Where applicable, tax payable on investment income has been reflected in projected net investment returns. Given the uncertainty around the timing of dividend distributions, no allowance has been made to the EV Results to reflect any withholding or remittance taxes that may be applicable on any future dividend distributions from the Business Units to the Group. The Group has performed certain projections of the withholding tax position of the relevant Business Units and concluded the impact to the EV Results as at 30 June 2026 would be immaterial (approximately one per cent of the operating entity EV). The global minimum tax adjustment is included in the EV Results as at 30 June 2026. 5.11. Statutory valuation bases The projection of regulatory liabilities at future points in time assumes the continuation of the reserving methodologies used to value policyholder liabilities as at the valuation date. 5.12. Product charges Management fees and product charges reflected in the VIF and VNB have been assumed to follow existing scales. 6. Events after the reporting period Details of the significant events after the latest reporting date (i.e. 30 June 2026 ) are set out in note 30 to the interim condensed consolidated financial statements. Embedded value supplementary report 166
Page 168
Review of financial statements The Audit Committee has reviewed the Group’s interim condensed consolidated financial statements for the six months ended 30 June 2026. The interim condensed consolidated financial statements for the six months ended 30 June 2026 are unaudited, but have been reviewed by Ernst & Young, the independent auditor of the Company, in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. Interim dividend No interim dividend has been declared for the six months ended 30 June 2026. Share registrar If you have any enquiries relating to your shareholding, please contact the Company’s Hong Kong share registrar with the contact details set out below: Tricor Investor Services Limited Address: 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong Telephone: (852) 2980 1333 Fax: (852) 2810 8185 Email: is-enquiries@vistra.com Electronic communications For environmental and cost reasons, Shareholders are encouraged to receive the Company’s corporate communications (as defined in the Listing Rules) by electronic means through the Company’s website at www.fwd.com and the Stock Exchange’s website at www.hkexnews.hk. You may at any time send a written notice to the Company c/o the Company’s Hong Kong share registrar or via email at 1828-ecom@vistra.com specifying your name, address and request to change your means of receipt of all of the Company’s corporate communications. Board of Directors As at the date of this announcement, the Directors are: Professor MA Si Hang, Frederick as Chairman and Independent Non-executive Director; Mr. LI Tzar Kai, Richard and Mr. HUYNH Thanh Phong (Group Chief Executive Officer) as Executive Directors; Mr. Walter KIELHOLZ, Mr. John DACEY and Mr. Martin ZINGG as Non-executive Directors; and Ms. CHUNG Kit Hung, Martina, Mr. John BAIRD, Mr. Dirk SLUIMERS, Ms. Laura DEAL-LACEY, Ms. Kyoko HATTORI, Ms. Yijia TIONG, Mr. LEUNG Ka Kui, Dominic and Mr. Andrew WEIR as Independent Non-executive Directors. Information for shareholders 167
Page 169
Forward-looking statements This announcement may contain certain forward-looking statements that involve risks and uncertainties, including statements based on the Group’s current expectations, assumptions, estimates and projections about the Group and the insurance industry. All statements other than statements of historical fact contained in this announcement, including, without limitation, the discussions of the Group’s business strategies, objectives and expectations regarding its future operations, margins, profitability, liquidity and capital resources, the future development of, and trends and conditions in, the insurance industry and the general economy of the countries in which the Group operates or plans to operate, the Group’s ability to control costs, the nature of, and potential for, the future development of the Group’s business, and any statements preceded by, followed by or that include words and expressions such as “expect”, “believe”, “plan”, “intend”, “estimate”, “forecast”, “project”, “anticipate”, “seek”, “may”, “will”, “ought to”, “would”, “should” and “could” or similar words or statements, as they relate to the Group or its management, are intended to identify forward-looking statements. These statements are based on assumptions regarding the Group’s present and future business, its business strategies and the environment in which it will operate. These forward-looking statements reflect the Group’s current views as to future events and are not a guarantee of its future performance. Forward-looking statements are subject to certain known and unknown risks, uncertainties and assumptions, which may cause the