AIA delivers excellent VONB growth in 2023

14 March 2024 dot 11-min read
HONG KONG, 14 MARCH 2024 – The Board of AIA Group Limited (the "Company") is pleased to announce the Group's financial results for the year ended 31 December 2023.
Growth rates are shown on a constant exchange rate basis:
New business performance 
  • Value of new business (VONB) grew by 33 per cent to US$4,034 million 
  • Mainland China, Hong Kong, ASEAN(2) ex-Vietnam and India all delivered double-digit VONB growth 
  • Annualised new premiums (ANP) increased by 45 per cent to a record high of US$7,650 million 
  • VONB margin of 52.6 per cent for the year with an increase in the second half compared with the first half 
Earnings and capital 
  • Embedded value (EV) operating profit of US$8,890 million, up 37 per cent per share 
  • Operating return on EV (ROEV) of 12.9 per cent, up significantly from 9.4 per cent in 2022 
  • Operating profit after tax (OPAT) of US$6,213 million, up 2 per cent per share and underlying growth(3) of 7 per cent per share 
  • Underlying free surplus generation (UFSG) of US$6,041 million, up 5 per cent per share 
  • EV Equity up 7 per cent before returning US$5.9 billion in dividends and share buy-back; EV Equity of US$70.2 billion after capital returns to shareholders, up 2 per cent per share
  • Free surplus of US$16.3 billion at 31 December 2023  
  • Very strong Group LCSM coverage ratio(4) of 275 per cent on the GWS basis and 335 per cent on the shareholder basis 
Dividends and share buy-back programme
  • Final dividend of 119.07 Hong Kong cents per share 
  • Total dividend of 161.36 Hong Kong cents per share, up 5 per cent 
  • US$3.6 billion returned to shareholders through the share buy-back programme in 2023   
Lee Yuan Siong, AIA's Group Chief Executive and President, said:
"AIA has delivered excellent VONB growth and a strong financial performance overall. With continued strong business momentum post the pandemic across the Group, we grew ANP by 45 per cent to a record high and VONB was up 33 per cent to more than US$4 billion. Our diversified business portfolio and unrivalled distribution platform have enabled us to generate higher VONB from our key growth engines of ASEAN, Hong Kong, Mainland China and India as well as double-digit growth from 10 markets. 
"Our consistent financial discipline and focus on growing AIA's high-quality in-force business supported growth in all our other key financial metrics with increases in EV operating profit, EV Equity, OPAT and UFSG on a per share basis. EV Equity increased by 7 per cent to US$76.1 billion before the return of US$5.9 billion to shareholders through dividends and share buy-back. AIA's capital position remained very strong with free surplus of US$16.3 billion and a Group LCSM coverage ratio(4) of 275 per cent.
"The Board has recommended a final dividend of 119.07 Hong Kong cents per share, which brings the total dividend to 161.36 Hong Kong cents per share, an increase of 5 per cent from 2022. 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 excellent new business performance was underpinned by our powerful and unrivalled distribution platform. Our differentiated Premier Agency is a key competitive advantage for AIA and delivered excellent VONB growth of 23 per cent, driven by an increase in the number of active agents and increased productivity. Our extensive network of strategic distribution partners helps us extend our market reach and generated a 58 per cent increase in VONB, supported by excellent performances in both the bancassurance and retail independent financial adviser (IFA) channels.
"AIA China delivered VONB growth of 20 per cent across the whole of 2023. We saw excellent new business momentum once the disruptive effects of the pandemic subsided with a 28 per cent increase in VONB from February to December. Supported by a favourable shift in product mix within our long-term savings business and product repricing, VONB margin increased in the second half compared with the first half of 2023.
"AIA China's Premier Agency achieved double-digit VONB growth across both our established operations and new branches(5), driven by the commitment to our Premier Agency strategy with a continued focus on quality recruitment and new agent development. Since we began our geographical expansion in 2019, we have now doubled AIA China's footprint to 10 geographies following the launch of our new operation in Zhengzhou, Henan in May 2023. By replicating our effective and scalable model, our new branches delivered a 55 per cent increase in VONB in 2023 and their contribution exceeded 5 per cent of AIA China's total agency VONB in the second half.
"Mainland China continues to offer tremendous opportunities for life and health insurance. In 2023, AIA China deepened its cooperation with strategic bank partners and VONB from its bancassurance channel more than trebled. Our 24.99 per cent investment in China Post Life enables us to capture the significant value available from additional customer segments that are highly complementary to AIA China's strategy. While not included in our VONB result, China Post Life reported 17 per cent year-on-year growth in VONB(6) in 2023.
