Value of New Business Up 24 Per Cent Strong Earnings Growth and Increased Dividend
Hong Kong, 26 February 2015 – The Board of Directors of AIA Group Limited (stock code: 1299) is pleased to announce that AIA has achieved another excellent set of results for the year ended 30 November 2014.
The highlights of AIA’s performance in 2014 include:
Record value of new business (VONB)
- 24 per cent growth in VONB to US$1,845 million
- Annualised new premium (ANP) of US$3,700 million, up 11 per cent
- 5.0 pps increase in VONB margin to 49.1 per cent
Strong IFRS operating profit growth
- 16 per cent growth in IFRS operating profit after tax (OPAT) to US$2,910 million
- IFRS operating earnings per share up 16 per cent to 24.31 US cents
- Net profit up 22 per cent to US$3,450 million
Sustainable value creation and robust capital position
- 14 per cent growth in embedded value (EV) operating profit to US$4,535 million
- US$4.2 billion increase in EV Equity to US$39.0 billion, up 12 per cent
- Solvency ratio for AIA Co. of 427 per cent on the HKICO basis
The Board of Directors has recommended a final dividend increase of 19 per cent to 34.00 Hong Kong cents per share, subject to shareholders’ approval. This brings the total dividend for 2014 to 50.00 Hong Kong cents per share.
Mark Tucker, AIA’s Group Chief Executive and President, said:
“AIA achieved another excellent set of results in 2014, delivering a record VONB of US$1,845 million, up 24 per cent from 2013. Our performance is a clear reflection of the strength of AIA’s business model, the determined execution of our proven growth strategy and our position as the leading insurer exclusively focused on the Asia-Pacific region. The consistency in our performance year on year, with each of our key financial metrics reaching new highs, demonstrates AIA’s potential for future value creation.
“Asia is one of the world’s most attractive and dynamic insurance markets. Urbanisation, rising disposable incomes, relatively low levels of social welfare and a rapidly-growing middle class continue to provide enormous structural growth opportunities across our markets. AIA is exceptionally well-positioned with our market-leading positions, extensive geographical reach, deep experience in Asia and exceptional financial strength. We are committed to growing our business by helping our customers meet their long-term protection needs and wealth aspirations. We will continue to do this in a way that reflects our aim of making a difference to the real lives of people and their communities.
“We have achieved a great deal since our IPO but, as I have said many times before, I strongly believe that we are still at an early stage in a long journey to realising AIA’s full potential. That is a very exciting prospect for our business. 2015 will be our fifth year since becoming an independently listed company and throughout this time we have generated year-on-year profitable growth and made substantial progress in delivering increase in long-term sustainable value for our shareholders. The Board has recommended a 19 per cent increase in our final dividend, a clear reflection of the health of our business, the strong results and our confidence in AIA’s outstanding prospects.”