HONG KONG, 28 July 2017 – The Board of Directors of AIA Group Limited (stock code: 1299) is pleased to announce the Group’s unaudited consolidated results for the six months ended 31 May 2017. Highlights are shown on a constant exchange rate basis:
Record growth in value of new business (VONB)
- 42 per cent growth in VONB to US$1,753 million
- 37 per cent increase in annualised new premiums (ANP) to US$3,196 million
- VONB margin up 1.8 pps to 54.2 per cent
Strong operating profit generation and increased returns
- IFRS operating profit after tax (OPAT) up 16 per cent to US$2,262 million
- IFRS operating earnings per share up 16 per cent to 18.87 US cents
- Embedded value (EV) operating profit up 21 per cent to US$3,456 million
- Operating return on EV (operating ROEV) increased to 17.1 per cent
Robust cash flow and resilient capital position
- Underlying free surplus generation of US$2,307 million, up 13 per cent
- Free surplus of US$11.0 billion
- EV Equity of US$47.8 billion; EV of US$46.3 billion, up US$4.2 billion in the first half
- Solvency ratio for AIA Co., our principal operating company, of 427 per cent on the HKIO basis
Significant increase in interim dividend
- 17 per cent increase in interim dividend to 25.62 Hong Kong cents per share
Ng Keng Hooi, AIA’s Group Chief Executive and President, commenting on the results, said:
“AIA has delivered an excellent set of results in the first half of 2017 with record VONB growth of 42 per cent to US$1,753 million. As a result of our financial discipline and commitment to delivering high-quality, sustainable growth, we have also achieved significant increases in IFRS operating profit and free surplus generation. Our performance is a clear reflection of the strength of AIA’s businesses and the consistent execution of our strategy."
“The Board has declared a 17 per cent increase in the interim dividend for 2017. This reflects AIA’s excellent financial results in the first half as well as our confidence in the outlook for the Group."
“AIA has significant competitive advantages created over our long history in Asia. We have a clear strategy that is working well and is fully aligned with the substantial opportunities presented by the extraordinary social changes and substantial economic growth taking place across the region. Our strong track record of value creation is the direct outcome of our many experienced teams working collectively to deliver our strategic priorities. We will continue to challenge ourselves and our strategy to ensure we capture the many significant opportunities that the region presents – well into the future."
“Today’s announcement is the first time I have reported our financial results since I assumed the role of Group Chief Executive at the beginning of June and I am delighted that we have delivered a very strong performance. AIA is an exceptional company with outstanding people and a unique franchise. I look to the future with great enthusiasm as we continue to realise AIA’s full potential in Asia and generate sustainable value for our customers and shareholders.”
Commenting on the results Chief Executive Officer AIA Australia and New Zealand, Damien Mu, said:
“AIA Group has continued to perform well in 2017, and we at AIA Australia and AIA New Zealand are proud to have contributed to this success. We continue to focus on delivering leading propositions for the benefit of our customers and partners. With the recent launch of a new health insurance brand myOwn, the continued success of AIA Vitality, and the launch of our Term Level premiums structure, AIA is taking positive steps towards helping champion the cause of Australia and New Zealand becoming the healthiest nations.”