Value of New Business Increases 23 Per Cent
Hong Kong, 25 July 2014 – The Board of Directors of AIA Group Limited (stock code: 1299) is pleased to announce that AIA delivered another excellent set of results for the six months ended 31 May 2014.
The main highlights of the results are:
Record value of new business (VONB)
- 23 per cent growth in VONB to US$792 million • Annualised new premium (ANP) up 11 per cent to US$1,690 million
- 4.6 pps increase in VONB margin to 46.2 per cent
Strong and sustainable value creation
- 11 per cent growth in embedded value (EV) operating profit to US$2,119 million
- US$2 billion increase in EV Equity to US$36.9 billion, up 6 per cent over the first half
Outstanding IFRS operating profit growth and robust capital position
- 15 per cent growth in IFRS operating profit after tax (OPAT) to US$1,457 million
- Solvency ratio for AIA Co. increased by 15 pps to 448 per cent on the HKICO basis
The Board of Directors has declared an interim dividend of 16.00 Hong Kong cents per share, representing an increase of 15 per cent over the previous year and reflecting our strong performance and our prudent, sustainable and progressive dividend policy.
Commenting on the results, Mark Tucker, AIA’s Group Chief Executive and President, said:
“AIA has delivered another excellent set of financial results in the first half of 2014. We have achieved significant growth across all our key performance metrics including VONB up 23 per cent. Our strong performance is the direct result of the consistent execution of our growth strategy, the prudent management of our balance sheet and the resilience of our portfolio of life insurance operations in diversified markets across the Asia-Pacific region.
“The Asia-Pacific region offers one of the most attractive and resilient life insurance markets in the world. A young and upwardly mobile population is driving rapid urbanisation and significant growth in disposable incomes across the region. Combined with low levels of social welfare support and existing private provision, these long-term structural trends provide the foundation for the large and growing need for AIA’s products and services in the region.
“AIA remains exceptionally well-placed to benefit from these structural drivers through the quality and scale of our distribution, our trusted brand position established through our long history in Asia, the breadth of our product range and our financial strength. The execution of our clear strategy and rigorous financial discipline will enable us to continue to deliver large-scale profitable growth at attractive returns and we look forward to continuing to deliver value to our customers and for our shareholders.”