VONB UP 18 PER CENT; OPAT PER SHARE UP 12 PER CENT; UFSG PER SHARE UP 10 PER CENT
EV EQUITY PER SHARE UP 9 PER CENT FINAL DIVIDEND PER SHARE UP 10 PER CENT; NEW SHARE BUY-BACK OF US$1.6 BILLION
EV EQUITY PER SHARE UP 9 PER CENT FINAL DIVIDEND PER SHARE UP 10 PER CENT; NEW SHARE BUY-BACK OF US$1.6 BILLION
HONG KONG, 14 MARCH 2025 – The Board of AIA Group Limited (the "Company") is pleased to announce the Group's financial results for the year ended 31 December 2024. Growth rates are shown on a constant exchange rate basis:
New business performance
- Value of new business (VONB) up 18 per cent to US$4,712 million
- All reportable segments delivered double-digit VONB growth
- Annualised new premiums (ANP) up 14 per cent to US$8,606 million
- New business profitability increased with VONB margin up 1.9 pps to 54.5 per cent
Embedded value
- EV Equity of US$71.6 billion after capital returns to shareholders, up 9 per cent per share
- Embedded value (EV) operating profit of US$10,025 million, up 19 per cent per share
- Operating ROEV of 14.9 per cent, up 200 basis points from 12.9 per cent in 2023
IFRS earnings
- Operating profit after tax (OPAT) of US$6,605 million, up 12 per cent per share
- On track to meet OPAT per share CAGR target of 9 to 11 per cent from 2023 to 2026
- Operating ROE of 14.8 per cent, up 130 basis points from 13.5 per cent in 2023
Free surplus generation
- Underlying free surplus generation (UFSG) of US$6,327 million, up 10 per cent per share
- Net free surplus generation (net FSG)(3) of US$4,020 million after reinvestment in organic new business
- Shareholder capital ratio(4) of 236 per cent at 31 December 2024
Dividends and share buy-back
- Final dividend increased by 10 per cent to 130.98 Hong Kong cents per share
- New US$1.6 billion share buy-back(5) in accordance with our enhanced capital management policy
- US$6.5 billion returned to shareholders in 2024 through dividends and our share buy-back programme
Lee Yuan Siong, AIA's Group Chief Executive and President, said:
"AIA has delivered an excellent performance in 2024 with record new business profits, strong earnings growth and free surplus generation. We have continued to drive higher operating ROEV and ROE while returning substantial capital to shareholders. VONB was up 18 per cent to US$4,712 million with all reportable segments achieving double-digit growth, reflecting the diversification and strength of our business. Successive layers of profitable new business drive sustained growth in earnings and cash generation with OPAT per share up 12 per cent and UFSG per share up 10 per cent. EV Equity per share increased by 9 per cent, after returning US$6.5 billion to our shareholders through dividends and share buy-back.
"Following our prudent, sustainable and progressive dividend policy, the Board has recommended a 10 per cent increase in the final dividend to 130.98 Hong Kong cents per share, which results in an increase of 9 per cent in total dividend per share for 2024. In addition, following our enhanced capital management policy, the Board has also announced a new share buy-back of US$1.6 billion. This comprises US$0.6 billion to meet the payout ratio target of 75 per cent of annual net FSG and an additional US$1.0 billion following a regular review of the Group's capital position. Together, the dividends and share buy-backs amount to a total yield(6) of approximately 6 per cent for shareholders.
"AIA is uniquely well-positioned to capitalise on the long-term structural growth potential in the world's most attractive market for life and health insurance through the consistent execution of our clear and ambitious strategy. I am confident that AIA’s long-term business prospects remain exceptional. We will continue to strengthen our substantial competitive advantages to capture the opportunities ahead of us and create sustainable value for all our stakeholders."
AIA Singapore's Business Results in 2024:
In 2024, AIA Singapore achieved another year of strong results.
- AIA Singapore delivered 15 per cent Value of New Business (VONB) growth for the full year, supported by double-digit growth across both our agency and partnership distribution channels.
