AIA Delivers Strong Growth in 2015 VONB up 26 per cent on constant exchange rates Operating profit up 16 per cent and final dividend up 50 per cent

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.”

- 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 a presence in 18 markets in Asia-Pacific – whollyowned 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 and Cambodia.

The business that is now AIA was first established in Shanghai almost a century 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$168 billion as of 30 November 2015.

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 29 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 over-the-counter market (ticker symbol: “AAGIY”).

Financial Summary

Key Performance Highlights
US$ millions, unless otherwise stated 2015 2014 YoY
New Business Value        
 Value of new business (VONB) 2,198 1,845 26% 19% 
 VONB margin 54.0% 49.1% 4.6 pps 4.9 pps 
 Annualised new premium (ANP) 3,991 3,700 14% 8% 
Embedded value (EV) Equity 39,818 39,042 8%  2% 
 Operating profit after tax (OPAT) 3,209 2,506 16%  10% 
Dividend per share (HK cents)        
 Final 51.00 34.00  n/a 50% 
 Total 69.72 50.00  n/a 39% 
New Business Performance by Segment
  2015 2014 VONB Change
US$ millions, unless otherwise stated VONB VONB
Hong Kong 820 62.0% 1,263 619 62.3% 952 32% 32% 
Thailand 395 75.8% 520 361 63.2% 572 15% 9% 
Singapore 341 72.4% 471 299 61.2% 489 24% 14% 
Malaysia 172 57.9% 292 161 50.1% 320 27% 7% 
China 366 83.5% 438 258 83.1% 311 45% 42% 
Korea 46 18.8% 248 82 21.7% 380 (39)% (44)% 
Other Markets 250 32.9% 759 212 31.3% 676 32% 18% 
Subtotal 2,390 58.9% 3,991 1,992 53.1% 3,700 26% 20% 
Adjustment to reflect additional Hong Kong reserving and capital requirements (72) n/m n/m (50) n/m n/m n/m n/m
After-tax value of unallocated Group Office expenses (120) n/m n/m (97) n/m n/m n/m n/m
Total 2,198 54.0% 3,991 1,845 49.1% 3,700 26% 19% 

  1. All figures are presented in actual reporting currency (US dollar) and based on actual exchange rates (AER) unless otherwise stated. Change on constant exchange rates (CER) is calculated using constant average exchanges rates for 2015 and 2014.
  2. Change is shown on a year-on-year basis unless otherwise stated
  3. 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 noncontrolling interests in 2015 and 2014 were US$21 million and US$13 million respectively.
  4. VONB includes pension business. ANP and VONB margin exclude pension business.
  5. ANP represents 100 per cent of annualised first year premiums and 10 per cent of single premiums, before reinsurance ceded and excluding pension business.
  6. IFRS operating profit after tax, net profit and operating earnings per share are shown after noncontrolling interests unless otherwise stated.
  7. EV Equity includes goodwill and other intangible assets.
  8. 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, Indonesia, New Zealand, the Philippines, Sri Lanka, Taiwan and Vietnam
  9. 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.
  10. AIA's financial information in this document is based on the audited consolidated financial statements and supplementary embedded value information for the year.
This document contains forward-looking statements relating to AIA Group Limited that are based on the beliefs of the Group's management as well as assumptions made by and information currently available to the Group's management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. When used in this document, the words “will”, “future” and similar expressions are intended to identify forward-looking statements. You are strongly cautioned that reliance on any forwardlooking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements.

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 for sale in the United States. The securities of AIA Group Limited 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 such securities in the United States.