AIA Insurance's new business value in the first quarter increased by 31% year-on-year to USD 1.327 billion, reaching a quarterly high
AIA Group announced its performance data for the first quarter of 2024. The new business value increased by 31% year-on-year, reaching $1.327 billion, setting a quarterly record high. All reporting segments achieved double-digit growth, with the new business value in the partnership distribution channel increasing by 70%. The new business value margin rose to 54.2%, with an annualized new premium growth of 26%. In addition, AIA Group added $2 billion to its existing share repurchase plan, bringing the total to $12 billion. The company will also optimize its capital management policy to enhance capital returns
According to the Zhītōng Finance and Economics APP, AIA Group (01299) announced that in the first quarter of 2024, based on a fixed exchange rate benchmark, the new business value increased by 31% year-on-year to USD 1.327 billion, with all reporting segments achieving double-digit growth. Driven by an increase in active agents and productivity, the new business value of "top agents" achieved a 20% growth. Partner distribution saw a 70% increase in new business value, while both bancassurance and retail independent financial advisor channels performed strongly. The new business value margin rose to 54.2%, with annualized new premiums increasing by 26% to USD 2.449 billion. An additional USD 2 billion was added to the existing share buyback plan, bringing the total to USD 12 billion.
In accordance with the group's practice, the long-term investment return assumptions are consistent with those reported in the 2023 annual report. Compared to the first quarter of 2023, the profit margin reported based on the present value of new business premiums increased from 10% to 11%, and the total weighted premium income increased by 13% to USD 11.223 billion.
An optimized capital management policy will provide shareholders with greater clarity on capital returns: a target payout ratio of 75% of annual generated free surplus net amount, starting from the full-year performance of 2024, returning capital to shareholders annually through dividends and share buybacks; in addition, regularly review the group's capital position and return excess capital beyond the group's needs