Hong Kong, 10 March 2023 – The Board of AIA Group Limited (the “Company”; stock code: 1299) is pleased to announce the Group’s financial results for the year ended 31 December 2022.

 

Growth rates are shown on a constant exchange rate basis:

 

• Value of new business (VONB) was US$3,092 million for the full-year 2022
• VONB grew by 6 per cent in the second half as the effects of the initial Omicron wave subsided
• AIA China delivered positive VONB growth in the second half and into the first two months of 2023
• All five of the largest operating segments delivered positive VONB growth in the second half

 

“Our resilient financial results in an unprecedented market environment demonstrate the strengths of AIA’s robust operating model, which is built on our differentiated distribution and personalised propositions. New business momentum improved strongly in the second half of 2022 as the effects of the initial Omicron wave subsided and normal activities resumed. While VONB of US$3,092 million was lower by 5 per cent for the full year, we delivered 6 per cent growth in the second half with all five of our largest operating segments achieving positive VONB growth.

 

“Our consistent financial discipline and focus on growing AIA’s high-quality in-force business supported an increase in both OPAT and UFSG⁽¹⁾. The Group’s financial position remained very strong despite significant capital market volatility in 2022, with free surplus increasing to US$23.7 billion before capital returns to shareholders and a Group LCSM cover ratio⁽²⁾ of 283 per cent. EV Equity increased by 6 per cent in 2022 to US$77.0 billion before the return of US$5.8 billion to shareholders through the share buy-back programme and dividends.

 

“The Board has recommended a final dividend of 113.40 Hong Kong cents per share which brings the total dividend to 153.68 Hong Kong cents per share, up 5.3 per cent. This follows AIA’s established prudent, sustainable and progressive dividend policy, allowing for future growth opportunities and the financial flexibility of the Group.

 

“AIA China returned to positive growth in the second half of 2022 with VONB up by 3 per cent. VONB was lower in the first half compared with the record result in 2021, as most of our geographies were subject to stringent pandemic movement restrictions. In the second half, VONB recovered strongly with double-digit year-on-year growth up to the end of November before the rapid increase in COVID-19 infections in December disrupted new business sales activities. Following the reopening of Mainland China, we have seen our new business momentum recover swiftly and return to positive VONB growth in the first two months of 2023.

 

“We continue to execute AIA China’s expansion strategy, capturing new growth opportunities by replicating our high-quality differentiated Premier Agency in new geographies and deepening our presence within our existing footprint. We made excellent progress with 50 per cent growth in agency VONB and 31 per cent increase in the number of active agents in Tianjin, Shijiazhuang, Sichuan and Hubei. In January 2022, we launched an additional operation in Hubei and we are also at an advanced stage in preparing for our new provincial branch in Henan. AIA China’s new bancassurance partnership with the Postal Savings Bank of China continued to make good progress.

 

“AIA Hong Kong recorded an increase in VONB of 4 per cent in 2022, supported by growth in both our agency and partnership channels. Our Macau branch continued to benefit from the resumption of the Individual Visit Scheme with Mainland China. VONB from sales to Mainland Chinese visitors tripled in 2022, accounting for just over 10 per cent of total VONB of AIA Hong Kong for the year, and strong momentum has continued into the first two months of 2023.

 

“AIA Thailand delivered 5 per cent growth in VONB for the full year, supported by 19 per cent growth in the second half of 2022. We saw higher sales activity levels in both agency and bancassurance channels as new business momentum returned in the second half. Our agency remained the market leader in 2022 and we achieved very strong recruitment, contributing to an increase in the number of active agents compared with 2021.

 

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 – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR⁽⁴⁾, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR⁽⁵⁾, and a 49 per cent joint venture in India.

 

The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$303 billion as of 31 December 2022..

 

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, AIA serves the holders of more than 41 million individual policies and over 17 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”).