2013 Performance Shows Value of New Business Up 25 Per Cent
Hong Kong, 21 February 2014 – The Board of Directors of AIA Group Limited (stock code: 1299) is pleased to announce excellent results for the year ended 30 November 2013.
The highlights of AIA’s performance in 2013 include:
Record value of new business (VONB) – AIA’s key performance measure
- 25 per cent increase in VONB to US$1,490 million
- 24 per cent increase in annualised new premium (ANP) to US$3,341 million
- VONB margin increased to 44.1 per cent
Successful focus on sustainable value creation
- 14 per cent growth in embedded value (EV) operating profit to US$3,975 million
- EV Equity up 10 per cent to US$34.9 billion, including goodwill and other intangible assets
Strong IFRS operating profit and capital position
- IFRS operating profit after tax (OPAT) up 16 per cent to US$2,504 million
- Net profit of US$2,822 million including mark-to-market valuation of equity investments
- IFRS operating earnings per share up 16 per cent to 20.91 US cents
- Solvency ratio increased by 80 pps to 433 per cent on the Hong Kong ICO basis
The Board of Directors has recommended a final dividend of 28.62 Hong Kong cents per share, subject to shareholders’ approval. This brings the total dividend for 2013 to 42.55 Hong Kong cents per share, representing an increase of 15 per cent compared with 2012.
Commenting on the results, Mark Tucker, AIA’s Group Chief Executive and President, said:
“AIA had an excellent year in 2013. The strength of our financial results demonstrates our continuing growth momentum across all of our key performance metrics, including an increase in value of new business of 25 per cent. Our ability to achieve year-on-year growth of this magnitude demonstrates the power of AIA’s franchise, the resilience of our operating model, the consistent execution of our well-established growth strategy and the advantages of our exclusive focus on the Asia-Pacific region.
“Asia continues to provide one of the most attractive and resilient life insurance markets in the world. The demographic drivers in the region coupled with low levels of social welfare provision and the rapid expansion in the numbers of middle- and high-income households provide enormous growth opportunities and all of this is happening on an unprecedented scale.
“AIA is exceptionally well-positioned to capitalise on these opportunities given the quality and scale of our distribution platform, our depth of experience derived from our long history in Asia and our unrivalled financial strength. Our focus remains on the provision of high-quality products and services to meet the rapidly-increasing regular savings and protection needs of our customers throughout the region.
“The excellent results we are announcing today demonstrate once again the substantial progress we have made in delivering significant increases in long-term value for our shareholders. The Board has recommended a 16 per cent increase in our final dividend reflecting our strong performance and our prudent, sustainable and progressive dividend policy and we remain confident in AIA’s outstanding prospects for 2014 and beyond.”