"AIA Hong Kong achieved an excellent performance with VONB up by 82 per cent, supported by growth in both our domestic and Mainland Chinese visitor (MCV) businesses and across our agency and partnership distribution channels. The Hong Kong business was the largest contributor to the Group's VONB in 2023 as we captured the very strong demand of the MCV segment following the full resumption of normal travel in February 2023. We continued to increase the number of active agents and work closely with our distribution partners to leverage the sustainable and growing opportunities from the MCV segment, which contributed around half of AIA Hong Kong's VONB in 2023.
"Our largest operation in the ASEAN markets, AIA Thailand, continued its strong track record with a further 21 per cent increase in VONB. The excellent new business performance was driven by growth from both our market-leading agency and strategic partnership with Bangkok Bank. The consistent execution of our Premier Agency strategy drove excellent growth in the number of new recruits and double-digit increases in both the number of active agents and agent productivity.
"In Singapore, AIA generated a 10 per cent increase in VONB for 2023. Our focus on agent recruitment and productivity uplift enabled us to deliver a strong increase in the number of new recruits and higher agent productivity. AIA Singapore also recorded excellent VONB growth in our partnership channels, supported by a strong performance from Citibank, N.A. and new business from other partners, which are focused on affluent and high net worth customers.
"AIA Malaysia reported solid VONB growth of 7 per cent with increases from both agency and partnership distribution channels. Our enhanced propositions that meet the evolving protection needs of our customers have helped deliver higher agent activity and productivity in our Premier Agency. Our bancassurance partnership with Public Bank delivered double-digit VONB growth in 2023, as we collaborated to increase penetration of the bank's high net worth banking customer segment and increased the number of insurance specialists. 
"VONB of our Other Markets segment was stable in 2023 compared with 2022. Strong underlying growth of the segment was offset by lower VONB from Vietnam. As previously reported, negative consumer sentiment continued to impact the life insurance industry in Vietnam through the year. Excluding Vietnam, Other Markets grew VONB by 15 per cent in 2023. Tata AIA Life delivered another year of excellent VONB growth across all distribution channels and ranked as the third largest private life insurer in India for 2023.
"Asia is the most attractive region in the world for life and health insurance, where the strong fundamental drivers of demand and major demographic trends provide powerful support for the long-term prospects of our businesses across the region. I am confident that the need for AIA's insurance products will continue to grow strongly and that our clear competitive advantages, multiple growth engines and unmatched financial flexibility will enable AIA to generate long-term sustainable value for all our stakeholders while we help people live Healthier, Longer, Better Lives."
AIA Singapore's Business Results in 2023: 
In 2023, AIA Singapore achieved a strong set of results despite the challenging external environment. 
  • AIA Singapore delivered 10 per cent Value of New Business (VONB) growth for the full year. Overall VONB was US$394 million. 
  • Annualised New Premium (ANP) increased by 8 per cent to US$586 million and VONB margin grew by 1.5pps to 67.2 per cent. 
  • Operating Profit After Tax (OPAT) decreased slightly by 2 per cent, partly due to lower investment income resulting from an increased remittance to the Group Corporate Centre in 2023 to support the share buy-back programme. Poorer medical claims experience was offset by better non-medical claims experience. 
  • Total Weighted Premium Income (TWPI) achieved 7 per cent growth buoyed by strong renewal business. 
The tied distribution channel, encompassing our agency force and AIA Financial Advisers achieved double-digit growth in the second half of the year notwithstanding heightened competition. Our Premier Agency strategy and robust ecosystem of products and services also resulted in a significant double-digit increase in new recruits. AIA Singapore's steadfast commitment to continuous digital innovation focused on providing the best service experience has empowered AIA insurance representatives with effective digital tools to enhance their productivity and deepen engagement with customers. 
The company's partnership channel recorded excellent growth, driven by the sustained momentum of AIA Singapore's bancassurance partnership with Citibank. The extension of compelling propositions to other strategic partners also played a pivotal role in catering to the needs of the affluent and high-net-worth customer segments. Notably, the launch of AIA Platinum Infinite Wealth1 in August 2023, a tailored savings plan aimed at long-term wealth accumulation and intergenerational wealth transfer, contributed significantly to the uptick in sales within our broker channel.
AIA Singapore retains our market leading position as the number one employee benefits insurer in Singapore for both new business and in-force premiums. The company has again been awarded the prestigious Best Employee Provider of the Year (GOLD), a recognition achieved for the eighteenth consecutive year at the HR Vendors of the Year 2023 awards. This accolade underscores AIA Singapore's dedication to supporting companies in safeguarding the holistic wellbeing of their employees and actively contributing to a healthier workforce in Singapore.
Wong Sze Keed, Chief Executive Officer of AIA Singapore, said: 
"AIA Singapore has achieved strong business resilience in 2023, demonstrating robust growth in Value of New Business (VONB), Annualised New Premium (ANP), and Total Weighted Premium Income (TWPI). 
