2020-04-08 08:32Financial Performance - AIA Group reported total assets of $284 billion as of December 31, 2019[2]. - After-tax operating profit grew by 9% to $5.741 billion, while basic free surplus rose by 13% to $5.501 billion[28]. - Shareholders' equity based on intrinsic value increased by 12% to $63.905 billion[28]. - The solvency ratio of AIA Co. was 362%, with free surplus exceeding required regulatory capital by $14.917 billion[28]. - Total weighted premium income reached $35 billion, reflecting a strong performance despite geopolitical challenges[19]. - New business value increased to $4.154 billion, with a 16% rise excluding Hong Kong operations[28]. - The company reported a 13% growth rate in fixed exchange rates for total assets and a 19% increase in total liabilities[19]. - The total dividend for the year was HKD 126.60 per share, an 11% increase from HKD 114.00 in 2018[37]. - Net profit for 2019 reached $6.648 billion, a 165% increase compared to 2018, influenced by positive market fluctuations in equity and real estate[76]. - The average shareholders' equity increased by $3.216 billion to $39.820 billion, maintaining an operating return of 14.4%[55]. Market Expansion and Operations - The company serves over 36 million individual policyholders and more than 1.6 million group insurance participants across 18 markets in the Asia-Pacific region[2]. - AIA Group became the largest independent listed life insurance group in the Asia-Pacific region, with a market presence in 18 markets[2]. - The company was granted permission to operate in Myanmar, becoming the first foreign life insurer to issue policies in the country[11]. - AIA's market expansion included the launch of operations in Myanmar in November 2019[29]. - AIA Group's market presence in China is a core part of its growth strategy, with plans to convert its Shanghai branch into a subsidiary[37]. - The company opened marketing service departments in Tianjin and Shijiazhuang to promote insurance industry collaboration in the Beijing-Tianjin-Hebei region[11]. Strategic Partnerships - AIA Group extended its strategic partnership with Commonwealth Bank of Australia for a further 25 years, enhancing its control over life insurance operations in Australia[11]. - The company signed a Joint Cooperation Agreement with the Commonwealth Bank of Australia to extend their strategic partnership for 25 years[41]. Digital Transformation and Innovation - Over 80% of customer interactions are now conducted digitally, with over 90% of new policies submitted digitally and automated underwriting accounting for 62%[44]. - AIA's digital transformation initiatives are aimed at enhancing end-to-end customer experience and improving sales conversion rates through data analytics[44]. - The company launched a new digital support platform for distribution partners to enhance customer targeting and insurance initiatives[106]. - The "AIA Smart" app launched in April 2019 significantly improved the productivity of agents using the platform[115]. - The company launched a mobile app "AIA Connect" in Hong Kong, facilitating a 20% reduction in paper submissions and handling 80% of common inquiries through a built-in chatbot[116]. Customer Engagement and Health Programs - AIA Vitality, a health program based on scientific data, is part of the company's transformation towards becoming a lifelong partner for customers[38]. - Health program membership exceeded 1.7 million, a 42% increase from the end of 2018, reflecting the company's commitment to improving customer health and well-being[43]. - The "AIA Vitality" program has been launched in 12 markets, significantly changing customer perceptions of life and health insurance[108]. - In 2019, 21% of "AIA Vitality" members improved their Body Mass Index (BMI), and 39% improved their cholesterol levels to healthy levels[108]. Employee Engagement and Development - AIA Group has over 23,000 employees and emphasizes talent development as a strategic priority, launching a comprehensive learning and development strategy in 2019[177]. - The AIA Leadership Centre in Bangkok hosted over 250 events and provided more than 25 customized training programs in 2019, focusing on leadership development[178]. - AIA Group was recognized as a preferred employer in 2019, receiving multiple awards including being listed in Forbes' "Global 2000 – World's Best Employers 2019"[183]. - AIA Group has been included in the Bloomberg Gender-Equality Index for three consecutive years, highlighting its commitment to gender equality[183]. Risk Management and Governance - The risk management framework ensures consistent implementation across the group and provides streamlined processes for timely identification, assessment, and reporting of risks[152]. - The board of directors is responsible for overseeing the group's risk management activities and has established a risk appetite statement to guide risk-taking[154]. - The company has established various committees, including audit, risk, and remuneration, to enhance operational efficiency and accountability[194]. - The company is actively involved in community and economic development initiatives, aligning with its corporate social responsibility goals[196]. Financial Outlook and Future Strategies - The company anticipates continued demand for its products due to strong local factors and favorable demographic trends in Asia, despite short-term uncertainties[46]. - Future outlook includes continued investment in new product development and technology advancements to meet market demands[196]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its service offerings[195].