New Business Value and Premiums - New business value increased by 25% to 2.455billion,reachingahistoricalhigh[3]−Annualizednewpremiumsroseby174.546 billion[3] - New business value margin improved by 3.3 percentage points to 53.9%[3] - New business value increased by 25% year-on-year to 2.455billion,withanewbusinessvaluemarginof53.94.546 billion, with a new business value margin increase of 3.3 percentage points[10] - AIA's new business value increased by 25% to a record 2.455billion,with11marketsachievingdouble−digitgrowth[18]−AIA′snewbusinessvaluemarginroseby3.3percentagepointsto53.94.546 billion in the first half of 2024, contributing to over 30billioninrenewalpremiumsfor2023[18]−AIA′snewbusinessvaluegrewby252.455 billion, with 11 markets achieving double-digit growth, including its five largest markets[26] - The annualized new premium increased by 17%, and the new business value margin rose by 3.3 percentage points to 53.9%[26] - AIA Group's new business value increased by 25% to 2.455billion,with11marketsachievingdouble−digitgrowth,includingitsfivelargestbusinesses[31]−Newbusinessvalueincreasedby191.86 billion, with a new business value margin of 67.2%, up 4.5 percentage points year-on-year[107] - Annualized new premiums grew by 11% to 2.77billion,drivenbyincreasedagentactivityandhigherproductivity[108]−Partnerdistributionchannelsawa43742 million, with a new business value margin of 41.7%, up 4.2 percentage points[109] - Bank insurance channel achieved a 61% growth in new business value, with the new business value margin exceeding 40%, supported by increased active sales agents[110] - China market new business value surged by 36% to 782million,withanewbusinessvaluemarginof56.65.350 billion, with a per-share increase of 29%[4] - Post-tax operating profit was 3.386billion,withaper−shareincreaseof105.350 billion, with an embedded value operating return of 16.5%[10] - AIA's operating profit based on embedded value was 5.350billion,witha293.386 billion, with a 10% increase per share[20] - AIA's embedded value operating profit reached 5.35billion,withaper−sharegrowthof2974.234 billion, driven by 5.35billioninembeddedvalueoperatingprofit,whichgrewby29497 million to embedded value equity, while foreign exchange translation reduced it by 1.653billion[33]−AIA′sembeddedvalueoperatingreturnincreasedby360basispointsto16.54.3 billion to embedded value equity, highlighting its focus on underwriting quality business[33] - Embedded value operating profit rose by 24% to 5.350billion,withbasicembeddedvalueoperatingprofitpershareincreasingby293.386 billion, with basic post-tax operating profit per share up by 10% to 30.18 cents[40] - Contractual service margin release increased by 10% to 2.782billion,contributingtothestronggrowthinpost−taxoperatingprofit[40]−Investmentperformancenetofexpensesremainedstableat1.637 billion, despite a decrease in investment income due to share buybacks and divestments[39] - Shareholder allocated equity operating return on an annualized basis increased by 180 basis points to 15.3%[39] - The company's operating margin remained strong at 16.1%, reflecting high-quality earnings[39] - Post-tax operating profit in Hong Kong, Thailand, and Malaysia saw double-digit growth, while China grew by 4% and Singapore by 2%[45][46] - Total post-tax operating profit increased by 7% on a constant exchange rate basis to 3.386billion,withHongKongcontributing1.223 billion, up 15% year-on-year[46] - Pre-tax operating profit for the six months ended June 30, 2024, was 3.961million,comparedto3.877 million in the same period in 2023[181] - Tax expense for the six months ended June 30, 2024, was (560)million,comparedto(598) million in the same period in 2023[181] Free Surplus and Capital Management - Generated basic free surplus amounted to 3.391billion,withaper−shareincreaseof102.243 billion[6] - Shareholder capital ratio on a pro forma basis was 242%[6] - Basic free surplus generated grew by 