AIA delivers excellent financial results for 2024

Wednesday, 19 March 2025 00:04 - - {{hitsCtrl.values.hits}}

The AIA Group Ltd., has announced excellent financial results for the year ended 31 December 2024. It said Value Of New Business (VONB) was up 18% to $ 4,712 million and all reportable segments delivered double-digit VONB growth. The annualised new premiums (ANP) were up 14% to $ 8,606 million and new business profitability increased with VONB margin was up 1.9 pps to 54.5%.

It reported an Embedded value Equity of $ 71.6 billion after capital returns to shareholders, up 9% per share. The Embedded value (EV) operating profit of $ 10,025 million, was up 19% per share and Operating ROEV of 14.9%, was up 200 basis points from 12.9% in 2023.

Operating profit after tax (OPAT) was $ 6,605 million, up 12% per share. The Company said it was on track to meet OPAT per share CAGR target of 9 to 11% from 2023 to 2026. The Operating ROE of 14.8%, up 130 basis points from 13.5% in 2023.

AIA said underlying free surplus generation (UFSG) of $ 6,327 million, was up 10% per share and Net free surplus generation (net FSG) (3) of $ 4,020 million after reinvestment in organic new business.

The Company also announced a 10% increase in final dividend to 130.98 Hong Kong cents per share.

AIA’s Group Chief Executive and President Lee Yuan Siong 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% to $ 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% and UFSG per share up 10%. EV Equity per share increased by 9%, after returning $ 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% increase in the final dividend to 130.98 Hong Kong cents per share, which results in an increase of 9% 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 $ 1.6 billion. This comprises $ 0.6 billion to meet the pay-out ratio target of 75% of annual net FSG and an additional $ 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% for shareholders,” Siong said.

“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,” he added.

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