AIA reveals financial performance for FY21

Massive total is returned to shareholders

AIA reveals financial performance for FY21

Insurance News

By Roxanne Libatique

AIA Group Limited (AIA or the Group) has announced strong financial results for the year ended December 31, 2021 (FY21).

AIA's value of new business (VONB) totalled US$3,366 million for FY21, up 18% from its VONB during the year ended December 31, 2020 (FY20). Meanwhile, its annualised new premiums (ANP) totalled US$5,647 million, up 6% from FY20.

AIA group chief executive and president Lee Yuan Siong said the insurer grew in all its key financial aspects, including a new high for embedded value (EV) Equity of US$75.0 billion.

“On a like-for-like basis, VONB for the Group outside Hong Kong exceeded pre-pandemic levels, and all our reportable segments grew VONB year-on-year. Our financial position continues to be very strong with pro forma free surplus of US$24.8 billion,” Siong continued.

“The board has recommended a final dividend of 108.00 Hong Kong cents per share, which increases the total dividend by 8%. This follows AIA's established prudent, sustainable, and progressive dividend policy, allowing for future growth opportunities and the financial flexibility of the Group.”

AIA recently announced it is selling its superannuation and investment business while looking to bulk up its new Asian health insurance technology business. During 2021, the insurer also accelerated the delivery of its key strategic priorities as it transformed the group into a simpler, faster, more connected organisation.

“Rapid adoption and scaling of technology, digital, and analytics throughout the Group has been critical in our successful navigation through the pandemic and enables us to create significant new growth opportunities through digitally-led models, drive higher productivity of our distribution channels, and deliver greater efficiency and improved customer experience,” Siong said.

As AIA remains in a strong financial position, the AIA board has approved a return of capital to shareholders of up to US$10.0 billion, to be conducted through a share buy-back programme over the next three years.

The share buy-back represents the capital accumulated over time that is surplus to AIA's needs, allowing for capital market stress conditions and capital retention for strategic and financial stability. Meanwhile, AIA's capital return programme enhances shareholder returns while retaining its financial strength to continue investing in significant growth opportunities.

“Our focus on profitable growth continued to deliver attractive returns and, since our IPO, our new business investment of US$16.2 billion has increased the value of future distributable earnings for shareholders by US$44.5 billion,” Siong said.

Moving forward, AIA aims to be a global industry leader in environmental, social, and governance (ESG) as it builds a more sustainable future for communities. It will also continue helping people live healthier, longer, better lives as it executes its strategic priorities to generate long-term sustainable value for all its stakeholders.

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