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AIA Delivers excellent results in H1 2024
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T
he Board of AIA Group Limited (the “Company”) is pleased to announce the Group’s financial results for the six months ended 30 June 2024. Growth rates are shown on a constant exchange rate basis:
New business performance
- Value of new business (VONB) up 25 per cent to a record high of US$ million
- Sales up 17 per cent to US$4,546 million of annualised new premiums (ANP)
- New business profitability increased with VONB margin up 3.3 (pps) to 53.9 per cent
Embedded Value
- Embedded value (EV) operating profit of US$5,350 million, up 29 per cent per share
- Operating ROEV of 16.5 per cent, increased from 12.9 per cent in full year 2023
- Positive operating and investment variances in the first half
- EV Equity of US$70.9 billion after capital returns to shareholders, up 5 per cent per share over the first half
IFRS earnings
- Operating profit after tax (OPAT) of US$3,386 million, up 10 per cent per share
- Operating ROE of 15.3 per cent, up from 13.5 per cent in full year 2023
- OPAT per share CAGR target of 9 to 11 per cent from 2023 to 2026
Free Surplus Generation
- Underlying free surplus generation (UFSG) of US$3,391 million, up 10 per cent per share
- Net free surplus generation (Net FSG)(3) of US$2,243 million after reinvestment in organic new business
- Shareholder capital ratio(4) of 242 per cent on a pro forma basis
Dividend and share buy-backs
- US$3.4 billion returned to shareholders in the first half through dividend and share buy-backs
- Additional US$2.0 billion to the share buy-back programme announced in April, bringing the total to US$12.0 billion
- Interim dividend of 44.50 Hong Kong cents per share, up 5.2 per cent
Lee Yuan Siong, Chief Executive and President of AIA Group, said:
“AIA has delivered excellent results in the first half of 2024. We have achieved record new business profits, significant earnings growth, strong free surplus generation and returned substantial capital to shareholders. We are also announcing an OPAT per share CAGR target of 9 to 11 per cent from 2023 to 2026. Today’s headline figures, with VONB up by 25 per cent, are a direct result of AIA’s ability to deliver successive layers of profitable new business that compound over time to sustain growth in earnings and cash generation.
“In the first six months of 2024, we returned US$3.4 billion to shareholders through dividend and share buy-backs. The Board announced an increase to our existing share buy-back programme by US$2.0 billion in April, bringing the total to US$12.0 billion. Today, the Board has declared a further 5.2 per cent increase in the interim dividend to 44.50 Hong Kong cents per share, reflecting AIA’s very strong financial position and confidence in our future operational and financial delivery.
“AIA is exceptionally well positioned to leverage the long-term structural growth opportunities in Asia, the most attractive region in the world for life and health insurance. I am confident that, through the consistent execution of our clear and ambitious strategy, we will continue to build on AIA’s substantial competitive advantages to capture the opportunities ahead of us to generate long-term sustainable shareholder value.”
