Life Insurance
Protect your loved ones’ future from life’s uncertainties
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{{label}}28 July 2017
HONG KONG, 28 July 2017 – The Board of Directors of AIA Group Limited (stock code: 1299) is pleased to announce the Group’s unaudited consolidated results for the six months ended 31 May 2017. Highlights are shown on a constant exchange rate basis:
Record growth in value of new business (VONB)
Strong operating profit generation and increased returns
Robust cash flow and resilient capital position
Significant increase in interim dividend
Ng Keng Hooi, AIA’s Group Chief Executive and President, commenting on the results, said:
“AIA has delivered an excellent set of results in the first half of 2017 with record VONB growth of 42 per cent to US$1,753 million. As a result of our financial discipline and commitment to delivering high-quality, sustainable growth, we have also achieved significant increases in IFRS operating profit and free surplus generation. Our performance is a clear reflection of the strength of AIA’s businesses and the consistent execution of our strategy.
“The Board has declared a 17 per cent increase in the interim dividend for 2017. This reflects AIA’s excellent financial results in the first half as well as our confidence in the outlook for the Group.
“AIA has significant competitive advantages created over our long history in Asia. We have a clear strategy that is working well and is fully aligned with the substantial opportunities presented by the extraordinary social changes and substantial economic growth taking place across the region. Our strong track record of value creation is the direct outcome of our many experienced teams working collectively to deliver our strategic priorities. We will continue to challenge ourselves and our strategy to ensure we capture the many significant opportunities that the region presents – well into the future.
“Today’s announcement is the first time I have reported our financial results since I assumed the role of Group Chief Executive at the beginning of June and I am delighted that we have delivered a very strong performance. AIA is an exceptional company with outstanding people and a unique franchise. I look to the future with great enthusiasm as we continue to realise AIA’s full potential in Asia and generate sustainable value for our customers and shareholders.”
AIA Singapore’s Business Results in the First Half of 2017:
In 1H2017, AIA Singapore continued to drive sustainable long-term business with an increased focus on regular premium protection products, resulting in:
Our market leading Agency channel outperformed the industry in terms of regular premium business. This was attributed to our continued efforts of improving agency productivity with disciplined execution of our Premier Agency strategy and focus on Million Dollar Round Table (MDRT). Our results are supported by the high adoption rate of iPOS and enhanced capabilities of iMO, including providing customers with on-the-spot underwriting decisions. More than 85 per cent of our new business applications were submitted through iPOS.
Our exclusive strategic partnership with Citibank, continued to deliver good VONB growth as we focused on seller productivity and promoting protection sales through structured training on sales effectiveness and intensive coaching from AIA product specialists. Our telemarketing effort to Citibank’s credit card customer base, offering simplified protection solutions, continued to gain good traction. As a result, protection regular premium sales grew more than 50 per cent.
We also maintained market leadership in the group insurance market, driven by deeper engagement with brokers, supported by enhanced operational efficiencies.
Patrick Teow, Chief Executive Officer of AIA Singapore, said:
“AIA Singapore’s increased focus on regular premium protection business has yielded good growth of Value of New Business (VONB) from these lines of business in the first half of this year.
“We are committed to helping our customers live longer, healthier, better lives, as they take steps to improve their health through AIA Vitality, the only wellness programme in Singapore that leverages behavioural science principles to motivate members to lead healthier lifestyles. The number of AIA Vitality members has tripled compared to last year, while VONB from AIA Vitality-integrated products increased more than four folds over the same period.
“Besides advocating active and healthy lifestyles, we would like to journey with our customers at every stage of their life, offering them sound financial advice and innovative protection and savings solutions. We want our customers to be Life Confident.”
Notable innovations in 1H2017 empowering individuals, families and organisations to be life confident include:
AIA Singapore continues to support health and wellness initiatives including Fitness Fest by AIA, The Music Run™ by AIA, the Cold Storage Kids Run, KidZania Singapore’s “AIA at the Stadium” and David Beckham as Global Ambassador in support of our goal to help people keep active and be in good health.
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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 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, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
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$200 billion as of 31 May 2017.
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”).
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APPENDIX
Financial Summary
Key Performance Highlights
(1) Comparatives for balance sheet items are shown at 30 November 2016.
New Business Performance by Segment
Singapore
Notes:
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 for sale in the United States. The securities of AIA Group Limited 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 such securities in the United States.
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