AIA GROUP LIMITED This announcement is for information purposes only and does not constitute an invitation or offer by any person to acquire, purchase or subscribe for securities. This announcement 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.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
AIA Group Limited
友 邦 保 險 控 股 有 限 公 司(Incorporated in Hong Kong with limited liability)
Stock Code: 1299 ANNUAL RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2016 AIA DELIVERS ANOTHER EXCELLENT SET OF RESULTS VONB UP 28 PER CENT ON CONSTANT EXCHANGE RATES OPERATING PROFIT UP 15 PER CENT - FINAL DIVIDEND UP 25 PER CENTThe Board of Directors of AIA Group Limited (stock code: 1299) is pleased to announce that AIA has delivered excellent results for the year ended 30 November 2016. Highlights are shown on a constant exchange rate basis:
Excellent growth in value of new business (VONB)28 per cent growth in VONB to US$2,750 million
31 per cent increase in annualised new premiums (ANP) to US$5,123 million
VONB margin of 52.8 per cent
Strong operating profit generationIFRS operating profit after tax (OPAT) up 15 per cent to US$3,981 million
IFRS operating earnings per share up 15 per cent to 33.25 US cents
Embedded value (EV) operating profit up 19 per cent to US$5,887 million
Operating return on EV (ROEV) increased to 15.4 per cent
Robust cash flow and resilient capital positionUnderlying free surplus generation of US$4,024 million, up 11 per cent
Free surplus of US$9.8 billion
EV Equity of US$43.7 billion; EV of US$42.1 billion, up 12 per cent
Net remittances of US$2.0 billion
Solvency ratio for our principal operating company, AIA Co., of 404 per cent on the HKICO basis
Significant increase in recommended final dividend25 per cent growth in final dividend to 63.75 Hong Kong cents per share
Total dividend of 85.65 Hong Kong cents per share, an increase of 23 per cent
"AIA has delivered an excellent set of results in 2016. We have achieved record new business profits, significant earnings growth, strong free surplus generation and a step up in shareholder dividends. Today's headline figures, with VONB up by 28 per cent, and our consistent track record of year-on-year profitable growth are the direct result of the strong fundamental growth drivers in the Asia-Pacific region, our highly-diversified and resilient business model and our commitment to building a high-quality, sustainable business for the long term.
"The Board has recommended a further step up of 25 per cent in the 2016 final dividend from our higher base in 2015 to 63.75 Hong Kong cents per share. This dividend uplift reflects our excellent financial performance and our confidence in the future outlook for the Group.
"AIA has been in Asia for close to a century. The powerful structural economic, social and demographic changes taking place across the region present an unparalleled opportunity for the Asian life insurance industry and one which AIA, with our distribution reach, trusted brand, financial strength and people capabilities, is in an advantaged position to capture.
"We have made an excellent start to 2017 with strong value of new business growth in the first two months of our financial year. We have clear strategic priorities in place and are committed to building on our strong competitive advantages by helping our customers meet their long-term financial needs through our products and services. This provides us with a strong foundation to deliver profitable growth and long-term value for our shareholders, as we help our customers live longer, healthier, better lives and plan for a brighter future."
About AIAAIA Group Limited and its subsidiaries (collectively "AIA" or the "Group") comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 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 49 per cent joint venture in India and representative offices in Myanmar and Cambodia.
The business that is now AIA was first established in Shanghai almost a century 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$185 billion as of 30 November 2016.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code "1299" with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: "AAGIY").
Contacts Investment Community | News Media | ||
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FINANCIAL SUMMARY
PERFORMANCE HIGHLIGHTSUS$ millions, unless otherwise stated | 2016 | 2015 | YoY (CER) | YoY (AER) |
New Business Value | 2,750 | 2,198 | 28% | 25% |
Value of new business (VONB) | ||||
VONB margin | 52.8% | 54.0% | (1.3) pps | (1.2) pps |
Annualised new premiums (ANP) | 5,123 | 3,991 | 31% | 28% |
Embedded Value | 5,887 | 5,068 | 19% | 16% |
Embedded value (EV) operating profit | ||||
EV Equity | 43,650 | 39,818 | 11% | 10% |
Value of in-force business (VIF) | 25,570 | 23,009 | 12% | 11% |
Adjusted net worth (ANW) | 16,544 | 15,189 | 11% | 9% |
Embedded value | 42,114 | 38,198 | 12% | 10% |
EV operating earnings per share (US cents) | 49.17 | 42.34 | 19% | 16% |
EV Equity per share (US cents) | 362.06 | 330.49 | 11% | 10% |
IFRS | 3,981 | 3,556 | 15% | 12% |
Operating profit after tax (OPAT) | ||||
Total weighted premium income (TWPI) | 22,133 | 19,876 | 14% | 11% |
Operating earnings per share (US cents) | ||||
- Basic | 33.25 | 29.71 | 15% | 12% |
- Diluted | 33.16 | 29.62 | 15% | 12% |
Dividends and Capital | 63.75 | 51.00 | n/a | 25% |
Dividend per share (HK cents) | ||||
- Final | ||||
- Total | 85.65 | 69.72 | n/a | 23% |
AIA Co. HKICO solvency ratio | 404% | 428% | n/a | (24) pps |
2016 2015 VONB Change
US$ millions, unless otherwise stated | VONB | VONB Margin | ANP | VONB | VONB Margin | ANP | YoY (CER) | YoY (AER) |
Hong Kong | 1,161 | 48.8% | 2,294 | 820 | 62.0% | 1,263 | 42% | 42% |
Thailand | 384 | 81.5% | 471 | 395 | 75.8% | 520 | 1% | (3)% |
Singapore | 316 | 74.1% | 427 | 341 | 72.4% | 471 | (7)% | (7)% |
Malaysia | 198 | 57.1% | 341 | 172 | 57.9% | 292 | 23% | 15% |
China | 536 | 86.4% | 621 | 366 | 83.5% | 438 | 54% | 46% |
Other Markets | 321 | 32.9% | 969 | 296 | 29.4% | 1,007 | 10% | 8% |
Subtotal | 2,916 | 56.0% | 5,123 | 2,390 | 58.9% | 3,991 | 25% | 22% |
Adjustment to reflect additional | ||||||||
Hong Kong reserving and | ||||||||
capital requirements | (37) | n/m | n/m | (72) n/m | n/m | n/m | n/m | |
After-tax value of unallocated | ||||||||
Group Office expenses | (129) | n/m | n/m | (120) n/m | n/m | n/m | n/m | |
Total | 2,750 | 52.8% | 5,123 | 2,198 | 54.0% | 3,991 | 28% | 25% |
AIA Group Ltd. published this content on 24 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 March 2017 15:02:07 UTC.
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