AIA Announces Another Excellent Set of Results
Bacaan 7 min
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.”
–END–
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 17 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 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and a representative office in Myanmar.
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$159 billion as of 31 May 2014.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 28 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the overthe-counter market (ticker symbol: “AAGIY”).
Contacts
| Invesment Community | News Media | ||
|---|---|---|---|
| Paul Lloyd | +852 2832 6160 | Stephen Thomas | +852 2832 6178 |
| Feon Lee | +852 2832 4704 | Sonia Tsang | +852 2832 1868 |
| Joel Lieginger | +852 2832 4703 | Emerald Ng | +852 2832 4720 |
Appendix
Financial Summary
| Key Performance Highlights | ||||
|---|---|---|---|---|
| KEY PERFORMANCE METRICS | ||||
| US$ millions, unless otherwise stated | 2013 | 2012 | YoY | |
| New Business Value | ||||
| Value of new business (VONB) | 1,490 | 1,188 | 25% | |
| VONB margin | 44.1% | 43.6% | 0.5pps | |
| Annualised new premiums (ANP) | 3,341 | 2,696 | 24% | |
| EV Equity (1) (2) | 34,875 | 31,657 | 10% | |
| IFRS Operating profit after tax (OPAT) (2) |
2,504 | 2,159 | 16% | |
| Dividend per share (HK cents) | 42.55 | 37.00 | 15% |
(1) Includes goodwill and other intangible assets
(2) Attributable to shareholders of AIA Group Limited.
| New Business Performance by Segment | |||||||
|---|---|---|---|---|---|---|---|
| 2013 VONB |
2012 (3) VONB |
||||||
| US$ millions, unless otherwise stated | VONB | VONB Margin |
ANP | VONB | VONB Margin |
ANP | VONB Growth |
| Hong Kong | 468 | 57.6% | 781 | 366 | 58.4% | 604 | 28% |
| Thailand | 319 | 56.3% | 565 | 287 | 53.9% | 532 | 11% |
| Singapore | 269 | 67.3% | 400 | 220 | 65.1% | 339 | 22% |
| Malaysia | 120 | 37.8% | 319 | 69 | 46.0% | 151 | 74% |
| China | 166 | 66.4% | 249 | 124 | 57.5% | 215 | 34% |
| Korea | 91 | 26.8% | 338 | 68 | 28.5% | 237 | 34% |
| Other Markets | 220 | 32.0% | 689 | 167 | 27.0% | 618 | 32% |
| Subtotal Adjustment to reflect additional |
1,653 | 48.9% | 3,341 | 1,301 | 47.8% | 2,696 | 27% |
| Hong Kong reserving and capital requirements | (67) | n/m | n/m | (41) | n/m | n/m | n/m |
| After-tax value of unallocated Group Office expenses | (96) | n/m | n/m | (72) | n/m | n/m | n/m |
| Total | 1,490 | 44.1% | 3,341 | 1,188 | 43.6% | 2,696 | 25% |
(3) Certain segmental reclassifications have been made in the prior year VONB and VONB margin results to conform to current year presentation. The reclassification has no impact on the total VONB and VONB margin of the Group for the year ended 30 November 2012.
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’s previously-announced acquisitions of ING Management Holdings (Malaysia) Sdn. Bhd. (ING Malaysia) and Aviva NDB Insurance (ANI) completed in December 2012. The financial results of these two newlyacquired businesses are accounted for in the Group’s 2013 annual results from the respective dates of completion.
- ANP represents 100 per cent of annualised first year premiums and 10 per cent of single premiums, before reinsurance ceded and excluding pension business.
- ANP and VONB margin exclude pension business.
- VONB includes 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 and the Group’s financial year ends on 30 November.
- 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, New Zealand and Sri Lanka.
- VONB is calculated based on assumptions applicable at the point of sale and before deducting the amount attributable to non-controlling interests. The amounts of VONB attributable to non-controlling interests in 2013 and 2012 were US$11 million and US$11 million respectively.
- IFRS operating profit after tax, net profit and operating earnings per share are shown after non-controlling interests unless otherwise stated.
This document is for information purposes only and does not constitute an invitation or offer by any person to acquire, purchase or subscribe for securities. This document is not, and is not intended to be, an offer of securities of the Company for sale in the United States. The securities of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the U.S. Securities Act. There is not, and is not intended to be, any public offering of the securities of the Company in the United States.