Group’s actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These forward-looking statements include statements regarding, among other things, changes in the laws, rules and regulations relating to the Group’s business operations, technological changes in the future, prevailing economic and market conditions in the markets in which the Group operates or plans to operate, changes or volatility in interest rates, foreign exchange rates or other rates or prices that may affect the Group’s operations and financial results, changes in population growth and other demographic trends, including mortality, morbidity and longevity rates, developments of competitors and other competitive pressures within the insurance industry in which the Group operates, changes in consumer demand and preferences for the products and services the Group offers, the Group’s ability to maintain and expand its customer base efficiently, the effectiveness of the Group’s ability to identify, measure, monitor and control risks in its business, including its ability to improve its overall risk profile and risk management practices, the Group’s ability to properly price its products and services and establish reserves for future policy benefits and claims, developments in the Group’s business strategies and business plans, and the Group’s ability to successfully implement its strategy, growth and expansion. Projections, assumptions and estimates of the Group’s future performance and the future performance of the industry in which it operates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. Subject to the requirements of applicable laws, rules and regulations, the Group does not have any obligation, and undertakes no obligation, to update or otherwise revise the forward-looking statements in this announcement, whether as a result of new information, future events or otherwise. As a result of these and other risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this announcement might not occur in the way the Group expects, or at all. Accordingly, you should not place undue reliance on any forward-looking information. All forward-looking statements in this announcement are qualified by reference to the cautionary statements set forth in this section. Information for shareholders 168
Page 170
active agent Monthly average number of agents who sold at least one case in each reporting month in that year. actual exchange rate or AER Actual exchange rates for the relevant periods used for the purpose of calculation of growth. adjusted net worth or ANW Statutory net asset value, reflecting the excess of assets over policy reserves and other liabilities reported on a local regulatory basis plus/minus mark-to-market adjustments for assets that have not been held on a market value basis minus the value of intangible assets. adjusted per share calculations Immediately prior to the completion of the IPO on the main board of the Stock Exchange, the Company underwent the Conversion of Shares and Share Consolidation. To better reflect the economics prior to the completion of the IPO, the per share metrics for the six months ended 30 June 2025 and as at 30 June 2025 are calculated by adjusting the weighted average number of ordinary shares or the number of ordinary shares outstanding for the effect of the Conversion of Shares and Share Consolidation, assuming these events occurred at 1 January 2025. The Conversion of Shares and Share Consolidation are described in notes 4.4 and 24 in the interim condensed consolidated financial statements. agent productivity Measured by APE per active agent, for the six months ended 30 June 2026. AGM The Company’s 2026 annual general meeting held on 29 May 2026. AI Artificial intelligence. Alliance Bank Alliance Bank Malaysia Berhad. ALM Asset-liability management. annualised premium equivalent or APE The sum of 10 per cent of single premiums and 100 per cent of annualised first year premiums for all new policies, before reinsurance ceded. APE provides an indicative volume measure of new policies issued in the relevant period. For takaful business, APE refers to annualised contribution equivalent. Audit Committee Audit Committee of the Board. bancassurance The distribution of insurance products through banks or other financial institutions. Bank BRI PT Bank Rakyat Indonesia (Persero) Tbk, a publicly listed bank established and existing under the laws of Indonesia. Board or Board of Directors The board of directors of the Company. BRI Life PT Asuransi BRI Life, a company in which the Group owns an equity interest of approximately 44 per cent as of the date of this announcement. Glossary 169
Page 171
