AIA Group Limited as released its financial results for the year ending Dec 31 2024, reporting growth across key financial and operational metrics, alongside increased capital distributions to shareholders.
The insurer reported an 18% rise in the value of new business (VONB) to US$4.71 billion. Annualised new premiums (ANP) also increased, reaching US$8.61 billion, reflecting a 14% rise.
All of AIA’s business segments recorded double-digit VONB growth. The company’s VONB margin expanded by 1.9 percentage points to 54.5%.
AIA’s embedded value (EV) equity reached US$71.6 billion following shareholder capital returns, showing a per-share increase of 9%. Embedded value operating profit was reported at US$10.03 billion, an increase of 19% per share. The operating return on EV (ROEV) rose by 200 basis points to 14.9%.
The company’s operating profit after tax (OPAT) grew 12% per share, reaching US$6.61 billion. AIA confirmed that it remains on target to achieve its projected compound annual growth rate (CAGR) for OPAT per share of 9% to 11% from 2023 to 2026. The operating return on equity (ROE) also improved by 130 basis points, rising to 14.8%.
AIA generated US$6.33 billion in underlying free surplus, reflecting a 10% per-share increase. After reinvestment in organic new business, net free surplus generation was reported at US$4.02 billion. The company’s shareholder capital ratio stood at 236% as of the end of 2024.
AIA’s board approved a 10% increase in the final dividend, bringing it to 130.98 Hong Kong cents per share. Additionally, a new US$1.6 billion share buyback initiative was announced. The total capital returned to shareholders through dividends and buybacks in 2024 amounted to US$6.5 billion.
AIA group chief executive and president Lee Yuan Siong (pictured) highlighted the company’s financial growth and commitment to returning capital to investors.
“AIA is uniquely well-positioned to capitalise on the long-term structural growth potential in the world’s most attractive market for life and health insurance through the consistent execution of our clear and ambitious strategy. I am confident that AIA’s long-term business prospects remain exceptional. We will continue to strengthen our substantial competitive advantages to capture the opportunities ahead of us and create sustainable value for all our stakeholders,” he said.
AIA Singapore reported a 15% rise in VONB, supported by expansion in both agency and partnership distribution channels.
ANP grew significantly, increasing 52% to US$897 million. However, the VONB margin decreased by 16.8 percentage points to 50.5%, which the company attributed to a strategic shift toward long-term savings products. Total Weighted Premium Income (TWPI) recorded a 13% increase, reflecting overall business growth.
Operating profit after tax showed a 1% increase, with the company citing lower investment income and increased remittances to support AIA Group’s share buyback program as key factors impacting profitability.
AIA Singapore chief executive Wong Sze Keed said the company experienced strong momentum across its distribution channels and high-net-worth (HNW) business segment.
“Our business in Singapore is well-positioned to capture long-term growth opportunities across the mass affluent and HNW segments. Leveraging our unique ‘Wealthbeing by AIA’ proposition, we provide holistic wealth solutions which seamlessly meld wealth creation and well-being,” she said.
She added that the company introduced new mental health coverage options, expanding benefits to over 1.3 million insured employees.
AIA Singapore continued to develop its wealth management offerings, launching AIA Wealth Centre and AIA International Wealth to cater to affluent clients. The introduction of the AIA Platinum Wealth Venture, an investment-linked plan, supported growth in long-term savings products.
Wong also emphasised AIA Singapore’s advancements in digital engagement, particularly through the AIA+ mobile app, which consolidates policy management, payments, and claims processing into a single platform.
