Damien Mu
The Board of Directors of AIA Group Limited have announced that AIA has delivered excellent results for the year ended 30 November 2015.
Strong growth in value of new business (VONB) (on a constant exchange rate basis)
- 26 per cent growth in VONB to US$2,198 million
- Annualised new premiums (ANP) of US$3,991 million, up 14 per cent
- 4.6 pps increase in VONB margin to 54.0 per cent
Robust operating profit growth (on a constant exchange rate basis)
- IFRS operating profit after tax (OPAT) up 16 per cent to US$3,209 million
- IFRS operating earnings per share up 16 per cent to 26.81 US cents
- Embedded value (EV) operating profit up 17 per cent to US$5,068 million
Strong cash flow and capital position
- Underlying free surplus generation of US$3,719 million, up 10 per cent on constant exchange rates
- Net remittances up 28 per cent to US$2,195 million
- EV Equity of US$39.8 billion; EV up to US$38.2 billion
- Solvency ratio for AIA Co. of 428 per cent on the HKICO basis
Significant increase in recommended final dividend
- 50 per cent uplift in final dividend to 51.00 Hong Kong cents per share
- Total dividend of 69.72 Hong Kong cents per share, an increase of 39 per cent
Mark Tucker, AIA’s Group Chief Executive and President, said: “We are delighted to have delivered another excellent performance in 2015, with VONB growth of 26 per cent on a constant exchange rate basis, which provides the clearest picture of our operating performance during periods of exchange rate volatility. Our strong results are once again the outcome of our robust and highly diversified business model with the right distribution platforms and product portfolios in the right markets, backed by our market-leading brand and financial strength.
“The Board has recommended an upward rebasing of the final dividend by 50 per cent to 51.00 Hong Kong cents per share, bringing the total dividend for 2015 to 69.72 Hong Kong cents per share. This significant dividend uplift is a direct result of the sustained success of our strategy to deliver strong profitable growth, through investing capital at attractive returns in quality new business with increased capital efficiency. It also demonstrates our tremendous confidence in AIA’s future growth prospects.
“Despite the recent volatility and uncertainty in global financial markets, Asia remains the most attractive and dynamic region for life insurance in the world. The life insurance industry continues to benefit from significant structural economic and demographic trends, rapid urbanisation and growth in disposable incomes across the region. We are confident that AIA’s leading businesses across Asia provide us with an advantaged position as we help millions of people around the region to live longer, healthier lives and plan for a brighter future.
“We enter 2016 with strong momentum and well placed to continue achieving our ambitions. The growth opportunities ahead of us are significant and our focus is on executing our proven strategy by providing quality products and services to our customers and generating sustainable value for our shareholders.”
AIA Australia continues to play an important role in helping to drive these results in the local market. According to the latest Plan for Life results, AIA Australia is second in respect to total market share at 13.1% as at September 2015. AIA Australia remains the largest group insurer by market share at 24.8%.
Commenting on the results AIA Australia Chief Executive Officer, Damien Mu, said:
“AIA Group has continued to perform well in 2015, and we are proud to be a part of that success in Australia. We continue to focus on retention of our key partnerships while we continue to grow, also we are pleased with the progress made with the AIA Vitality program which is enhancing the conversation and engagement around life insurance and wellbeing with over 11,000 people now signed up and making the first steps to improve their health. We look forward to an exciting year ahead in 2016 to continue working with our partners to engage Australians with respect to their life insurance needs.”
