Friday, 27 February 2015 00:14
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The largest independent publicly listed pan-Asian life insurance group AIA said yesterday it has delivered record results for the financial year ended on 30 November 2014.
The highlights of AIA’s performance in 2014 include: Record value of new business (VONB); 24% growth in VONB to $1,845 million; annualised new premium (ANP) of $3,700 million, up 11%; and 5.0 pps increase in VONB margin to 49.1%.
AIA recorded strong IFRS operating profit growth, with 16% growth in IFRS operating profit after tax (OPAT) to $ 2,910 million, IFRS operating earnings per share up 16% to 24.31 US cents, and net profit up 22% to $3,450 million.
In terms of sustainable value creation and robust capital position, it recorded 14% growth in embedded value (EV) operating profit to $4,535 million, $4.2 billion increase in EV equity to $39.0 billion, up 12%, and solvency ratio for AIA Co. of 427% on the HKICO basis.
AIA’s Group Chief Executive and President Mark Tucker said: “AIA achieved another excellent set of results in 2014, delivering a record VONB of $1,845 million, up 24% from 2013. Our performance is a clear reflection of the strength of AIA’s business model, the determined execution of our proven growth strategy and our position as the leading insurer exclusively focused on the Asia-Pacific region. The consistency in our performance year on year, with each of our key financial metrics reaching new highs, demonstrates AIA’s potential for future value creation.
“Asia is one of the world’s most attractive and dynamic insurance markets. Urbanisation, rising disposable incomes, relatively low levels of social welfare and a rapidly-growing middle class continue to provide enormous structural growth opportunities across our markets. AIA is exceptionally well-positioned with our market-leading positions, extensive geographical reach, deep experience in Asia and exceptional financial strength. We are committed to growing our business by helping our customers meet their long-term protection needs and wealth aspirations. We will continue to do this in a way that reflects our aim of making a difference to the real lives of people and their communities.
“We have achieved a great deal since our IPO but, as I have said many times before, I strongly believe that we are still at an early stage in a long journey to realising AIA’s full potential. That is a very exciting prospect for our business. 2015 will be our fifth year since becoming an independently listed company and throughout this time we have generated year-on-year profitable growth and made substantial progress in delivering increase in long-term sustainable value for our shareholders. The Board has recommended a 19% increase in our final dividend, a clear reflection of the health of our business, the strong results and our confidence in AIA’s outstanding prospects.”
AIA Group has operations in 17 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97% subsidiary in Sri Lanka, a 26% joint venture in India and a representative office in Myanmar.