Business Units FWD Group’s operations across Hong Kong SAR & Macau SAR, Thailand & Cambodia, Japan and the Expansion Markets. cede The transfer of all or part of a risk written by an insurer to a reinsurer. claim An occurrence that is the basis for submission and/or payment of a benefit under an insurance policy. Depending on the terms of the insurance policy, a claim may be covered, limited or excluded from coverage. commission A fee paid to a distribution partner by an insurance company for services rendered in connection with the sale or maintenance of an insurance product. Companies Ordinance The Companies Ordinance (Chapter 622 of the Laws of Hong Kong), as amended or supplemented from time to time. Company F W D G r o u p H o l d i n g s L i m i t e d 富 衛 集 團 有 限 公 司 , a n e x e m p t e d c o m p a n y incorporated under the laws of the Cayman Islands with limited liability on 18 March 2013. comprehensive tangible equity or CTE Non-IFRS measure, calculated as total equity of the Group attributable to shareholders of the Company plus contractual service margin (net of reinsurance, tax and non-controlling interests), minus intangible assets (net of non-controlling interests). constant exchange rate or CER Constant exchange rate used for the calculation of growth and is based on average exchange rates of relevant periods, other than for balance sheet items where growth as at the end of the current period over the end of the prior year is based on end of period exchange rates. contract boundary The measurement of a group of contracts includes all of the future cash flows within the boundary of each contract in the group. contractual service margin or CSM A component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the Group will recognise as it provides insurance contract services under the insurance contracts in the group. cost of capital or CoC Represents the cost of holding required capital that has been taken into account when measuring shareholders’ profit under traditional embedded value reporting. Conversion of Shares The consolidation, redesignation and reclassification of all Management Shares, Series P Conversion Shares and Series A, B-2 and B-3 Conversion Shares into 2,594,663,913 ordinary shares (which became 864,887,971 ordinary shares after the Share Consolidation) of the Company by operation of the laws of the Cayman Islands. CSM release rate CSM release rate is measured as CSM release divided by closing CSM balance (excluding CSM release and foreign exchange movement) and is shown on an annualised basis. Glossary 170
Page 172
customer Anyone who owns or receives value from insurance products and services. Customers are categorised as either individual customers or group scheme customers. Individual customers include policyholders (who are paying policy owners), the insured under life insurance policies, beneficiaries of the policies and active FWD MAX members, while group scheme customers include corporate policyholders (who are paying policy owners) and participating members. D2C Direct-to-customer. Director(s) The director(s) of the Company. embedded value or EV An actuarial method of measuring the consolidated value of shareholders’ interests in the existing business of an insurance company. Represents an estimate of the economic value of its life insurance business based on a particular set of assumptions as to future experience, excluding any economic value attributable to any future new business. embedded value equity or EV Equity The equity attributable to shareholders on an actuarial basis, reflecting the Group EV, adjusted to include goodwill and other intangible assets attributable to shareholders. It is presented on a net-of-financing basis. Financing for this purpose includes debt held by us and comprises borrowings and perpetual securities. embedded value operating profit or EV operating profit The change in EV over the relevant period, adjusted for movements relating to acquisitions & partnerships / discontinued businesses, economic variances and assumption changes, non-operating variances, capital movements, corporate adjustments, financing and foreign exchange movements. It comprises expected returns on EV, VNB, operating variances and assumption changes. Employee Share Purchase Plan FWD Employee Share Purchase Plan. ESPP Adoption Date The date on which the Employee Share Purchase Plan took effect, being the Listing Date. Equity Holders of the Company Shareholders of the Company and the holders of perpetual securities of the Company. Equity Incentive Plans The Share Option and RSU Plan, the Share Award Plan and the Employee Share Purchase Plan. ESR Economic value-based Solvency Regulation in Japan, which the assets and liabilities are evaluated at economic value and the capital requirement is measured based on the underlying risks involved. EV Disclosure “Supplementary embedded value information” section in this announcement. Glossary 171
Page 173