- Annualised New Premium (ANP) increased by 52 per cent to USD$897 million while VONB margin decreased by 16.8pps to 50.5 per cent. This is attributed to a shift in product mix towards long-term savings products, in line with our strategy to focus on the wealth segment.
- Total Weighted Premium Income (TWPI) achieved 13 per cent growth, primarily driven by strong business growth.
- Operating Profit After Tax (OPAT) increased by 1 per cent, as business growth was mostly offset by lower investment income on surplus assets due to increased remittances to support AIA Group's share buy-back programme, as well as lower positive non-medical claims experience compared to 2023.
Our tied distribution channel, comprising our agency force and AIA Financial Advisers (AIA FA) achieved exceptional growth. AIA Singapore's premier agency strategy and focus on continuous digital innovation significantly bolstered the number of active agents and active new agents in 2024, further reinforcing our strong position in the life insurance industry.
AIA Singapore's partnership distribution channel delivered double-digit per cent growth, driven by strong sales of high-net-worth (HNW) and savings products. This was further supported by our wealth propositions that continue to address the evolving needs of both domestic and regional customers.
In the corporate solutions segment, AIA Singapore reaffirmed our market leadership in employee benefits in Singapore, securing the Best Employee Insurance Provider of the Year (GOLD) at the HR Vendors of the Year Awards 2024 for an unprecedented nineteenth consecutive year. This prestigious accolade underscores our dedication to elevating all-rounded employee well-being through initiatives such as AIA Vitality and WorkWell with AIA programme, fostering a healthier and more engaged workforce in Singapore.
Wong Sze Keed, Chief Executive Officer of AIA Singapore, said:
"AIA Singapore achieved strong business performance in 2024, demonstrating growth across Value of New Business, Annualised New Premium, Total Weighted Premium Income and Operating Profit After Tax.
"For the tenth time, we have been recognised as the #1 Million Dollar Round Table (MDRT) company in Singapore, recording the highest number of MDRT qualifying members yet again. This consistent achievement is testament to our insurance representatives' dedication and professionalism to providing unparalleled support for our customers' health and financial well-being at every stage of life. We always put customers at the heart of everything we do, and this commitment remains unwavering.
"Our business in Singapore is well-positioned to capture long-term growth opportunities across the mass affluent and HNW segments. Leveraging our unique "Wealthbeing by AIA" proposition, we provide holistic wealth solutions which seamlessly meld wealth creation and well-being. In 2024, we successfully launched AIA Wealth Centre1 and AIA International Wealth2, offering bespoke wealth management advice and services for affluent and HNW individuals in Singapore and across the region. Notably, AIA Platinum Wealth Venture3, an Investment-Linked Plan (ILP) providing exclusive access to leading global fund managers through our AIA Regional Funds Platform, has been instrumental in driving long-term savings growth.
"As the nation's leading employee insurance provider, we expanded benefits for over 1.3 million employees4 in Singapore, including introducing an industry-first proposition of inpatient mental health coverage, which is available to most insured employees. Informed by the AIA Live Better Study 2024 which found that approximately 3 in 5 (59%) of Singapore consumers5 need or might need more resources or support for mental wellness, this initiative addresses critical wellness needs. To further enhance access to quality healthcare, we partnered with WhiteCoat to provide all insured customers6 with affordable telemedicine, mental wellness support, paediatric care and home health screenings.
"We continued to advance our Technology, Data and Analytics (TDA) strategy, driving the launch of AIA+, a one-stop mobile app delivering a seamless, customer-centric experience. Customers can now effortlessly view their portfolio, access policy documents, make payments and submit claims, empowering them to take charge of their financial decisions – all on a single platform.
"Our commitment to customer-centricity, innovation, and industry leadership has earned us top honours, including being named Health Insurance Company of the Year at the 28th Asia Insurance Industry Awards. We were also recognised at the Insurance Asia Award 2024 for International Life Insurer of the Year, Insurance Initiative of the Year and Digital Transformation Initiative of the Year. As a leading life and health insurer, we remain dedicated to empowering customers to live healthier, longer, and better lives through exceptional customer experiences and compelling solutions for today and the long-term."
