AIA Group Limited announces record new business results for the year ended 30 November 2011. The highlights are:
– 40 per cent increase in Value of New Business (VONB) to US$932 million
VONB is the Group’s key performance measure, representing the shareholder value created from new business written during 2011
– 4.6 pps improvement in VONB margin to 37.2 per cent
– 22 per cent increase in Annualised New Premium (ANP) to US$2,472 million
– Embedded Value (EV) of US$27,239 million, up by US$2,491 million from US$24,748 million as at 30 November 2010
– 13 per cent increase in Operating Profit After Tax (OPAT) to US$1,922 million
– 311 per cent solvency ratio on the Hong Kong Insurance Companies Ordinance (HKICO) basis, reflecting AIA’s very strong capital position
– Final dividend of 22 Hong Kong cents per share recommended, bringing the total dividend in respect of the 2011 financial year to 33 Hong Kong cents per share
Commenting on the record performance, Mark Tucker, AIA’s Group Chief Executive and President, said: “We are proud to have delivered an excellent set of results for our shareholders in 2011. This reflects the combined impact of our powerful distribution platform across Asia Pacific, our financial and technical strength and the consistency with which we are implementing our clear strategy of targeting sustained growth in shareholder value. We have continued to deliver strong growth in our key performance measures. These results demonstrate that the momentum in value creation which we generated in 2010 has been sustained throughout 2011.”
“During 2011 we concentrated our efforts on building our Premier Agency sales force and boosting agency productivity to help meet the savings and protection needs of our customers across Asia Pacific, with a particular focus on promoting the take-up of accident and health cover. We have also taken steps to make further improvements in the persistency and additional sales achieved from our in-force book and to enhance our customer service experience. Outside the agency channel, we have focused on developing deeper and more profitable relationships with our distribution partners. We are confident that we have created a powerful base from which to deliver increasing future value for our shareholders.”
The Board recommends a final dividend of 22 Hong Kong cents per share. This brings the total dividend in respect of the 2011 financial year to 33 Hong Kong cents per share, in line with the guidance given at the 2011 interim results announcement.
Mr Tucker further commented: “This year’s level of dividend payment reflects our strong cash flow position and our commitment to reflect the value achieved for shareholders through dividend returns as well as capital growth. It remains the Board’s intention to self-finance our new business growth whilst maintaining a prudent and progressive dividend policy.”
Total shareholders’ equity increased by 9 per cent in 2011 to US$21,313 million. Net profit of US$1,600 million includes the mark-to-market valuation of equity investments as required under the International Financial Reporting Standards. US$500 million of investment gains on bonds, which are not included in net profit, are included in shareholders’ equity.
Mr Tucker concluded: “AIA remains a very attractive growth story with an unmatched opportunity to benefit from strong economic growth, favourable demographic trends and latent demand for both savings and protection products in Asia. This remains the world’s most dynamic region, which has been our home for over ninety years and is our sole area of operation. Our focus on Asia Pacific markets in which we have a leading position and depth of experience, combined with our financial strength and a highly motivated team, put us in a very strong position to optimise opportunities for further growth and generate strong and sustainable returns for our shareholders.”