exclusive bancassurance partnerships or exclusive bancassurance arrangements Exclusive bancassurance partnerships in-market generally require bancassurance partners to distribute the Group’s products on either an exclusive or preferred basis to their customers across networks and jurisdictions specified under their contracts and subject to applicable laws and regulations. Exclusive bancassurance arrangements commonly include termination rights which may be triggered if specific, pre-defined conditions are met, for example upon material breaches by either party, in the event a party becomes a competitor, upon a change of control or in the event of force majeure; in addition, in limited cases exclusivity also applies to the Group over the partnership term. Expansion Markets Refers to FWD Group’s operations in Indonesia, Malaysia, the Philippines, Singapore, and Vietnam. expected credit losses or ECL The weighted average of credit losses with the respective risks of a default occurring as the weights. expense ratio Operating expenses expressed as a percentage of TWPI for the relevant period, representing the amounts attributable to Equity Holders of the Company. fair value through other comprehensive income or FVOCI For financial assets and liabilities measured at fair value through other comprehensive income, some changes in fair value are recognised in other comprehensive income. For details, please refer to note 18 in the interim condensed consolidated financial statements. fair value through profit or loss or FVTPL For financial assets and liabilities measured at fair value through profit or loss, changes in fair value are recognised in profit or loss as part of net investment result. For details, please refer to note 18 in the interim condensed consolidated financial statements. FGL FWD Group Limited, an exempted company incorporated under the laws of the Cayman Islands and registered as a non-Hong Kong company in Hong Kong SAR under Part 16 of the Companies Ordinance and a subsidiary of the Company. financial year Financial year ended or ending 31 December. first year premiums Premiums received in the first year of a recurring premium policy. FL FWD Limited, an exempted company incorporated under the laws of the Cayman Islands and registered as a non-Hong Kong company in Hong Kong SAR under Part 16 of the Companies Ordinance and a subsidiary of the Company. free surplus Excess of adjusted net worth, i.e. adjusted statutory net asset value attributable to shareholders, over the required capital. free surplus used to fund new business Free surplus used to fund new business refers to the change in free surplus arising from writing new business, including diversification benefit of adding new business, which in turn contributes to the overall free surplus balance. fulfilment cash flows An explicit, unbiased and probability-weighted estimate (i.e. expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the Group fulfils insurance contracts, including a risk adjustment for non-financial risk. Glossary 172
Page 174
FWD Bermuda Singapore FWD Life Insurance Company (Bermuda) Limited, Singapore Branch. FWD Cambodia FWD Life Insurance (Cambodia) Plc., a company incorporated under the laws of Cambodia and a subsidiary of the Company. FWD Group, Group, we, our or us The Company and its subsidiaries. FWD Group Financial Services FWD Group Financial Services Pte. Ltd., a company incorporated under the laws of Singapore and a subsidiary of the Company. FWD Group Management FWD Group Management Holdings Limited, a company incorporated under the laws of Hong Kong and a subsidiary of the Company. FWD Indonesia PT FWD Life Indonesia, a company incorporated under the laws of Indonesia, and a subsidiary of the Company, which was subsequently merged with PT FWD Insurance Indonesia (formerly known as PT Commonwealth Life), with the surviving entity being PT FWD Insurance Indonesia. FWD Life Assurance (Hong Kong) FWD Life Assurance Company (Hong Kong) Limited, a company incorporated under the laws of Hong Kong and a subsidiary of the Company. FWD Life (Bermuda) FWD Life Insurance Company (Bermuda) Limited, a company incorporated under the laws of Bermuda and registered as non-Hong Kong company in Hong Kong SAR under Part 16 of the Companies Ordinance and a subsidiary of the Company. FWD Life (Hong Kong) FWD Life (Hong Kong) Limited, a company incorporated under the laws of Hong Kong and a subsidiary of the Company. FWD Life Japan FWD Life Insurance Company, Limited (formerly known as FWD Fuji Life Insurance Company, Limited), a company incorporated under the laws of Japan and a subsidiary of the Company. FWD Life Malaysia FWD Insurance Berhad (formerly known as Gibraltar BSN Life Berhad), a company incorporated under the laws of Malaysia and a subsidiary of the Company. FWD Management Holdings FWD Management Holdings Limited, a company incorporated under the laws of Hong Kong and a subsidiary of the Company. FWD Philippines FWD Life Insurance Corporation, a company incorporated under the laws of the Philippines and a subsidiary of the Company. FWD Reinsurance FWD Reinsurance SPC, Ltd., an exempted company incorporated under the laws of the Cayman Islands and a subsidiary of the Company. FWD Singapore FWD Singapore Pte. Ltd., a company incorporated under the laws of Singapore and a subsidiary of the Company. FWD Takaful FWD Takaful Berhad, a company incorporated under the laws of Malaysia and a subsidiary of the Company. Glossary 173
