AIA Delivers An Excellent Performance In 2018

HONG KONG, 15 March 2019 – AIA Group Limited (“AIA”; or the “Company”; stock code: 1299) delivered excellent operating performance with double-digit growth across our main financial metrics for the twelve months¹ ended 31 December 2018, including very strong growth in value of new business (VONB) of 22 per cent on a constant exchange rate basis, compared with the corresponding twelve-month period ended 31 December 2017.

Growth rates are shown on a constant exchange rate basis below:

Very strong growth in value of new business

• 22 per cent growth in VONB to US$3,955 million
• Annualised new premiums (ANP) increased by 15 per cent to US$6,510 million
• VONB margin up 3.7 pps to 60.0 per cent

Strong operating profit generation

• Operating profit after tax (OPAT) up by 13 per cent to US$5,298 million
• Embedded value (EV) operating profit increased by 23 per cent to US$8,278 million
• Operating return on EV (operating ROEV) up by 110 bps to 16.3 per cent

Robust cash flow and resilient capital position

• EV Equity of US$56.2 billion; EV of US$54.5 billion, up US$3.7 billion
• Underlying free surplus generation of US$4,945 million, up 13 per cent on a comparable basis
• Free surplus of US$14.8 billion
• Net remittances of US$2.8 billion
• Solvency ratio for AIA Company Limited (AIA Co.) of 421 per cent on the HKIO basis

Strong increase in recommended final dividend

• 14 per cent growth in final dividend to 84.80 Hong Kong cents per share
• Total dividend (excluding special dividend) up 14 per cent to HK$1.14 per share
• A special dividend of 9.50 Hong Kong cents per share

Ng Keng Hooi, AIA’s Group Chief Executive and President, said:

“AIA has once again delivered an excellent performance with double-digit growth across our main financial metrics in 2018. Value of new business increased by 22 per cent to reach a new record of US$3,955 million. We also achieved strong growth of 13 per cent in both operating profit after tax and underlying free surplus generation. These very strong results were achieved against a backdrop of economic uncertainty and financial market volatility.

1The Company announced the Group’s audited consolidated results for the thirteen-month period ended 31 December 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 2018 consolidated financial statements adopting the new year-end date is for the thirteen-month period ended 31 December 2018 with the comparative figures prepared based on the twelve-month period ended 30 November 2017. For details, please visit www.aia.com for the Company’s 2018 Annual Results Announcement published today.

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About AIA

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 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$230 billion as of 31 December 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 more than 33 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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