6% to 3.391billion[10]−AIA′sfreesurplusgeneratedwas3.391 billion, with a 10% increase per share[21] - AIA's generated free surplus increased by 10% per share to 3.391billion,drivenbytheadditionofanotherbatchofprofitablenewbusinessandpositiveoperationalvariances[29]−Freesurplusincreasedto17.94 billion as of June 2024, up from 16.33billionasofDecember2023,beforedividendsandsharebuybacks[71]−Basicfreesurplusgeneratedwas3.39 billion for the six months ended June 30, 2024, a 10% increase per share[75] - Free surplus generated in H1 2024 increased to 2.243billion,upfrom1.52 billion in H1 2023[76] - Investment in new business increased by 11% to 788million,drivinga3.243 billion increase in future distributable earnings[76] - Basic free surplus per share grew 10% to 30.22 cents, with diluted free surplus per share also increasing 10% to 30.20 cents[77] - The company implemented a new capital management policy targeting a 75% payout ratio of annual free surplus through dividends and share buybacks[78] - Shareholder capital ratio stood at 262% as of June 30, 2024, down from 269% at end-2023, primarily due to capital returns to shareholders[80] - Group local capital summation method coverage ratio decreased to 262% in H1 2024 from 275% at end-2023, mainly due to capital returns[83] - Eligible group capital resources increased to 74.654billioninH12024from73.156 billion at end-2023, driven by effective business capital generation[83] - Group prescribed capital requirement rose to 28.517billioninH12024from26.646 billion at end-2023, mainly due to new business underwriting[84] - Tier 1 group capital decreased to 46.711billioninH12024from46.980 billion at end-2023, primarily due to capital returns to shareholders[84] - Shareholder-based group local capital summation method coverage ratio decreased to 329% in H1 2024 from 335% at end-2023, reflecting capital returns[86] - Group local capital summation method coverage ratio increased to 262% as of June 30, 2024, compared to 275% as of December 31, 2023[87] - Eligible group capital resources amounted to 74.654billionasofJune30,2024,upfrom73.156 billion as of December 31, 2023[87] - Group prescribed capital requirement stood at 28.517billionasofJune30,2024,comparedto26.646 billion as of December 31, 2023[87] - Group local capital summation method surplus was 46.137billionasofJune30,2024,slightlydownfrom46.510 billion as of December 31, 2023[87] - Subordinated securities and senior notes included in eligible group capital resources totaled 5.115billionand5.158 billion, respectively[89] - A 50 basis points increase in interest rates would decrease the group local capital summation method coverage ratio by 10 percentage points[91] - Shareholder capital was 40.140billionasofJune30,2024,withacoverageratioof2629.890 billion, excluding dividends and share buybacks[97] - Capital flows from subsidiaries in the first half of 2024 were 1.469billion,downfrom1.703 billion in the same period of 2023[97] - Holding company financial resources stood at 6.512billionasofJune30,2024,afterreturningcapitaltoshareholders[97]−Thecompany′sinitialholdingcompanyfinancialresourceswere8.14 billion, with net cash flow from subsidiaries of 1.469billionandcorporateactivities(includingacquisitions)of(53) million for the six months ended June 30, 2024[98] - The company's net cash flow from holding company activities was 1.416billionforthesixmonthsendedJune30,2024[98]−Thecompany′sfinalholdingcompanyfinancialresourcesbeforedividendsandsharerepurchaseswere9.89 billion, with dividends of (1.705)billionandsharerepurchasesof(1.673) billion for the six months ended June 30, 2024[98] - The company's final holding company financial resources were 6.512billionforthesixmonthsendedJune30,2024[98]−Thecompany′sloanstosubsidiaries/receivablesfromsubsidiarieswere973 million as of June 30, 2024, with 144millionrecoverablewithin12months[99]−Thecompany′smedium−termnotesandsecuritiesissuedtothemarketwere11.867 