AIA Delivers Strong Growth in 2015-Philam Life

HONG KONG, 25 February 2016 – The Board of Directors of AIA Group Limited (“AIA”; or the “Company”; stock code: 1299) is pleased to announce 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.” 

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APPENDIX
Financial Summary

Key Performance Highlights

New Business Performance by Segment