AIA Group Reports Continued Growth in New Business Value
AIA Group Ltd’s stock climbed by up to 6% in Hong Kong trading following the release of its first-quarter 2025 (Q1 2025) results. The insurer reported a 13% increase in the value of new business (VONB) to US$1.5 billion compared to the same period last year on a constant exchange rate basis.
The strong performance was attributed to robust activity in AIA’s Hong Kong operations and rising interest from cross-border policyholders. Annualised new premiums totalled US$2.6 billion, a 7% increase. The Hong Kong segment saw a 16% rise in new business value, driven by demand from both local residents and travellers from mainland China seeking offshore insurance solutions.
While AIA experienced a 7% drop in VONB in mainland China due to reduced assumptions for long-term investment returns and lower government bond yields, the company continued to diversify across Asia. Singapore and India emerged as key growth areas, with AIA Singapore reporting a 15% rise in new business value for 2024 and a 52% increase in annualised new premiums.
For the full year ending December 2024, AIA posted VONB of US$4.71 billion, up 18%, while embedded value operating profit rose to US$10.03 billion, a 19% per-share increase. Operating profit after tax reached $6.61 billion, up 12% per share. The insurer reaffirmed its forecast for operating profit per share to grow at a compound annual rate of 9% to 11% from 2023 through 2026.
AIA returned US$6.5 billion to shareholders in 2024 through dividends and share buybacks. The board approved a 10% increase in the final dividend and launched a US$1.6 billion repurchase plan. The group’s capital adequacy ratio stood at 236% at year-end.
Group chief executive and president Lee Yuan Siong expressed confidence in AIA’s long-term business prospects, stating, “AIA is uniquely well-positioned to capitalise on the long-term structural growth potential in the world’s most attractive market for life and health insurance.” He added that the company would continue to strengthen its competitive advantages to capture opportunities and create sustainable value for stakeholders.
