Business Performance - New business value decreased by 13% to 1.536billion,butshowedsignificantimprovementinJunewitharecoveryingrowth[3].−Newbusinessvalueforthefirsthalfof2022was1,536 million, a decrease of 13% compared to 1,814millioninthesameperiodof2021[7].−AIAGroup′snewbusinessvalueforthefirsthalfoftheyearwasUSD1.536billion,reflectingadeclineduetotheimpactoftheCOVID−19pandemic,butsalesmomentumimprovedinJune[15].−TheoverallnewbusinessvalueintheASEANmarketsshowedverystrongdouble−digitgrowthinthesecondquarter[4].−NewbusinessvalueinAIA′sHongKongoperationsincreasedby3260 million, with a profit margin decline of 9.8 percentage points to 83.8% [105]. - New business value in Singapore decreased by 6% to 161million,buttheprofitmarginimprovedby2.7percentagepointsto65.9161 million, with a profit margin improvement of 5.4 percentage points to 67.2% [109]. - New business value in other markets decreased by 15% to 207million,withaprofitmargindeclineof3.1percentagepointsto29.13.6 billion to 20.6billion,withbasicfreesurplusrisingby53.19 billion [3]. - Operating profit based on embedded value for the first half of 2022 was 3,953million,adeclineof24,092 million in the same period of 2021 [7]. - The embedded value of equity as of June 30, 2022, was 72,326million,down175,001 million as of December 31, 2021 [7]. - The group's operating profit after tax increased by 4% to USD 3.223 billion, while the generated free surplus grew by 5% to USD 3.190 billion on a comparable basis [16]. - The basic earnings per share for the first half of 2022 was 26.49,adecreaseof227.97 in the first half of 2021 [7]. - The net loss attributable to shareholders was 571million,asignificantdecreasefromaprofitof3.245 billion in the previous year [50]. - The company reported a net operating profit attributable to shareholders of 3,243millionforthesixmonthsendedJune30,2022,comparedto3,223 million in the same period of 2021, reflecting a slight increase of 0.6% [192]. Capital and Solvency - The group’s local capital coverage ratio was very strong at 277% based on new capital requirements [3]. - The local capital coverage ratio based on specified capital requirements was 277% as of June 30, 2022, down from 291% as of December 31, 2021 [7]. - The group’s local capital solvency ratio sensitivity shows a 10% increase in equity prices would improve the ratio by 3 percentage points, while a 10% decrease would reduce it by 4 percentage points [77]. - The group has adopted the Hong Kong risk-based capital regime effective January 1, 2022, which has impacted the solvency ratios [81]. - The group’s available capital includes 5.82billioninapprovedseniornotesasofJune30,2022[73].ShareholderReturns−Afterreturning3 billion to shareholders through share buybacks and dividends, the embedded value equity stood at 72.3billion[3].−Interimdividendincreasedby62.280 billion to 46.788billion,afteraccountingfordividendsof1.650 billion and share buybacks of 1.342billion[52].MarketExpansionandStrategy−Thestrategicpartnershipwithleadingbanksrecordeddouble−digitgrowthinnewbusinessvalue,particularlyinHongKong,Malaysia,andIndia[4].−Thecompanycontinuestoexpanditsmarketpresence,withnewbranchesopeninginWuhanandZhengzhou,enhancingdistributionchannelsthroughstrategicpartnerships[102].−Thecompanyestablishednewpartnershipswithtechnologyfirms,successfullyattractingover500,000newcustomersthroughcollaborations,withover7026.02 billion, compared to a loss of $7.25 billion for the same period in 2021 [171]. - The company continues to monitor developments related to the OECD's Base Erosion and Profit Shifting 2.0 initiative, which may adversely affect its effective tax rate [92].
AIA(01299)2022-09-21 08:32