AIA GROUP LIMITED 香港中環干諾道中一號 35/F, AIA Central
友邦金融中心三十五樓 1 Connaught Road Central
Hong Kong
T: (852) 2832 6166
F: (852) 2838 2005
AIA.COM
Media Release
AIA Delivers Strong Growth for Third Quarter 2014 Value of New Business up 23 per cent HONG KONG, 17 October 2014 - AIA Group Limited (stock code: 1299) today announces a record value of new business (VONB) result for the third quarter ended 31 August 2014. Highlights of the third quarter:• 23 per cent growth in VONB to US$468 million
• 48.7 per cent VONB margin, an increase of 4.0 percentage points (pps)
• Annualised new premium (ANP) of US$944 million, up 13 per cent
• Total weighted premium income (TWPI) of US$4,935 million, up 12 per cent
Key Financial SummaryUS$ millions, unle ss othe rwise state d | Three months ended 31 August | Nine months ended 31 August |
US$ millions, unle ss othe rwise state d | YoY YoY 2014 2013 AER CER | YoY YoY 2014 2013 AER CER |
VONB | 468 379 23% 24% | 1,260 1,024 23% 27% |
VONB margin | 48.7% 44.7% 4.0 pps 4.1 pps | 47.1% 42.7% 4.4 pps 4.3 pps |
ANP | 944 839 13% 13% | 2,634 2,366 11% 15% |
TWPI | 4,935 4,409 12% 11% | 13,939 12,904 8% 11% |
"2014 continues to be a very strong year for AIA with 23 per cent growth in VONB and delivery of our highest-ever quarter at US$468 million.
"AIA is exceptionally well-placed to capitalise on the considerable long-term structural growth trends across the Asia-Pacific region through the quality and scale of our distribution and product franchise. Substantial growth in disposable incomes combined with low levels of both social welfare and private insurance cover drive enormous potential for the sale of savings and protection products across our markets.
"We will maintain our strategic focus on further developing the quality and scale of our core agency and bancassurance distribution, and leveraging our financial strength and leading brand position across the region to meet our customers' protection needs and long-term wealth aspirations.
"Our third-quarter results build on the excellent performance achieved in the first half of the year and demonstrate our focus on delivering sustained and large-scale profitable growth."
AIA Group Limited is incorporated in Hong Kong with limited liability. 友邦保險控股有限公司是於香港註冊成立之有限公司。
AIA Delivers Strong Growth for Third Quarter 2014
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SUMMARY FOR THE THIRD QUARTER
VONB increased by 23 per cent based on actual exchange rates compared with the third quarter of 2013 to US$468 million.
China was again one of our strongest performing businesses with the consistent execution of our Premier Agency strategy delivering excellent VONB growth from a combination of increased active agent numbers, higher agency productivity levels and a positive product mix.
Other highlights of the quarter include excellent growth in Hong Kong and Malaysia with continued momentum in Singapore and another solid performance in Thailand. Each of these markets delivered double-digit VONB growth in the third quarter.
Our operation in Korea delivered positive VONB growth in the third quarter notwithstanding lower margins in the direct marketing business following the industry-wide suspension of outbound telesales earlier in the year. Other Markets continued to be affected by unfavourable exchange rate movements in the third quarter in Indonesia and from liquidity tightening in the banking sector, as previously disclosed.
VONB margin increased by 4.0 percentage points to 48.7 per cent compared with the third quarter of 2013. Margin expansion was mainly driven by product mix improvements continuing the trend from the first half. Economic assumptions remain unchanged for the quarter from those shown in our Annual Report 2013. ANP increased by 13 per cent to US$944 million compared with the third quarter of 2013.
TWPI increased by 12 per cent to US$4,935 million compared with the third quarter of 2013.
The fundamental drivers of Asian economies are unchanged and we remain positive about the long-term outlook for economic growth in the region. China's deliberate policy move towards more stable, high-quality growth will be positive for the region over the long term.
Asian economies have demonstrated resilience through economic cycles and remain well- positioned. Domestic drivers of growth will continue to be supplemented by increased demand from advanced economies and from the continuation of relatively loose monetary policy, particularly in the Eurozone and Japan.
AIA has a leading position across the growth markets of the Asia-Pacific region and our business is very strongly supported by the major economic and demographic drivers of growth. We remain well-placed to capture the significant growth opportunities that the region offers.
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AIA Delivers Strong Growth for Third Quarter 2014
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About AIA
AIA Group Limited and its subsidiaries (collectively "AIA" or the "Group") comprise the largest independent publicly listed pan-Asian life insurance group. It has operations in 17 markets in Asia-Pacific - wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$159 billion as of
31 May 2014.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 28 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code "1299" with American Depositary Receipts (Level 1) traded on the over- the-counter market (ticker symbol: "AAGIY").
Contacts | |
Investment Community | News Media |
Paul Lloyd +852 2832 6160 | Stephen Thomas +852 2832 6178 |
Feon Lee +852 2832 4704 | Sonia Tsang +852 2832 1868 |
Joel Lieginger +852 2832 4703 | Emerald Ng +852 2832 4720 |
As for all quarterly new business highlights announcements, there will not be a conference call for media or investors and your usual contact will be available to answer queries.
AIA Delivers Strong Growth for Third Quarter 2014
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Notes:
1. AIA's third fiscal quarter of 2014 ended on 31 August 2014.
2. Change is shown on a year-on-year basis unless otherwise stated.
3. All figures are presented in actual reported currency (US dollar) and based on actual average exchange rates (AER) unless otherwise stated. Change in constant exchange rates (CER) is calculated using constant average exchange rates for 2014 and 2013.
4. Economic assumptions are the same as those shown as at 30 November 2013 in our 2013 annual results preliminary announcement published on 21 February 2014. Non-economic assumptions used are based on those at 30 November 2013 updated to reflect the latest experience observed.
5. VONB is calculated based on assumptions applicable at the point of sale and before deducting the amount attributable to non-controlling interests. The amounts of VONB attributable to non-controlling interests in the three months ended 31 August 2014 and in the three months ended 31 August 2013 were US$4 million and US$3 million respectively.
6. TWPI consists of 100 per cent of renewal premiums, 100 per cent of first year premiums and 10 per cent of single premiums, before reinsurance ceded.
7. ANP represents 100 per cent of annualised first year premiums and 10 per cent of single premiums, before reinsurance ceded and excluding pension business.
8. VONB includes pension business.
9. ANP and VONB margin exclude pension business.
This document contains forward-looking statements relating to AIA Group Limited that are based on the beliefs of the Group's management as well as assumptions made by and information currently available to the Group's management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. When used in this document, the words "will", "future" and similar expressions are intended to identify forward-looking statements. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements.
This document is for information purposes only and does not constitute an invitation or offer by any person to acquire, purchase or subscribe for securities. This document is not, and is not intended to be, an offer of securities of the Company for sale in the United States. The securities of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the U.S. Securities Act. There is not, and is not intended to be, any public offering of the securities of the Company in the United States.
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