AIA delivers another excellent set of results

The Board of Directors of AIA Group Ltd., last week announced what it called as another excellent set of results for the year ended 30 November 2016. 

It reported excellent growth in value of new business (VONB) with 28% growth in VONB to $2,750 million, 31% increase in annualised new premiums (ANP) to $5,123 million and a VONB margin of 52.8%.

AIA reported an IFRS operating profit after tax (OPAT) up 15% to $3,981 million, an IFRS operating earnings per share up 15% to 33.25 US cents, and an Embedded Value (EV) operating profit up 19% to $5,887 million. Operating return on EV (ROEV) was increased to 15.4%.

Reflecting robust cash flow and resilient capital position, AIA reported an underlying free surplus generation of $4,024 million, up 11%, free surplus of $9.8 billion, EV Equity of $43.7 billion and EV of $42.1 billion, up 12%. Net remittances amounted to $2.0 billion and Solvency ratio for AIA principal operating company, AIA Co., of 404% on the HKICO basis.

AIA has recommended a final dividend of 63.75 Hong Kong cents per share, up 25%.Total dividend of 85.65 Hong Kong cents per share was an increase of 23%.

AIA’s Group Chief Executive and President Mark Tucker said: “AIA has delivered an excellent set of results in 2016. We have achieved record new business profits, significant earnings growth, strong free surplus generation and a step up in shareholder dividends. Today’s headline figures, with VONB up by 28%, and our consistent track record of year-on-year profitable growth are the direct result of the strong fundamental growth drivers in the Asia-Pacific region, our highly-diversified and resilient business model and our commitment to building a high-quality, sustainable business for the long term.

“The Board has recommended a further step up of 25% in the 2016 final dividend from our higher base in 2015 to 63.75 Hong Kong cents per share. This dividend uplift reflects our excellent financial performance and our confidence in the future outlook for the Group.

“AIA has been in Asia for close to a century. The powerful structural economic, social and demographic changes taking place across the region present an unparalleled opportunity for the Asian life insurance industry and one which AIA, with our distribution reach, trusted brand, financial strength and people capabilities, is in an advantaged position to capture. “We have made an excellent start to 2017 with strong value of new business growth in the first two months of our financial year. We have clear strategic priorities in place and are committed to building on our strong competitive advantages by helping our customers meet their long-term financial needs through our products and services. This provides us with a strong foundation to deliver profitable growth and long-term value for our shareholders, as we help our customers live longer, healthier, better lives and plan for a brighter future.”