AIA Group (1299) H1 2024 earnings summary

Executive summary

• Achieved record value of new business (VONB) of $2,455m, up 25% year-over-year, with double-digit growth in 11 markets including the five largest businesses.

• OPAT rose 10% per share to $3,386m, and UFSG increased 10% per share to $3,391m.

• Returned $3.4bn to shareholders via dividends and buy-backs; interim dividend per share increased by 5.2% to 44.50 HK cents.

• Announced OPAT per share CAGR target of 9–11% from 2023 to 2026.

• Maintained strong capital position with a pro forma shareholder capital ratio of 242%.

Financial highlights

• VONB reached $2,455m (+25% year-over-year); VONB margin increased 3.3 pps to 53.9%.

• OPAT was $3,386m (+7% year-over-year); operating ROE at 15.3%.

• Net profit increased 53% year-over-year to $3,314m; basic EPS up 58% to 29.53 US cents.

• Free surplus at $14.6bn after capital returns; net free surplus generation $2,243m.

• Embedded value (EV) operating profit was $5,350m (+24% year-over-year); operating ROEV at 16.5%.

Outlook and guidance

• OPAT per share CAGR target of 9–11% from 2023 to 2026 reaffirmed.

• Confident in achieving 2024 and long-term ambitions, leveraging leading market positions and structural growth drivers in Asia.

• Near-term macro and geopolitical uncertainties not expected to diminish long-term growth potential.