AIA Group’s consolidated net income for the fiscal year ending 2024 (FY 2024) surged by 81.2% year-on-year (YoY), reaching $6.9 billion. The company’s basic earnings per share (EPS) stood at $0.62, marking an 87.9% increase compared to the previous year.
The insurer also reported an 18% rise in the value of new business (VONB), which reached $4.71 billion. This growth was driven by double-digit expansion across all business segments. Additionally, annualised new premiums (ANP) grew by 14% YoY to $8.61 billion, while the VONB margin improved by 1.9 percentage points, reaching 54.5%.
Operating profit after tax (OPAT) came in at $6.61 billion, reflecting a 12% YoY increase. The company remains on track to meet its OPAT per share compound annual growth rate (CAGR) target of 9% to 11% from 2023 to 2026.
Jefferies Equity Research noted that AIA’s 2024 results were broadly in line with consensus expectations but pointed to key developments that go beyond the ongoing discussions surrounding the company’s share buyback program. Among the notable trends were record-high margins in Thailand, a shift towards wealth management in Singapore, and stronger-than-expected growth in other markets.
The return to positive operating variances is also seen as a positive sign, particularly as medical inflation shows signs of stabilising. While investment variances were negative, they were consistent with expected sensitivities, with the most significant impact stemming from a $1.0 billion adjustment related to Chinese bond yields.
AIA is also navigating challenges due to the transition to Hong Kong’s Electronic Mandatory Pension Fund (EMPF), which has led to a loss of fees. However, Jefferies suggested that AIA has not yet accounted for potential savings from lower administrative costs, which could mitigate the impact. Moreover, the transition may result in market consolidation, potentially benefiting AIA given its competitive fee structure.
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