AIA Group (1299) H2 2024 earnings summary

Executive summary

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

• Embedded Value (EV) equity increased 9% per share to $71.6 billion after returning $6.5 billion to shareholders; comprehensive equity reached $87.6 billion.

• Underlying free surplus generation (UFSG) grew 10% per share, supporting a 10% increase in final dividend and a new $1.6 billion share buyback.

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

• Announced enhanced capital management policy, targeting 75% payout of annual net free surplus generation.

Financial highlights

• VONB reached a record $4.7 billion, up 18% year-over-year, with double-digit growth across all segments and a margin of 54.5%.

• OPAT per share increased 12% to $6,605 million; UFSG per share up 10%.

• EV operating profit exceeded $10 billion for the first time, with operating ROEV up to 14.9%.

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

• Net profit reached $6.8 billion (+84% YoY); basic EPS up 92% to 61.79 US cents.

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% of net free surplus generation returned to shareholders.

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