AIA Group Plans $1.6 Billion Share Buy-Back Programme

Reporting 17% percent growth in new business value in 2024, the AIA Group, a Hong Kong–based multinational insurance and finance corporation, on Friday said that it will start a $1.6 billion share buy-back this year.

The company took the decision following its enhanced capital management policy, and the share buy-back of $1.6 billion. This comprises $600 million to meet the pay-out ratio target of 75% of annual net FSG and an additional $1 billion following a regular review of the Group’s capital position. Together, the dividends and share buy-backs amount to a total yield of approximately 6% for shareholders.

In addition, following its prudent, sustainable and progressive dividend policy, the AIA Board has recommended a 10% increase in the final dividend to $0.17 per share, which results in an increase of 9% in total dividend per share for 2024.

AIA’s Group Chief Executive and President Lee Yuan Siong said that “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.

He also expressed confidence that AIA’s long-term business prospects remain exceptional and will continue to strengthen its substantial competitive advantages to capture the opportunities ahead of and create sustainable value for all our stakeholders.

According to him, AIA has delivered an excellent performance in 2024 with record new business profits, strong earnings growth and free surplus generation. The co mpany has continued to drive higher operating Return on Embedded Value (ROEV) and Return on Equity (ROE) while returning substantial capital to shareholders.

VNOB Increase by 18%

The Value of New Business (VONB) was up 18% to $4.71 billion with all reportable segments achieving double-digit growth, reflecting the diversification and strength of the AIA Group’s business.

“Successive layers of profitable new business drive sustained growth in earnings and cash generation with Operating Profit After Tax (OPAT) per share up 12% and Underlying Free Surplus Generation (UFSG) per share up 10%. Embedded Value (EV) V Equity per share increased by 9%, after returning $6.5 billion to our shareholders through dividends and share buy-back,” he explained.

The measure of future profitability of new policies sold rose to $4.71 billion, from $4.03 billion a year earlier.

“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 added.