On March 11, the directors of AIA Holdings Limited released the financial data of the group as of 2021.
Li Yuanxiang, CEO and President of AIA group, said: “AIA achieved very strong performance in 2021, with the value of new business rising by 18%; all our major financial indicators recorded growth, including the intrinsic value of equity reaching a record high of US $75 billion. On the same basis, the value of the group’s new business (except Hong Kong business) It exceeded the level before covid-19, and the new business value of all reporting segments recorded an annual increase. Our financial position remains very strong, with a pro forma free surplus of $24.8 billion. “
In addition, the board of directors proposed to pay a final dividend of HK $108.00 per share, increasing the total dividend for the whole year by 8%.
In view of its strong financial position, AIA’s board of directors has approved the return of up to $10 billion of capital to shareholders through a share repurchase program over the next three years. “In addition to improving shareholder returns, this capital return plan will also allow AIA to retain its financial strength and continue to invest confidently in the major growth opportunities we can take advantage of.”
AIA has always focused on profitable growth. Since the initial public offering, AIA has invested US $16.2 billion in new business investment, increasing the value of shareholders’ distributable earnings in the future by US $44.5 billion. In 2021, AIA invested US $2.4 billion in additional growth opportunities, including further expanding its opportunities in the attractive Chinese life insurance market through investment in China Post Life Insurance Co., Ltd. (China Post Insurance), and entering into a partnership with the Bank of East Asia Limited (Bank of East Asia) to expand our distribution capacity. It is reported that AIA will invest up to US $1.5 billion in 2023 or before to promote the transformation of the whole group through the use of technology, digitization and analysis, so as to support the realization of ambitious growth goals in the future.
AIA believes that this is due to the rapid adoption and expansion of technology, digitization and analysis throughout the group in 2021, which has played a vital role in successfully coping with the challenge of covid-19 epidemic, and finally helped it create a lot of new growth opportunities and improve the productivity of distribution channels, And improve efficiency and customer experience.
China’s market still has huge growth potential, and the penetration rate of life insurance is low
As the life insurance industry entered the stage of transformation, development and in-depth adjustment, AIA life achieved the adverse and steady growth in the Chinese market by deepening the building of a “customer driven insurance company”, relying on the continuous consolidation and upgrading of excellent marketer channels, digital development and four major customer value propositions, and continued to become the largest contributor to the value of the group’s new business. In 2021, the new business value (vonb) of AIA life increased by 10% (calculated on the same basis), the annualized new premium (ANP) increased by 9% year-on-year, and the after tax operating profit (OPAT) also increased by 4% year-on-year, fully demonstrating the differentiated competitiveness of AIA life’s early layout of “high-quality development”.
AIA believes that the penetration rate of China’s life insurance market is still significantly low, which can bring huge growth potential to AIA. Among them, helping customers save for their long-term financial needs, such as retirement, will become an additional growth opportunity for their business. “A series of new wealth management schemes will help attract new customers and further increase our share of existing customers’ insurance product expenditure.”
In recent years, AIA has continued to give full play to its unique advantages, focused on opening up Xinjiang and expanding its territory, and grasped the growth potential of China’s life insurance market. Following the opening of a branch in Sichuan in March 2021, AIA’s newly established branch in Hubei Province also opened in January 2022. In terms of talents, new regions have also achieved good results in establishing and developing “excellent marketers”. According to the data, based on the same benchmark, the value of AIA’s new business in Tianjin, Shijiazhuang and Sichuan increased by 74% compared with 2020. In terms of channels, AIA has established partnerships with 2 Bank of East Asia and Postal Savings Bank Of China Co.Ltd(601658) Bank of East Asia. In addition, in 2021, AIA subscribed for 24.99% equity of China post insurance, which is an important step taken by AIA to continue to expand the opportunities of China’s life insurance market. This investment complements AIA’s strategy of focusing on the middle class and rich customer base, and will enable AIA to benefit from the broader growth of China’s customer segments.
In February 2022, AIA also announced the establishment of an innovative digital health insurance technology and service business with discovery Limited (Discovery), a long-term partner of AIA vitality, called amplify health The two sides will pool their respective strengths to bring about changes in the delivery of medical insurance and health care services experienced and managed by individuals, businesses, payers and suppliers, and improve the health and health care effectiveness of patients and communities in Asia.
Mr. Zhang Xiaoyu, CEO of AIA life, said: “In the face of the opening-up of the financial market and the entry of the life insurance industry into a critical period of ‘high-quality development’, we are ushering in new development opportunities in the Chinese market. The steady performance of AIA life in 2021 confirms our forward-looking and competitiveness of ‘growing up and taking root down’. 2022 marks the 30th anniversary of AIA’s return to the Chinese market. We will uphold the principle of ‘gratitude for the past, We will continue to build “China’s most trusted insurance company” and join hands with more Chinese families to share “a healthy, long and good life.”