Page 175
FWD Thailand F W D L i f e I n s u r a n c e P u b l i c C o m p a n y L i m i t e d ( บ ร ิ ษ ั ท เ อ ฟ ด ั บ บ ล ิ ว ด ี ป ร ะ ก ั น ช ี ว ิ ต จ ํ า ก ั ด ( ม ห า ช น ) ) , a company incorporated under the laws of Thailand and subsidiary of the Company. FWD Vietnam FWD Vietnam Life Insurance Company Limited, a company incorporated under the laws of Vietnam and a subsidiary of the Company. Global minimum tax or GMT Global Minimum Tax provision; please refer to the section headed “Management discussion and analysis — Risk & Capital — Regulatory and international developments” for details. GMCR Group minimum capital requirement. GPCR Group prescribed capital requirement. Group embedded value or Group EV The consolidated EV of FWD Group and is presented on a net-of-financing basis. Financing for this purpose includes debt held and comprises borrowings and perpetual securities. Group LCSM cover ratio (PCR basis) Ratio of group available capital to the Group’s GPCR. Group LCSM tier 1 cover ratio (MCR basis) Ratio of Group tier 1 available capital to the Group’s GMCR. Group Office FWD Group Financial Services, FWD Group Management and Valdimir. Group-wide Supervision or GWS Group-wide supervision framework introduced by the IA, which came into effect on 29 March 2021. HNW High net worth. HK$, Hong Kong dollar(s) or HKD Hong Kong dollars, the lawful currency of Hong Kong SAR. Hong Kong or Hong Kong SAR The Hong Kong Special Administrative Region of the PRC. HSBC Amanah Takaful HSBC Amanah Takaful (Malaysia) Berhad, a company incorporated under the laws of Malaysia and is a subsidiary of the Company, now rebranded as FWD Takaful. IA Hong Kong Insurance Authority, the primary regulator of the insurance industry in Hong Kong SAR. IAIG Internationally active insurance group. IAIS The International Association of Insurance Supervisors, which is the global standard setter for the insurance industry. ICS Insurance Capital Standard. Glossary 174
Page 176
IFA Independent financial adviser. IFRS International Financial Reporting Standards. insurance acquisition cash flows Cash flows arising from the costs of selling, underwriting and starting a group of insurance contracts (issued or expected to be issued) that are directly attributable to the portfolio of insurance contracts to which the group belongs. Such cash flows include cash flows that are not directly attributable to individual contracts or groups of insurance contracts within the portfolio. insurance contract services Services that the Group provides to a policyholder of an insurance contract, including: coverage for an insured event; for insurance contracts without direct participation features, the generation of an investment return for the policyholder, if applicable (investment-return service); and for insurance contracts with direct participation features, the management of underlying items on behalf of the policyholder (investment-related service). insurance finance reserve Insurance finance reserve comprises the cumulative insurance finance income or expenses recognised in other comprehensive income. Insurance (Group Capital) Rules The Insurance (Group Capital) Rules under the GWS framework. insurance revenue Insurance revenue arising from insurance contracts, excluding any investment components. insurance service expenses Insurance service expenses arising from insurance contracts, excluding any investment components. insurance service result Comprises insurance revenue, insurance service expenses and net expenses from reinsurance contracts held. investment component Amount that an insurance contract requires the Group to repay to a policyholder in all circumstances, regardless of whether an insured event occurs. Generally, for relevant contracts, surrender value would be determined as an investment component. investment experience Realised gains and losses, impairments and unrealised gains and losses on investments held at fair value through profit or loss. IPO Initial public offering of the Company and listing of the Shares on the main board of the Stock Exchange as described further in the Prospectus. IUL Indexed universal life. JFSA The Japan Financial Services Agency. JSPA Japan Yen single premium annuity. LCSM Local capital summation method. Glossary 175
Page 177
