AIA delivers ‘excellent growth’ in first half of 2023

The Board of AIA Group Limited (the “Company”) announced the Group’s financial results for the six months ended June 30, 2023.Growth rates are shown on a constant exchange rate basis:

New business performance

Value of new business (VONB) grew by 37 per cent to US$2,029 million Annualised new premiums (ANP) increased by 49 per cent to US$3,984 million All reportable segments and all distribution channels delivered positive VONB growth

Earnings and capital

Embedded value (EV) operating profit of US$4,423 million, up 20 per cent per share Operating return on EV (ROEV) of 13.3 per cent, up from 9.4 per cent in full year 2022 Underlying free surplus generation (UFSG) of US$3,288 million, up 10 per cent per share Operating profit after tax (OPAT) of US$3,272 million, up 4 per cent per share EV Equity of US$70.6 billion after returning US$3.6 billion in dividend and share buy-back Free surplus of US$16.3 billion at 30 June 2023 Very strong Group LCSM coverage ratio of 260 per cent on the PCR basis(2) Interim dividend and share buy-back programme Interim dividend of 42.29 Hong Kong cents per share, up 5 per cent

US$2.0 billion returned to shareholders through the share buy-back programme in the first half of 2023 Lee Yuan Siong, AIA’s Group Chief Executive and President, said:

“AIA has delivered excellent new business results with VONB up 37 per cent to over US$2 billion for the first half of 2023. We also reported growth in our other key financial metrics, namely OPAT, EV operating profit, UFSG and EV Equity.

“We have seen our business return to strong and sustainable growth in the first half of 2023 and all of our reportable segments and all distribution channels delivered higher VONB. With the pandemic disruption behind us, the strength of AIA’s unrivalled distribution platform across Asia has powered a return to very strong new business momentum, including double-digit VONB growth from AIA China, our combined ASEAN business and Tata AIA Life, our joint venture in India. AIA Hong Kong more than doubled VONB compared to the first half of 2022, driven by substantial business from Mainland Chinese visitors (MCV).

“Our growing high-quality in-force portfolio and consistent financial discipline supported an increase in both OPAT and UFSG. We returned a total of US$3.6 billion to shareholders in the first half of 2023 through the dividend and our ongoing share buy-back programme, which has enhanced shareholder returns and significantly benefited OPAT and UFSG per share.

EV Equity of US$70.6 billion was up 6 per cent over the first half of 2023 before dividend and share buy-back. AIA’s capital position remained very strong with free surplus of US$16.3 billion and a Group LCSM coverage ratio(2) of 260 per cent at 30 June 2023.

“The Board has declared a 5 per cent increase in the interim dividend to 42.29 Hong Kong cents per share. This follows AIA’s established prudent, sustainable and progressive dividend policy, allowing for future growth opportunities and the financial flexibility of the Group.”