2024-04-12 08:30Financial Performance - AIA Group reported total assets of $286 billion as of December 31, 2023[15]. - The company achieved insurance payouts and claims of $21 billion in 2023, an increase of $2 billion compared to 2022[16]. - AIA reported a total weighted premium income of US$340 million in 2023, reflecting a growth compared to US$262 million in 2022[53]. - The annualized new premiums reached US$71.2 billion in 2023, showing a slight decrease from US$71.2 billion in 2022[36]. - New business value increased by 33% to $4.034 billion, with double-digit growth in 10 markets and all distribution channels[62]. - The operating profit attributable to underlying value per share rose by 37%, driven by the growth in new business value, resulting in an operating return on embedded value increase of 350 basis points to 12.9%[111]. - The embedded value operating profit increased by 33% to $8.890 billion, reflecting significant growth in new business value and higher expected returns due to rising interest rates[157]. - The basic free surplus generated was $6.041 billion, with a per share increase of 5%, driven by higher interest rates, partially offset by medical claims experience[160]. - The contract service margin rose to $53.115 billion, with a basic contract service margin growth rate of 8.4%, driven by the continued achievement of large-scale and high-quality new business[158]. - AIA recorded a strong financial performance in 2023, with new business value increasing by 33% to $4.034 billion, supported by double-digit growth in 10 markets[154]. - The local capital adequacy ratio reported at 275% as of December 31, 2023, indicating strong financial health[184]. Shareholder Returns - AIA has returned US$7.2 billion to shareholders through an ongoing share buyback program, part of a total plan of up to US$10 billion[42]. - The group returned USD 5.9 billion to shareholders through increased dividends and ongoing share buyback programs, with free surplus before capital return increasing by 25%[103]. - The board proposed a final dividend of HK$1.1907 per share, a 5% increase, resulting in a total dividend of HK$1.6136 per share for 2023[64]. - The total dividend for 2023 reached HKD 1.6136 per share, a 5% increase from 2022[140]. - The share buyback program repurchased approximately 740 million shares for a total value of $7.207 billion, reducing the number of shares outstanding by 6% since the program's launch in March 2022[161]. - The company plans to return excess capital of $3.637 billion to shareholders through a share buyback program, in addition to a dividend of $2.293 billion[138]. Market Expansion and Operations - AIA Group's business covers 18 markets, with a focus on Asia, and serves over 42 million individual policyholders and more than 18 million group insurance plan participants[16]. - The company opened a new branch in Henan, upgraded its Shijiazhuang center to a branch, and is preparing to expand into Hubei and Sichuan provinces[19]. - AIA's joint venture Tata AIA Life is the third-largest private life insurance company in India and the leading retail protection provider[20]. - The company operates in 12 markets and has expanded its community initiatives across 18 markets in 2023[29][49]. - New business value in mainland China grew by 28% from February to December 2023, with total new business value for the year increasing by 20% to USD 1.037 billion[107]. - AIA's new business value in Singapore increased by 10% to USD 0.394 billion, supported by strong performance from agency and partner distribution channels[109]. - The investment in China Post Life Insurance, representing a 24.99% stake, provided additional growth opportunities and a complementary customer base[108]. - The company is expanding its operations into new major cities in Hubei and Sichuan provinces in China[133]. Technology and Digital Transformation - The company has been recognized as the "Digital Insurer of the Year" for three consecutive years by InsuranceAsia News[5]. - AIA's cloud technology adoption rate reached 90%, significantly higher than the global financial services and insurance industry average[44]. - AIA's digital transformation led to over 20 million existing and potential registered customers using its app, with over 85% of customer transactions completed digitally[115]. - The end-to-end processing ratio improved from 35% in June 2020 to 85% by December 2023[142]. Sustainability and ESG Initiatives - AIA Group has become the first life and health insurance group in the Asia-Pacific region to have its short-term reduction targets verified by the Science Based Targets initiative[24]. - The company launched a climate transition plan aiming for net-zero emissions by 2050, integrating climate factors into its core business[46]. - The company received recognition for its leadership in ESG, being awarded top industry and regional badges for three consecutive years[68]. - AIA's commitment to sustainability was highlighted by becoming the first life and health insurance group in the Asia-Pacific region to have its near-term reduction targets verified by the Science Based Targets initiative (SBTi)[170]. Employee Engagement and Corporate Culture - AIA has been recognized with the "Gallup Exceptional Workplace Award" for the second consecutive year, highlighting high employee engagement[44]. - The company remains confident in growth opportunities, focusing on achieving substantial profitability in new business growth while maintaining financial discipline[185]. Product and Service Development - The company launched the "AIA Junyu Wealth Management Center" and "AIA Junyu Health Garden" in Hong Kong, offering integrated health and wealth management services[19]. - AIA's comprehensive ecosystem combines various new products and services to meet a broader range of financial and health protection needs for customers[116]. - Approximately 60% of new customers opted to include "AIA Vitality" in their policies when given the choice[49]. - AIA's distribution platform, supported by the "Best Agents" strategy, accounted for 76% of the total new business value, growing by 23%[167]. Market Performance - New business value in Hong Kong increased by 82% to $1.43 billion, contributing significantly to the group's new business performance[132]. - The new business value in China grew by 55%, with the company now operating 10 branches in the mainland[133]. - In Thailand, new business value rose by 21% to $713 million, with the company holding a 41% market share[134]. - The overall new business value in other markets remained flat at $406 million, but excluding Vietnam, it increased by 15%[137]. - New business value from partner distribution channels surged by 58%, with bank insurance channels achieving a 42% increase[143].