2025-09-08 08:40Financial Performance - New business value increased by 14% to $2.838 billion[3] - After-tax operating profit reached $3.609 billion, representing a 12% increase per share[3] - Basic earnings per share rose by 10% to $3.569 billion[3] - Annualized embedded value operating return improved to 17.8%, up 290 basis points from 14.9% in 2024[3] - The company returned $3.71 billion to shareholders through dividends and share buybacks in the first half of 2025[3] - Operating profit increased to $5.893 billion, with earnings per share rising by 15%[16] - The total intrinsic value equity profit for the six months ended June 30, 2025, was $4.4 billion, after accounting for the global minimum tax of $51 million[58] - The company reported a net profit of $2.53 billion for the six months ending June 30, 2025, compared to $3.31 billion for the same period in 2024[95] Dividends and Shareholder Returns - Interim dividend increased by 10% to HKD 0.49 per share[3] - The company announced a 10% increase in the interim dividend per share to HKD 0.49[45] - The company returned $3.71 billion to shareholders through dividends and share buybacks in the first half of 2025[95] - The company returned $1.768 billion in dividends and $1.942 billion in share buybacks during the first half of 2025, resulting in an ending free surplus of $9.898 billion[111] New Business Growth - Active agents increased due to investments in generative AI, driving a 17% growth in new business value from agents[2] - New business value for the six months ended June 30, 2025, reached $2,838 million, representing a 14% increase year-over-year[8] - New business value from the agency channel rose by 17% to $2.220 billion[20] - New business value in Hong Kong grew by 24% to $1.063 billion, with active new agents increasing by 25%[29] - New business value in China was $743 million, with a 10% growth before economic assumption changes[30] - Thailand's new business value surged by 35% to $522 million, benefiting from a strong sales increase[31] - Singapore's new business value rose by 16% to $259 million, supported by a 22% increase in agent productivity[31] Capital Management - Shareholder capital ratio as of June 30, 2025, stood at 219%[3] - The embedded value equity as of June 30, 2025, was $73.67 billion, reflecting a 5% increase per share[41] - The total embedded value increased by 8% to $77.38 billion before returning $3.71 billion to shareholders through dividends and share buybacks[54] - The group’s local capital coverage ratio remained strong at 254% as of June 30, 2025[130] Investment Performance - The company reported a negative investment return variance of $1.397 billion, primarily related to market changes in Thailand, offset by positive foreign exchange translation effects[53] - The net investment performance after expenses reached $1.536 billion, a decrease of $116 million compared to the first half of 2024[64] - The total investment return from non-dividend and surplus assets was $4.686 billion for the first half of 2025[80] Operational Efficiency - The company achieved a 255% increase in operational variance, rising to $231 million compared to $71 million in the previous year[67] - The company reported a strong operating profit margin of 15.1%, with a return on equity of 16.2%, an increase of 140 basis points year-over-year[63] - Operating expenses increased by 2% to $1.751 billion for the six months ended June 30, 2025, with an expense ratio improvement of 80 basis points to 7.3%[86] Market Performance - AIA Group achieved a new business value growth of 14% to $2.838 billion in the first half of 2025, supporting profit growth[39] - The company has over 19,000 MDRT agents, more than double that of its closest multinational competitor[21] - The overall new business value across eleven markets grew by 14%, with nine markets reporting increases[178] Future Outlook - The company aims for a compound annual growth rate of 9% to 11% in after-tax operating profit per share from 2023 to 2026[3] - The company aims for a compound annual growth rate of 40% in new business value from new regions in mainland China from 2025 to 2030[168]