AIA Announces Another Record Set of Results
Bacaan 7 min
2012 Performance Shows Value of New Business Up 27 Per Cent
Hong Kong, 27 February 2013 – The Board of Directors of AIA Group Limited (stock code: 1299) is pleased to announce record results for the year ended 30 November 2012. The highlights of AIA’s performance in 2012 include:
Record value of new business (VONB) – AIA’s key performance measure
- 27 per cent growth in VONB to US$1,188 million
- VONB margin of 43.6 per cent, up 6.4 pps
- 17 per cent underlying increase in ANP to US$2,696 million
Sustained value creation
- Embedded value (EV) up 15 per cent to US$31,408 million
- EV operating profit up 12 per cent to US$3,491 million
Strong IFRS operating profit and capital position
- Operating profit after tax (OPAT) up 12 per cent to US$2,159 million
- Net profit up 89 per cent to US$3,019 million
- Solvency ratio of 353 per cent
During the year, AIA also completed two significant acquisitions in Malaysia and Sri Lanka that have positioned AIA as Number 1 and 2 respectively in these important growth markets.
The Board of Directors has recommended a final dividend of 24.67 Hong Kong cents per share, subject to shareholders’ approval. This brings the total dividend for 2012 to 37.00 Hong Kong cents per share, representing an increase of 12 per cent compared with 2011.
Commenting on the results, Mark Tucker, AIA’s Group Chief Executive and President, said:
AIA has delivered another excellent set of results with a record performance across all of our key metrics. We continue to generate sustainable and profitable growth for our shareholders through the relentless execution of our proven growth strategy and our ability to leverage our leadership position in the world’s fastest-growing insurance markets.
“AIA is making great strides as the leading pan-Asian insurer and we have strong positions in each of our 16 markets throughout the Asia-Pacific region. Our continuing success stems from the hard work of our many thousands of dedicated and professional employees, agents and intermediaries, coupled with a deep understanding of the savings and protection needs of consumers in the Asia-Pacific region.
“This combination of expertise and customer focus enables us to understand the rapidlychanging dynamics across this diverse region. We remain excited and confident about AIA’s future prospects which are supported by the substantial and growing need for savings and protection products in all markets in Asia.
“AIA has consistently delivered excellent results since becoming an independent Hong Konglisted company in 2010. Indeed, we are now the largest Hong Kong incorporated and headquartered company listed on the Hong Kong Stock Exchange. However, we know there is much more opportunity for growth throughout Asia. We will continue to deliver on our sustainable growth strategy by launching innovative new products, improving and expanding the quality and productivity of our distribution capability, leveraging our capital strength and brand positioning and empowering our operations to ensure that each market can provide tailored and differentiated services to meet local demand.”
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Contacts
| Invesment Community | News Media | ||
|---|---|---|---|
| Paul Lloyd | +852 2832 6160 | Stephen Thomas | +852 2832 6178 |
| Angela Chang | +852 2832 5480 | Sonia Tsang | +852 2832 1868 |
| Feon Lee | +852 2832 4704 | Emerald Ng | +852 2832 4720 |
About AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or “the Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has operations in 16 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 92 per cent subsidiary in Sri Lanka and a 26 per cent joint-venture in India.
The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$134,439 million as of 30 November 2012.
AIA meets the savings and protection needs of individuals by offering a range of products and services including retirement savings plans, life insurance and accident and health insurance. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents and employees across Asia-Pacific, AIA serves the holders of more than 25 million individual policies and over 13 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-thecounter market (ticker symbol: “AAGIY”).
Appendix
Financial Highlights
| Key Performance Metrics | ||||
|---|---|---|---|---|
| US$ millions, unless otherwise stated | 2012 | 2011 | YoY | |
| New Business Value | ||||
| Value of new business (VONB) | 1,188 | 932 | 27% | |
| VONB margin | 43.6% | 37.2% | 6.4 pps | |
| Annualised new premiums (ANP) | 2,696 | 2,472 | 9% | |
| Embedded Value | 31,408 | 27,239 | 15% | |
| IFRS Operating profit after tax (OPAT) |
2,159 | 1,922 | 12% | |
| Dividend per share (HK cents) | 37.0 | 33.0 | 12% |
| Value of New Business (VONB) by Segment | |||||||
|---|---|---|---|---|---|---|---|
| 2012 | 2011 | ||||||
| US$ millions, unless otherwise stated | VONB | VONB Margin |
VONB | VONB Margin |
VONB Growth | ||
| Hong Kong | 366 | 58.5% | 305 | 56.1% | 20% | ||
| Thailand | 287 | 53.9% | 227 | 48.8% | 26% | ||
| Singapore | 226 | 66.8% | 164 | 62.3% | 38% | ||
| Malaysia | 68 | 45.2% | 58 | 40.7% | 17% | ||
| China | 124 | 57.5% | 102 | 47.2% | 22% | ||
| Korea | 68 | 28.4% | 74 | 27.3% | (8)% | ||
| Other Markets | 162 | 26.3% | 112 | 18.8% | 45% | ||
| Subtotal Adjustment to reflect additional |
1,301 | 47.8% | 1,042 | 41.6% | 25% | ||
| Hong Kong reserving and capital requirements | (41) | n/m | (49) | n/m | n/m | ||
| After-tax value of unallocated Group Office expenses | (72) | n/m | (61) | n/m | n/m | ||
| Total | 1,188 | 43.6% | 932 | 37.2% | 27% | ||
Notes:
- The results of our joint venture in India are accounted for using the equity method. For clarity, TWPI, ANP and VONB exclude any contribution from India.
- AIA previously announced the acquisitions of ING Malaysia and ANI in Sri Lanka. Both acquisitions completed in December 2012, after the 2012 financial year. The financial results of the two newly acquired businesses are not accounted for in the Group’s 2012 annual results.
- TWPI consists of 100 per cent of renewal premiums, 100 per cent of first year premiums and 10 per cent of single premiums.
- ANP represents 100 per cent of annualised first year premiums and 10 per cent of single premiums, before reinsurance ceded.
- The underlying increase of 17 per cent in ANP excludes the effect of the single large group insurance scheme written in Australia in 2011. If the contribution from this scheme is included in 2011, the increase in ANP was 9 per cent.
- ANP and VONB margin exclude corporate pension business.
- VONB includes corporate pension business.
- All figures are presented in actual reported currency (US dollar) unless otherwise stated.
- Change is shown on a year-on-year basis unless otherwise stated.
- Hong Kong refers to operations in Hong Kong and Macau; Singapore refers to operations in Singapore and Brunei; and Other Markets refers to operations in Australia, the Philippines, Indonesia, Vietnam, Taiwan and New Zealand.
- The amounts of VONB attributable to non-controlling interests in 2012 and 2011 were US$11 million and US$4 million respectively.
- IFRS operating profit after tax and net profit are shown after non-controlling interests unless otherwise stated.
- Market position in Malaysia is stated on a combined basis based on the aggregate of gross earned premiums of AIA’s operation in Malaysia and ING Malaysia for the year ended 30 November 2011 and 31 December 2011.
This document contains forward-looking statements relating to the Group that are based on the beliefs of its management as well as assumptions made by and information currently available to its management. These forward-looking statements are, by their nature, subject to significant risks. When used in this document, the words “will”, “plan”, “should” and similar expressions are intended to identify forward-looking statements. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements.
