AIA reports financial results for first half of 2022

New business performance Value of new business (VONB) reduced by 13 per cent to US$1,536 million Strong month-on-month improvement in the second quarter with positive VONB growth in June Robust annualised new premiums (ANP) of US$2,778 million, a decline of 7 per cent

VONB margin of 55.2 per cent

AIA China returned to VONB growth in July as movement restrictions eased

Earnings and capital

Free surplus increased by US$3.6 billion to US$20.6 billion

Underlying free surplus generation (UFSG) up 5 per cent(1) to US$3,190 million

Operating profit after tax (OPAT) up 4 per cent to US$3,223 million

Very strong Group LCSM cover ratio(2) of 277 per cent on the new PCR basis and 567 per cent on the previously reported MCR basis

EV Equity of US$72.3 billion after returning US$3.0 billion to shareholders through the share buy-back programme and dividend

Shareholders’ allocated equity of US$46.8 billion

Interim dividend

Interim dividend increased by 6 per cent to 40.28 Hong Kong cents per share

Lee Yuan Siong, AIA’s Group Chief Executive and President, said:

“AIA has delivered a resilient performance in the first half of 2022. Sales momentum in the second quarter improved as the temporary disruption caused by the initial outbreak of the Omicron variant declined and we delivered positive VONB growth in June.

“Our growing high-quality in-force portfolio supported an increase in both OPAT and UFSG(1). The Group’s financial position remained very strong with free surplus increasing to US$20.6 billion and a Group LCSM cover ratio(2) of 277 per cent despite the significant stress in capital markets. EV Equity was US$72.3 billion, representing an increase of 3 per cent in the first half before the return of US$3.0 billion to shareholders through our share buy-back programme and payment of the 2021 final dividend.