AIA Group of Companies Announcement of earnings

The value of new business is at an all-time high with the value of new business increasing as high as 31 percent, accounting for 1.3 billion USD in the first quarter of 2024, along with announcing a capital management policy to increase efficiency and increase returns in the share repurchase program.

AIA Group Executive Committee Announcing the results of the Value of New Business (VONB) growth of 31 percent, reported at constant exchange rates (CER) for the first quarter ending March 31, 2024. In addition, AIA has also announced a capital management policy by increasing Value of the share repurchase program is 2 billion USD. in the share repurchase program from the original USD 10 billion

✅️ Value of new business (VONB) grew to a record high of 31 percent, accounting for USD 1,327 million.
✅ ️Double-digit growth in new business value. in every business report section
✅️ Profit margin of value of new business (VONB Margin) increased to 54.2 percent.
✅️ First-year premium (ANP) increased 26 percent to $2,449 million.
✅️ Announcement of capital management policy for greater clarity in returning returns to shareholders.
✅️ Increase the value of the existing share repurchase program by another $2 billion, for a total of $12 billion.

Mr. Li Yuan Chayong, Chief Executive Officer and President AIA Group said AIA’s strong new business value grew 31 per cent in Q1 2024, rising to a record $1,327 million. with double-digit growth in new business value across all business reporting segments. Emphasizing the strength of AIA’s business

*Pay higher returns
“We also announced a new and clearer capital management policy. This will result in higher annual returns to shareholders. By paying dividends and buying back shares. Considering AIA’s strong financial position and our confidence in our future operations and financials. The board of directors has approved another $2 billion. in our existing share repurchase program Total value is 12 billion USD.

“Today’s results show that AIA has the right strategy in place. Our goal remains to remain profitable through new business operations. This will make a significant difference in shaping AIA’s financial future. By delivering increased revenue in the future Excess capital and increased shareholder value.”

*Summary of new business performance during the 1st quarter of 2024
AIA generated 31% VONB growth to US$1,327 million in Q1 2024, with double-digit growth across all business reporting segments. Premier Agency contributed 20% growth in new business value, driven by an increase in the number of productive agents and higher productivity.

New business value from partner channels grew by 70 percent, thanks to strong performance from both Bank Assurance and Independent Financial Advisor channels.

AIA China achieved 38% VONB growth, driven by Premier Agency generating double-digit VONB growth. As well as continued growth in the Bank Assurance channel.

There is also broad new business value growth across both established operations and new branches. Profit from new business value continued to increase to 54.6 percent from 52.7 percent in the second half of 2023.

Our Premier Agency model that is different in mainland China It delivered strong results in the first quarter of 2024, with more than 20 percent growth in both the number of new and established agents. Our interesting offers Especially pension insurance products that are tax deductible. Contributing to a significant increase in the number of new customers

New business margins from the agent channel were stable at approximately 60 percent, driven by strong double-digit new business growth from traditional insurance plans and continued customer demand. For our long-term savings insurance products

AIA China continues to deliver increased new business value growth Through cooperation with carefully selected Bank Assurance partners. and was supported by both strong sales activity as well as the ability to make increased profits With a profit margin of new business value of approximately 40 percent in the first quarter of 2024.

AIA Hong Kong recorded 43% VONB growth and VC margin increased to 64.3% from 58.1% in 2H 2023. Domestic customers and Mainland Chinese tourists (MCV) ) contributes to the growth of new business values in a similar manner across a broad spectrum. And both groups had double-digit growth rates. The value of new business from mainland Chinese tourists gained momentum and exceeded in Q4 2023.

More than 60 percent of new business value comes from mainland Chinese tourist customers. that came through our agent channels in the first quarter. Overall, our Premier Agency saw strong growth in new agent numbers. In March 2024, AIA Hong Kong achieved its highest monthly new business volume since travel resumed in February 2023.

AIA Thailand delivers double-digit growth in new business value across both agent and bancassurance channels. For the agent Growth is supported by an increase in the number of productive agents and higher productivity. And we continue to push for strong recruitment.

New business margins remained strong at more than 90 percent, benefiting from strong support from both traditional coverage and unit-linked life insurance products.

AIA Singapore has strong momentum in the second half of 2023, continuing into the first quarter with outstanding new business growth. Premier Agency’s position as a market leader has seen its growth supported by Recruited new agents increased by 14 percent and new agent productivity increased by more than 20 percent.

Our business in Malaysia Reported double-digit increase in new business value It has grown both in terms of agents and distribution of cooperation. The partnership with Public Bank continues to benefit from the bank’s increased focus on high net worth clients.

We also recorded double-digit valuation of new business growth in our other markets, primarily driven by the excellent performance of Tata AIA Life, which is Our joint venture in India

and strong double-digit growth from our businesses in Australia, Philippines and South Korea in the first quarter of 2024. India’s performance in Q2 2023 benefited from very strong sales. This was before there were restrictions on the personal tax benefits of large value policies, especially through our partner channels.

*Overall results of the AIA group of companies
Overall, the group’s first year premium (ANP) grew 26 per cent to US$2,449 million in the first quarter of 2024 and its new business margin increased to 54.2 per cent, benefiting from the transformational change. Plus in the mix of products offered From our general guidelines Long-term investment return assumptions remain unchanged from those shown in the 2023 Annual Report. Compared to the first quarter of 2023, the reported profit margin based on present value of new business premiums (PVNBP) increased from 10 percent to 10 percent. 11 while total premium written (TWPI) increased 13 percent to 11,223 million USD.

*Investment Portfolio Report

AIA’s strong and resilient financial position provides a key differentiator and competitive advantage. Backed by active portfolio management and a responsible investment approach.

The average rating of the bond portfolio as of March 31, 2024 remained stable at A, compared to the rating as of December 31, 2023. The company’s bond portfolio is diversified. It has more than 2,000 bond issuers and an average holding size of US$39 million.

As of March 31, 2024, 2 percent of the total bond portfolio was rated below investment grade. or not rated This amounts to approximately $3.9 billion. This compares to approximately $4.0 billion as of December 31, 2023, approximately $132 million in bonds. This represents 0.1 percent of our total bond portfolio. It was downgraded below investment grade in the first quarter of 2024.

While expected credit losses (ECL) for our bond portfolio were unchanged in the first quarter of 2024, the credit loss provision was set at $485 million. This represents 0.5 percent of the bond portfolio as of March 31, 2024, reflecting AIA’s overall high quality investment portfolio.

Asia remains the world’s most attractive long-term prospective region for life and health insurance offerings. High levels of private savings The elderly population is increasing. low access to insurance and limited welfare coverage continues to create significant demand for AIA products Our strategic priorities are leveraging unique opportunities to drive profitable new business growth forward. which will generate increased future income Increase in excess capital funds and higher shareholder value

Fluctuations in foreign currency exchange rates
AIA receives the majority of its premiums in local currency. And we closely match our domestic assets and liabilities to reduce the economic impact of changes in foreign currency exchange rates. When reporting the total numbers of the group of companies There will be currency translation implications as we report in US dollars. We have provided growth rates and comments on fixed exchange rates. unless otherwise specified Because it will give a clearer picture of the basic operating results of the business.

Report: Arun Phongphichit
Deputy editor: Arun Phongphichit

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