AIA achieved a very strong set of results in the first half of 2018 with VONB (value of new business) growth of 17% to $1,954m as well as 14% growth in IFRS operating profit, Mr Ng Keng Hooi, AIA's group chief executive and president, has said.
In a statement on the interim results which AIA released last week, he said, “VONB for the period was up 24% when excluding the retail IFA channel in our Hong Kong business which delivered an exceptional growth in the first half of 2017. These results are underpinned by the continued execution of our proven growth strategy and the scale, quality and breadth of AIA’s exceptional businesses across the Asia Pacific region.
“The board has declared a 14% increase in the interim dividend for 2018, reflecting the strength of AIA’s financial results as well as our confidence in the outlook for the Group. This is in line with our prudent, sustainable and progressive dividend policy.
“AIA continues to hold a uniquely advantaged position stemming from the significant competitive advantages we have created over our long history in Asia. The quality of our results comes from our diverse and balanced platforms – across distribution, product and geography.”
Highlights of AIA's 1H2018 results are shown on a constant exchange rate basis below:
Very strong growth in value of new business
• 17% growth in VONB to $1,954m
• 24% growth in VONB, excluding the retail IFA channel in our Hong Kong business which had an exceptional performance in the first half of 2017
• Annualised new premiums (ANP) increased by 9% to $3,252m
• VONB margin up 4.4 pps to 59.5%
Continued growth in operating profit
• IFRS operating profit after tax (OPAT) up by 14% to $2,653 m
• Embedded value (EV) operating profit increased by 19% to $4,152m
• Operating return on EV (operating ROEV) up by 70 bps to 17.0%
Robust cash flow and resilient capital position
• EV Equity of $53.6bn; EV of $52.0bn, up $1.2bn from 31 December 2017
• Underlying free surplus generation of $2,497m, up 11% on a comparable basis
• Free surplus of $13.7bn
• Solvency ratio for AIA of 458% on the HKIO basis