"We are honoured to be recognised as the #1 Million Dollar Round Table (MDRT) Company in Singapore for nine years. This remarkable feat is testament to the tenacity and efforts of our AIA insurance representatives, and our dedication to partnering with customers throughout their life journeys. 
"AIA Singapore's relentless pursuit of digital excellence has also been instrumental in driving our continued success. Through enhancements of our Technology, Digital and Analytics (TDA) initiatives, we are constantly bringing next-level digital experiences to our customers, insurance representatives and distribution partners. iSMART+, an innovative mobile super-tool which enhances productivity and elevates quality leads for insurance representatives, was awarded the Advisers Initiative of the Year at the Insurance Asia Awards 2023.
"As part of our commitment to support the holistic well-being of Singaporeans and help them achieve their desired lifestyle at every life stage, we conducted the AIA Live Better Study 20232. With 1 in 2 acknowledging that they are far from achieving their goal of holistic wellness, we launched AIA Health3603, a comprehensive suite of solutions to offer all-rounded care and protection for every major facet of wellness. Similarly, AIA Centurion PA4, the market's first personal accident plan to provide coverage for multi-stage dementia, was launched as part of AIA Health360 to address the growing needs of Singapore's increasingly ageing population.
"AIA Singapore reaffirms its position as a leading life insurer in Singapore, dedicated to being the preferred insurance partner for customers. Our unyielding resolve to positively impact lives is reflected in a series of notable accolades, including the Reader's Digest Trusted Brand 2023 Platinum Award for the fourth consecutive year, and the prestigious Domestic Life Insurer of the Year for the seventh consecutive time at the Insurance Asia Awards 2023. We look forward to spearheading innovation through compelling propositions to empower more Singaporeans to live Healthier, Longer, Better Lives," Ms. Wong added.

  1. More information on AIA Platinum Wealth Venture may be found at
  2. '1 in 2 Population in Singapore are unable to live their desired quality of life: AIA Live Better Study 2023 reveals worrying huge gaps in consumers' well-being and happiness' (Jul 27, 2023). Available at:
  3. More information on AIA Health360 may be found at
  4. AIA Singapore tackles the nation's growing elder care needs with market's first personal accident plan to provide coverage for multi-stage dementia (Aug 3, 2023)'. Available at:
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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 – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR(7), Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR(8), and a 49 per cent joint venture in India. In addition, AIA has a 24.99 per cent shareholding in China Post Life Insurance Co., Ltd. 
The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$286 billion as of 31 December 2023.  
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, AIA serves the holders of more than 42 million individual policies and over 18 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 codes "1299" for HKD counter and "81299" for RMB counter with American Depositary Receipts (Level 1) traded on the over-the-counter market under the ticker symbol "AAGIY". 

Media Contacts for AIA Singapore
Allison Chew Email:
Dawn Teo Email:
Fannie Chong Email:

(1) The Group's 2023 annual results have been calculated and reported after the adoption of IFRS 9 and IFRS 17 from 1 January 2023.
(2) ASEAN, officially the Association of Southeast Asian Nations, refers to operations in Thailand, Singapore, Malaysia, Brunei, Cambodia, Indonesia, Myanmar, the Philippines and Vietnam.
(3) Excluding the effect of higher medical claims in 2023 compared with 2022 and minor IFRS model refinements.
(4) AIA's eligible group capital resources and group prescribed capital requirement (GPCR) are calculated based on the Local Capital Summation Method (LCSM). The Group LCSM coverage ratio on the GWS basis is referred to as the "eligible group capital resources coverage ratio" in the group-wide supervision (GWS) framework and is calculated as the ratio of the eligible group capital resources to the GPCR on the prescribed capital requirement (PCR) basis. Group LCSM coverage ratio on the shareholder basis is defined as the Group LCSM coverage ratio excluding the contribution from participating funds and other participating business with distinct portfolios on the PCR basis, except for Brunei and the Macau SAR. Participating businesses in Brunei and the Macau SAR are not considered as participating funds or other participating business with distinct portfolios under applicable local regulatory regimes in our LCSM reporting.
(5) Our established operations in Mainland China refer to our businesses in Beijing, Shanghai, Shenzhen, Guangdong and Jiangsu. Our new branches in Mainland China refer to our operations in Tianjin, Hebei, Sichuan, Hubei and Henan.
(6) VONB is calculated by China Post Life based on its principles and methodology in accordance with the China Association of Actuaries embedded value assessment guidance (CAA basis), consistent with the industry practice in Mainland China. China Post Life's VONB for the twelve-month period ended 31 December 2023 reflects its latest economic assumptions used at 31 December 2023.
(7) Hong Kong SAR refers to the Hong Kong Special Administrative Region.
(8) Macau SAR refers to the Macau Special Administrative Region.