The Board of AIA Group Limited announcing the Group’s financial results for the year ended December 31, 2021, said that the value of the new business (VONB) was up 18% to US$ 3,366 million.
Annualised new premiums (ANP) was up 6% to US$5,647 million while the VONB margin was up 6.3 PPS to 59.3%. The operating profit after tax (OPAT) increased by 6% to US$6,409 million. Lee Yuan Siong, AIA’s Group Chief Executive and President, said: “AIA has delivered very strong results in 2021 with VONB up by 18 % and growth in all of our key financial metrics including a new high for EV Equity of US$75.0 billion. On a like-for-like basis, VONB for the Group outside Hong Kong exceeded pre-pandemic levels and all of our reportable segments grew VONB year-on-year. Our financial position continues to be very strong with a pro forma free surplus of US$24.8 billion”.
“The Board has recommended a final dividend of 108 Hong Kong cents per share which increases the total dividend by 8%. As a result of our very strong financial position, the Board has approved a return of capital to shareholders of up to US$10 billion to be conducted through a share buy-back programme over the next three years. The share buy-back represents capital accumulated over time that is surplus to our needs, allowing for capital market stress conditions and retention of capital for strategic and financial flexibility.”
“Our focus on profitable growth continued to deliver attractive returns and, since our IPO, our new business investment of US$16.2 billion has increased the value of future distributable earnings for shareholders by US$44.5 billion. In 2021, we also committed US$2.4 billion to additional growth opportunities, further increasing our exposure to the highly-attractive Chinese life insurance market through our investment in China Post Life Insurance Co., Ltd. (China Post Life) and extending our distribution by partnering with The Bank of East Asia, Limited (BEA). “
“AIA China was again the largest contributor to the Group’s VONB and delivered a 10% increase on a like-for-like basis, driven by a very strong double-digit increase in agent productivity in 2021.”
While active agent numbers declined slightly in the first half, our initiatives successfully supported a significant increase in recruitment and returned our differentiated agency to growth in the second half.
The Chinese life insurance market remains significantly underpenetrated, offering
tremendous growth potential for AIA. We see significant additional opportunities to help customers save for their long-term financial needs including retirement. Our new suite of long-term savings propositions is helping us to attract new customers and to deepen our share of wallet with existing customers.”