AIA announces very strong financial results for 2021

AIA Group Ltd. has announced very strong financial results for 2021 with value of new business (VONB) up 18% to $ 3,366 million with growth in all reportable segments.

Its annualised new premiums (ANP) grew 6% to $ 5,647 million whilst VONB margin was up 6.3 pps to 59.3%.

Underlying free surplus generation (UFSG) was up 8% to $ 6,451 million and Embedded value (EV) operating profit grew by 7% to $ 7,896 million.

Operating profit after tax (OPAT) increased by 6% to $ 6,409 million and Free surplus was up $ 3.6 billion to $ 17.0 billion whilst it was $ 24.8 billion on a pro forma basis.

Group Chief Executive and President Lee Yuan Siong said: “AIA has delivered very strong results in 2021 with VONB up by 18% and growth in all of our key financial metrics including a new high for EV Equity of $ 75.0 billion. VONB for the Group outside Hong Kong exceeded pre-pandemic levels and all of our reportable  segments grew VONB year-on-year. Our financial position continues to be very strong with a pro  forma free surplus of $ 24.8 billion.”

“Our focus on profitable growth continued to deliver attractive returns and, since our IPO, our new business investment of $ 16.2 billion has increased the value of future distributable earnings for shareholders by $ 44.5 billion. 

“In 2021, we also committed $ 2.4 billion to additional growth opportunities, further increasing our exposure to the highly-attractive Chinese life insurance market through our investment in China Post Life Insurance Co. Ltd. (China Post Life) and extending our distribution by partnering with The Bank of East Asia Ltd. (BEA). In addition, we are investing up to $ 1.5 billion by 2023 as we transform our use of technology, digital and analytics across the Group to support our future growth ambitions,” he said.  

AIA China was again the largest contributor to the Group’s VONB and delivered a 10% increase driven by a very strong double-digit increase in agent productivity in 2021.

In 2021, AIA accelerated the delivery of its key strategic priorities as it transformed AIA into a  simpler, faster, more connected organisation.

“Rapid adoption and scaling of technology, digital and  analytics throughout the Group has been critical in our successful navigation through the pandemic and enables us to create significant new growth opportunities through digitally-led models, drive higher productivity of our distribution channels and deliver greater efficiency and improved customer experience,” he said.

He described investment in a 24.99% equity stake of China Post Life, a leading bank-affiliated life insurer focused on bringing financial protection to the mass and emerging mass-affluent segments in Mainland China, as a a significant step for AIA and further increases AIA’s exposure to the highly-attractive Chinese life insurance market.

In February, AIA announced the establishment of an innovative digital Health InsurTech and services business called Amplify Health, in partnership with Discovery Ltd. (Discovery), the long-standing partner in AIA Vitality.

“There are tremendous opportunities for Amplify Health with  total healthcare expenditure in our markets expected to exceed $ 4 trillion in 2030. We are  bringing together the best of both companies – AIA’s strong brand, unrivalled distribution platform and execution capabilities with Discovery’s proven technology, and more than three decades of  intellectual property and health expertise. 

“Our vision is for Amplify Health to transform how  individuals, corporates, payors and providers experience and manage health insurance and healthcare delivery, improving the health and wellness outcomes of patients and communities across Asia,” Group CEO and President said.