HONG KONG, 24 August 2018 – AIA Group Limited (“AIA”; or the “Company”; stock code: 1299) is pleased to announce its 2018 interim results1 .
In respect of the first six months of 2018, AIA has delivered double-digit growth across our main financial metrics, including very strong growth in value of new business (VONB) of 17 per cent on a constant exchange rate basis and 22 per cent on an actual exchange rate basis, compared with the corresponding six-month period ended 30 June 2017.
Highlights are shown on a constant exchange rate basis below:
Very strong growth in value of new business
- 17 per cent growth in VONB to US$1,954 million
- 24 per cent growth in VONB, excluding the retail IFA channel in our Hong Kong business which had an exceptional performance in the first half of 2017
- Annualised new premiums (ANP) increased by 9 per cent to US$3,252 million
- VONB margin up 4.4 pps to 59.5 per cent
Continued growth in operating profit
- IFRS operating profit after tax (OPAT) up by 14 per cent to US$2,653 million
- Embedded value (EV) operating profit increased by 19 per cent to US$4,152 million
- Operating return on EV (operating ROEV) up by 70 bps to 17.0 per cent
Robust cash flow and resilient capital position
- EV Equity of US$53.6 billion; EV of US$52.0 billion, up US$1.2 billion from 31 December 2017
- Underlying free surplus generation of US$2,497 million, up 11 per cent on a comparable basis
- Free surplus of US$13.7 billion
- Solvency ratio for AIA Co., our principal operating company, of 458 per cent on the HKIO basis
Significant increase in interim dividend
- 14 per cent increase in interim dividend to 29.20 Hong Kong cents per share
Ng Keng Hooi, AIA’s Group Chief Executive and President, said:
“AIA achieved a very strong set of results in the first half of 2018 with VONB growth of 17 per cent to US$1,954 million as well as 14 per cent growth in IFRS operating profit. VONB for the period was up 24 per cent when excluding the retail IFA channel in our Hong Kong business which delivered an exceptional growth in the first half of 2017. These results are underpinned by the continued execution of our proven growth strategy and the scale, quality and breadth of AIA’s exceptional businesses across the Asia-Pacific region.
“The Board has declared a 14 per cent increase in the interim dividend for 2018, reflecting the strength of AIA’s financial results as well as our confidence in the outlook for the Group. This is in line with our prudent, sustainable and progressive dividend policy.
“AIA continues to hold a uniquely advantaged position stemming from the significant competitive advantages we have created over our long history in Asia. The quality of our results comes from our diverse and balanced platforms – across distribution, product and geography. Our clear strategy continues to work well as our experienced team of outstanding people collaborate to harness the enormous growth opportunities that the region presents.
“We remain confident that we will continue to execute our strategic priorities to realise AIA’s full potential as we help millions of people to live healthier, longer, better lives.”
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AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai almost a century ago in 1919. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$221 billion as of 30 June 2018.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of 32 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
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1The Company announced the Group’s unaudited consolidated results for the seven months ended 30 June 2018 today. In February 2018, the Board resolved to change the Company’s financial year-end date from 30 November to 31 December. Accordingly, the current financial period-end date of the Company is 31 December 2018. The interim condensed consolidated financial statements adopting the new year-end date is for the seven months ended 30 June 2018 with the comparative figures prepared based on the six months ended 31 May 2017. For details, please visit www.aia.com for the Company’s 2018 Interim Results Announcement published today.