Leverage ratio Calculated as total borrowings divided by the sum of the total borrowings, total equity of the Group attributable to shareholders of the Company and non- controlling interests, and contractual service margin (net of reinsurance, tax and non-controlling interests), as of the end of the applicable period. Listing The listing of the Shares on the main board of the Stock Exchange. Listing Rules The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended or supplemented from time to time. loss component Loss component for onerous contracts. Macau or Macau SAR The Macau Special Administrative Region of the PRC. Management Shares Management shares in the share capital of the Company with a nominal value of US$0.01 each. MCR Minimum capital requirement. MDRT Million Dollar Round Table, a global professional trade association that recognises significant sales achievements while working to develop professional and ethical sales practices. Milliman Milliman Limited, an independent actuarial consultant. Model Code Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules, as amended from time to time. morbidity or morbidity rates Incidence rates and period of disability, varying by such parameters as age, gender and period since disability, used in pricing and computing liabilities for accident and health insurance. mortality or mortality rates Rate of death, varying by such parameters as age, gender and health, used in pricing and computing liabilities for life and annuity products, which contain mortality risks. na or N/A Not applicable. NB CSM margin NB CSM margin is NB CSM expressed as a percentage of APE for the relevant period, excluding products measured under premium allocation approach. net investment result Comprises investment return, net finance income or expenses from insurance contracts and reinsurance contracts held, and movement in investment contract liabilities. net profit/(loss) after tax Net profit/(loss) after tax as calculated and reported under the IFRS. net profit/(loss) after tax attributable to Equity Holders of the Company or NPAT Net profit/(loss) after tax attributable to Equity Holders of the Company, and is presented net of non-controlling interests. Glossary 176
Page 178
net underlying free surplus generation or Net UFSG Underlying free surplus generation, allowing for the free surplus used to fund new business. It excludes investment return variances, corporate centre expenses and other items such as the impact of acquisitions & partnerships / discontinued businesses, capital movements and impact of financing. new business contractual service margin or new business CSM or NB CSM Represents a component of the carrying amount of the asset or liability for a group of new insurance contracts issued during the relevant reporting period, representing the unearned profit that the Group will recognise as it provides insurance contract services under the insurance contracts in the Group. To enhance the understanding and comparability of the Group’s performance on an ongoing basis, the new business CSM consists of new business CSM under IFRS 17, adjusted to (i) exclude the impact of certain one-off new reinsurance contracts that cover in- force business, (ii) take into account the impact of the Group’s investment in BRI Life, which is accounted for as an investment in associate under IFRS, and (iii) exclude non-controlling interests. new business margin New business margin is defined as value of new business (VNB) expressed as a percentage of new business sales (APE) for the relevant period. new business sales New business sales volumes defined as APE. nm Not meaningful. O2O Collectively, online-to-online, online-to-offline and offline-to-online. offshore (i) With respect to FWD Hong Kong’s business, an offshore policy is any policy where the policyholder does not have or disclose a Hong Kong identity card number and an offshore customer is any customer who does not have or disclose a Hong Kong identity card; and (ii) with respect to FWD Macau’s business, an offshore policy is any policy where the policyholder is not a resident of Macau SAR and an offshore customer is any customer who is not a resident of Macau SAR. onshore (i) With respect to FWD Hong Kong’s business, an onshore policy is any policy where the policyholder has a Hong Kong identity card and an onshore customer is any customer who has a Hong Kong identity card, and (ii) with respect to FWD Macau’s business, any policy where the policyholder is a resident of Macau SAR and an onshore customer is any customer who is a resident of Macau SAR. operating entity EV Consolidated EV of operating entities. operating profit after tax Non-IFRS measure and consists of net profit/(loss) adjusted to exclude non- operating items which, in the Group’s view, should be disclosed separately to enable a meaningful understanding of the Group’s financial performance. operating profit after tax attributable to Equity Holders of the Company or OPAT Non-IFRS measure and refers to operating profit after tax attributable to Equity Holders of the Company, and is presented net of non-controlling interests. operating profit before tax or OPBT Non-IFRS measure and consists of profit/(loss) before tax adjusted to exclude non- operating items. Opinion Letter Independent report on the review of supplementary embedded value information. Glossary 177