billion as of June 30, 2024, with 750millionrepayablewithin12months[99]−Thecompanyissued1 billion of 10-year fixed-rate subordinated securities with an annual interest rate of 5.375% under its global medium-term notes and securities program on April 5, 2024[100] - The company increased its interim dividend by 5.2% to HK0.445pershare[102]−Thecompanyincreaseditssharerepurchaseprogramby2 billion to a total of 12billion,with8.88 billion worth of shares repurchased and canceled as of June 30, 2024[103] - The company's credit ratings from Fitch, S&P, and Moody's remained unchanged at AA (very strong), AA- (very strong), and Aa2 (very low credit risk) respectively as of June 30, 2024[101] Shareholder Returns and Dividends - Returned 3.4billiontoshareholdersthroughdividendsandsharebuybacksinthefirsthalfoftheyear[7]−Interimdividendincreasedby5.20.445 per share[7] - AIA Group returned 3.4billiontoshareholdersthroughdividendsandsharebuybacksinthefirstsixmonthsof2024[15]−AIAGroupannouncedanewcapitalmanagementpolicyinApril2024,aimingtodistribute752 billion share buyback in April 2024, increasing the total buyback program to 12billion[15]−AIAGroup′sinterimdividendincreasedby5.20.445 per share[15] - AIA returned 3.378billiontoshareholdersthroughdividendsandsharebuybacksinthefirsthalfof2024,withanannualizedshareholderdistributionequityoperatingreturnof15.32 billion to its existing 10billionsharebuybackprogram,bringingthetotalto12 billion, with 3.1billionremainingforbuybacksasofJune30,2024[29]−AIA′sinterimdividendincreasedby5.20.445 per share, reflecting its prudent, sustainable, and progressive dividend policy[29] - AIA's solvency position remained very strong, with a declared interim dividend increase of 5.2% per share[25] - AIA's target compound annual growth rate for post-tax operating profit per share from 2023 to 2026 is 9% to 11%[25] - The company repurchased a total of 219,933,600 shares on the Hong Kong Stock Exchange during the six months ended June 30, 2024, with a total consideration (before expenses) of approximately HKD 13.054 billion (equivalent to approximately USD 1.67 billion)[140] - The average price per share for the repurchases was HKD 59.35, with the highest price at HKD 68.10 and the lowest at HKD 45.30[141] - The company also purchased 4,178,569 shares under the 2020 Restricted Share Unit Plan and the 2020 Employee Share Purchase Plan, with a total consideration of approximately HKD 257 million (equivalent to approximately USD 33 million)[142] - The total number of issued shares as of June 30, 2024, was 11,200,409,115[140] - The Bank of New York Mellon Corporation held 326,741,568 shares in physical settlement of non-listed derivative instruments[136] - JPMorgan Chase & Co. held 14,237,480 shares in physical settlement of non-listed derivative instruments and 6,300,667 shares in cash settlement of non-listed derivative instruments[136] - Citigroup Inc. held 7,801,672 shares in physical settlement of non-listed derivative instruments and 22,370,996 shares in cash settlement of non-listed derivative instruments[136] - The Capital Group Companies, Inc. held 24,767,952 shares in physical settlement of non-listed derivative instruments[136] - BlackRock, Inc. held 3,900,000 shares in cash settlement of non-listed derivative instruments and 798,200 shares in cash settlement of non-listed derivative instruments[136] - The company plans to initiate an audit tender for the 2026 fiscal year, with the current auditor, PricewaterhouseCoopers, continuing to audit the 2024 fiscal year consolidated financial statements[143] - The company granted 16,593,246 restricted share units (RSUs) under the 2020 RSU plan to employees, directors, and executives during the six months ended June 30, 2024[145] - 315,561 RSUs vested under the 2010 RSU plan and 3,364,059 RSUs vested under the 2020 RSU plan during the same period, settled by purchasing existing shares in the market[145]
AIA(01299)2024-09-09 08:40