AIA EV Equity reaches US$ 72.3 bn, 3% increase
AIA Group Limited has shown resilient performance in its financial results for the six months ended June 30, 2022.
AIA’s Group Chief Executive and President, Lee Yuan Siong, said: “Sales momentum in the second quarter improved as the temporary disruption caused by the initial outbreak of the Omicron variant declined and we delivered positive VONB growth in June.”
“The Group’s financial position remained very strong with free surplus increasing to US$20.6 billion and a Group LCSM cover ratio (2) of 277% despite the significant stress in capital markets. EV Equity was US$72.3 billion, representing an increase of 3 % in the first half before the return of US$3 billion to shareholders through our share buy-back programme and payment of the 2021 final dividend.”
“The Board has declared a 6% increase in the interim dividend to 40.28 Hong Kong Cents per share. This follows AIA’s established prudent, sustainable and progressive dividend policy, allowing for future growth opportunities and the financial flexibility of the Group.
“AIA’s wide adoption of technology, digital and analytics throughout the Group continues to enhance our business capabilities and resilience.” Agency new business momentum increased month-on-month in the second quarter and we returned to VONB growth in June.
“Our strategic partnerships with leading banks delivered double-digit VONB growth in the first half, driven by very strong performances in Hong Kong, Malaysia and India. Overall, our partnership distribution business reported a positive increase in the first half and strong VONB growth in the second quarter, supported by double-digit growth in Malaysia, Indonesia and the Philippines and a material contribution from our partnership with The Bank of East Asia, Limited (BEA).
“While sales activity in the second quarter for AIA China was substantially affected by stringent containment measures in Shanghai, Suzhou and Beijing, we achieved positive VONB growth across our other geographies. In the first half, VONB was lower due to the restrictions and following a record result in the first half of 2021, which was driven by an exceptionally high level of traditional protection sales, as previously reported. In the first half of 2022, AIA Hong Kong delivered 3 per cent growth in VONB, supported by growth in both agency and partnership distribution channels. Sales momentum in our domestic customer segment rebounded from May as daily infections subsided. ”