Page 179
option A conditional right to subscribe for shares following vesting pursuant to and in accordance with the terms and conditions of the relevant Equity Incentive Plan and a letter of grant. Over-allotment Option The option granted by the Company as described in the Prospectus. participating funds Distinct portfolios where the policyholders have a contractual right to receive at the discretion of the insurer additional benefits based on factors such as the performance of the pool of assets held within the fund, as a supplement to any guaranteed benefits. The insurer may either have discretion as to the timing of the allocation of those benefits to participating policyholders or as to the timing and the amount of the additional benefits. participating products or participating business Contracts of insurance where the policyholders have a contractual right to receive, at the discretion of the insurer, additional benefits based on factors such as investment performance, as a supplement to any guaranteed benefits. PCR Prescribed capital requirement. per share (basic) Basic per share information is calculated based on the weighted average number of ordinary shares outstanding during the period or the number of ordinary shares outstanding as at the reporting date as adjusted for the effect of Share Consolidation. persistency The proportion of insurance policies remaining in-force from month to month, as measured by the number of policies. Plans The Share Option and RSU Plan, the Share Award Plan and the Employee Share Purchase Plan. policyholder and shareholder investments Investments other than those held to back unit-linked contracts. portfolio of insurance contracts Insurance contracts subject to similar risks and managed together. pps Percentage point. Pre-IPO Awards The share-based awards granted by the Group before the Listing, including under the Share Option and RSU Plan and the Share Award Plan. Pre-IPO Awards Shares Issuance the issuance of up to 25,659,330 Shares to the trustee of the Equity Incentive Plans after the completion of the Listing to satisfy the Pre-IPO Awards (other than in respect of the Pre-IPO Awards granted to Directors and a former director pursuant to the Share Option and RSU Plan) in accordance with their terms. premium allocation approach or PAA Simplified measurement of insurance contracts where the coverage period of each contract in the group of contracts is one year or less; or the Group reasonably expects that the resulting measurement of the liabilities for remaining coverage would not differ materially from the result of applying the accounting policies of contracts not measured under PAA. Glossary 178
Page 180
Prospectus The prospectus of the Company dated 26 June 2025. PSU Performance share unit. A restricted share unit which is subject to certain performance-based and other vesting conditions. PT Commonwealth Life PT Commonwealth Life, a company incorporated under the laws of Indonesia (now known as PT FWD Insurance Indonesia). PVNBP The present value of projected new business premiums. RBC or risk-based capital A method of measuring the minimum amount of capital appropriate for an insurance entity to support its overall business operations in consideration of its size and risk profile. reinsurance The practice whereby a reinsurer, in consideration of a premium paid to it, agrees to indemnify another party for part or all of the liabilities assumed by the reinsured party under an insurance contract, which the reinsured party has issued. renewal premiums Premiums receivable in subsequent years of a multi-year insurance policy. reserves Liability established to provide for future payments of claims and benefits to policyholders net of liability ceded to reinsurers. RSU A restricted share unit, being a contingent right to receive shares under an Equity Incentive Plan subject to certain time-based and other vesting conditions. SCB The Siam Commercial Bank Public Company Limited. SCB Life SCB Life Assurance Public Company Limited. Security Bank Security Bank Corporation. Series A/B-2/B-3 Conversion Shares Series A Conversion Shares, Series B-2 Conversion Shares and Series B-3 Conversion Shares. Series A Conversion Shares Series A conversion shares in the share capital of the Company with a nominal value of US$0.01 each. Series B-2 Conversion Shares Series B-2 conversion shares in the share capital of the Company with a nominal value of US$0.01 each. Series B-3 Conversion Shares Series B-3 conversion shares in the share capital of the Company with a nominal value of US$0.01 each. Series P Conversion Shares Series P conversion shares in the share capital of the Company with a nominal value of US$0.01 each. SFO The Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended or supplemented from time to time. Glossary 179
Page 181
