AIA Group (1299) H2 2024 earnings summary

Executive summary

• Delivered record double-digit growth in new business, earnings, and cash generation in 2024, with VONB up 18% to $4.7 billion and OPAT up 12% per share.

• Returned $6.5 billion to shareholders, increased final dividend per share by 10%, and announced a new $1.6 billion share buyback.

• Premier Agency and strategic partnerships drove strong growth, with agency contributing 74% of VONB and bancassurance/partnerships VONB up 28–39%.

• Embedded Value (EV) equity rose 9% per share to $71.6 billion; comprehensive equity up 10% per share to $87.6 billion.

• Expanded reach in mainland China to 14 geographies, doubling target customers to over 340 million.

Financial highlights

• VONB grew 18% year-over-year to $4,712m, with double-digit growth across all segments and a margin of 54.5%.

• OPAT per share increased 12% to 59.70 US cents; UFSG per share rose 10% to 57.19 US cents.

• Net profit surged 84% to $6.8 billion, driven by strong operating performance and favorable non-operating items.

• Free surplus before shareholder returns up 19% to $19 billion; closing free surplus at $12.6 billion.

• Operating ROEV reached 14.9%, and operating ROE increased by 130 basis points to 14.8%.

Outlook and guidance

• Confident in achieving OPAT per share CAGR target of 9–11% from 2023 to 2026, underpinned by strong business fundamentals and financial discipline.

• Enhanced capital management policy targets 75% payout of annual net free surplus generation.

• Expect VONB margin in China to remain above 50% in Q1 2025, despite margin pressure from low interest rates.

• Management remains focused on long-term growth, leveraging scalable models and digital transformation.

• Asia’s structural growth drivers and low insurance penetration support long-term growth.