AIA Group Limited has announced strong financial results for the year ending December 31, 2024, marking significant growth across key operational metrics and increased capital distributions to shareholders.
New Business Growth and Profitability
AIA reported an 18% rise in the value of new business (VONB), reaching US$4.71 billion. The company’s annualized new premiums (ANP) also rose by 14%, reaching US$8.61 billion. All of AIA’s business segments recorded double-digit VONB growth, and the company’s VONB margin expanded by 1.9 percentage points to 54.5%.
Embedded Value and Financial Performance
AIA’s embedded value (EV) equity reached US$71.6 billion, reflecting a 9% per-share increase following shareholder capital returns. The company also reported an embedded value operating profit of US$10.03 billion, a 19% per-share increase. The operating return on embedded value (ROEV) increased by 200 basis points to 14.9%.
Operating profit after tax (OPAT) grew 12% per share to US$6.61 billion, with AIA maintaining its target of a 9% to 11% compound annual growth rate (CAGR) for OPAT per share from 2023 to 2026. The operating return on equity (ROE) improved by 130 basis points, rising to 14.8%.
Capital Management and Shareholder Distributions
AIA generated US$6.33 billion in underlying free surplus, reflecting a 10% per-share increase. After reinvestment into new business, net free surplus generation was reported at US$4.02 billion. The company’s shareholder capital ratio stood at 236% by the end of 2024.
The AIA board approved a 10% increase in the final dividend to 130.98 Hong Kong cents per share. Additionally, a US$1.6 billion share buyback initiative was announced, with total capital returned to shareholders in 2024 amounting to US$6.5 billion.
AIA’s Growth in 2024
Lee Yuan Siong, AIA Group’s CEO and President, highlighted the company’s financial success and commitment to returning capital to investors. He expressed confidence in AIA’s long-term prospects, noting the company’s strong position to capitalize on the significant growth potential in the life and health insurance markets across Asia.
“AIA is uniquely well-positioned to capitalize on the long-term structural growth potential in the world’s most attractive market for life and health insurance,” Siong said. “We will continue to strengthen our substantial competitive advantages to capture the opportunities ahead of us and create sustainable value for all our stakeholders.”
AIA Singapore’s Performance in 2024
AIA Singapore saw a 15% rise in VONB, with strong growth from both agency and partnership distribution channels. Annualized new premiums (ANP) surged by 52% to US$897 million. However, the VONB margin decreased by 16.8 percentage points to 50.5%, attributed to a shift towards long-term savings products.
The operating profit after tax showed a modest 1% increase, with AIA Singapore attributing the growth to lower investment income and increased remittances to support AIA Group’s share buyback program.
Wealth and Digital Expansion
AIA Singapore continued to expand its wealth management offerings, launching initiatives like AIA Wealth Centre and AIA International Wealth to serve affluent clients. The introduction of AIA Platinum Wealth Venture, an investment-linked plan, contributed to growth in long-term savings products.
Wong Sze Keed, CEO of AIA Singapore, emphasized the company’s advancements in digital engagement, particularly with the AIA+ mobile app, which integrates policy management, payments, and claims processing on a single platform. The company also introduced new mental health coverage options, expanding benefits to over 1.3 million insured employees.
AIA’s successful year underscores its strong financial and operational momentum, positioning the company to continue thriving in the competitive life and health insurance sectors.
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