Share Award Plan FWD Share Award Plan. Share Consolidation The consolidation of every three shares with a nominal value of US$0.01 each in the Company’s issued and unissued share capital into one share with a nominal value of US$0.03 each, the details of which are set out in the section headed “Appendix V – Statutory and General Information – Resolutions of the shareholders of our Company passed on 23 June 2025” in the Prospectus. Share Option and RSU Plan FWD Share Option and RSU Plan. Shareholder A holder of Shares. Shares Ordinary shares of the share capital of the Company with a nominal value of US$0.01 each prior to the Share Consolidation and with a nominal value of US$0.03 each subsequent to the Share Consolidation. single premiums Single premium policies of insurance are those that require only a single lump sum payment from the policyholder. SMR Solvency Margin Ratio in Japan, which is calculated pursuant to a set of factors and formula prescribed by JFSA. solvency The ability of an insurance company to satisfy its policyholder benefits and claims obligations. Southeast Asia For purposes of market rankings included in this announcement, Thailand, Cambodia, the Philippines, Indonesia, Singapore, Vietnam and Malaysia. Stock Exchange or HKEX The Stock Exchange of Hong Kong Limited. surrender The termination of a life insurance policy or annuity contract at the request of the policyholder after which the policyholder receives the cash surrender value, if any, of the contract. takaful Insurance that is compliant with Islamic principles. total weighted premium income or TWPI Non-IFRS measure and consists of 10 per cent of single premiums, 100 per cent of first year premiums and 100 per cent of renewal premiums across all business lines, before reinsurance ceded. TWPI represents the amount attributable to the Equity Holders of the Company. It provides an indicative volume measure of transactions undertaken in the relevant period that have the potential to generate profits for the shareholders. Traditional embedded value or “TEV” Methodology Represents deterministic discounted cash flow methodology to calculate EV and VNB. Trustee The professional trustee appointed by the Company in accordance with the Plans Glossary 180
Page 182
underlying free surplus generation or UFSG Represents the free surplus generated by the Group over the period, adjusted to exclude new business funding and certain non-recurring items. It excludes free surplus used to fund new business, investment return variances, corporate centre expenses and other items, acquisitions & partnerships / discontinued business, capital movements and the impact of financing, but includes methodology updates relating to accounting changes. underwriting The process of examining, accepting or rejecting insurance risks, and classifying those accepted, in order to charge an appropriate premium for each accepted risk. US$, U.S. dollars, US dollar(s) or USD US dollars, the lawful currency of the United States of America. U.S. or United States the United States of America, its territories and possessions, any state of the United States and the District of Columbia. U.S. Securities Act The United States Securities Act of 1933, as amended. Valdimir Valdimir Pte. Ltd., a company incorporated under the laws of Singapore and a subsidiary of the Company. value of in-force business or VIF Present value of future net-of-tax statutory profits emerging in the future from the current in-force business less cost of capital required to support the in-force business, with adjustment on future net-of-tax unallocated Group Office expenses and global minimum tax. value of new business or VNB Present value, measured at point of sale, of future net-of-tax profits on a local statutory basis less the corresponding cost of capital. VNB is calculated quarterly, based on assumptions applicable at the start of each quarter. variable fee approach VFA Modifies the general measurement model in IFRS 17 to reflect the nature of the income to the insurer is a variable fee. VCB or Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam. References to “FWD Group”, “Group”, “ we”, “our” or “us” are to FWD Group Holdings Limited and its consolidated subsidiaries. Throughout this document, in the context of our reportable segments, Hong Kong & Macau refers to operations in the Hong Kong Special Administrative Region and the Macau Special Administrative Region; Thailand & Cambodia refers to operations in Thailand and Cambodia; Japan refers to the operation in Japan and the reinsurance operation in the Cayman Islands; and Expansion Markets refer to operations in Indonesia, Malaysia, the Philippines, Singapore, and Vietnam. All growth rates and commentaries in this announcement are provided on a constant exchange rate basis, unless otherwise stated. Certain amounts and percentage figures included in this announcement have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables and statements may not be an arithmetic aggregation of the figures preceding them. Glossary 181