‘AIA delivers excellent financial results for 2024’

The Board of AIA Group Limited (the “Company”) is pleased to announce the Group’s financial results for the year ended 31 December 2024. Growth rates are shown on a constant exchange rate basis:

New business performance

Value of new business (VONB) up 18 per cent to US$4,712 million

All reportable segments delivered double-digit VONB growth

Annualised new premiums (ANP) up 14 per cent to US$8,606 million

New business profitability increased with VONB margin up 1.9 pps to 54.5 per cent.

Embedded value

EV Equity of US$71.6 billion after capital returns to shareholders, up 9 per cent per share

Embedded value (EV) operating profit of US$10,025 million, up 19 per cent per share

Operating ROEV of 14.9 per cent, up 200 basis points from 12.9 per cent in 2023

IFRS earnings

Operating profit after tax (OPAT) of US$6,605 million, up 12 per cent per share

On track to meet OPAT per share CAGR target of 9 to 11 per cent from 2023 to 2026

Operating ROE of 14.8 per cent, up 130 basis points from 13.5 per cent in 2023

Free surplus generation

Underlying free surplus generation (UFSG) of US$6,327 million, up 10 per cent per share

Net free surplus generation (net FSG)(3) of US$4,020 million after reinvestment in organic new business

Shareholder capital ratio(4) of 236 per cent at 31 December 2024

Dividends and share buy-back

Final dividend increased by 10 per cent to 130.98 Hong Kong cents per share

New US$1.6 billion share buy-back(5) in accordance with our enhanced capital management policy

US$6.5 billion returned to shareholders in 2024 through dividends and our share buy-back programme

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

“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.”