[SINGAPORE] AIA Singapore’s value of new business (VONB) rose 15 per cent on the year to US$454 million for the full year ended Dec 31, 2024, from US$394 million in the year-ago period, on a constant exchange rate basis.
This came amid double-digit growth across both the insurer’s agency and partnership distribution channels, AIA said in an earnings announcement on Friday (Mar 14).
AIA Singapore’s distribution channels include its agency force and AIA Financial Advisers.
It said: “Our strategic focus on capturing the increasing wealth opportunities in Singapore has contributed to very strong growth in sales of long-term savings products.”
While this product mix shift contributed to a lower VONB margin of 50.5 per cent for the full year, this was more than offset by annualised new premium (ANP) growth, resulting in higher VONB on the whole.
ANP, which is used to measure new business sales, was 52 per cent higher year on year at US$897 million.
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Wong Sze Keed, chief executive officer of AIA Singapore, noted strong business performance across total weighted premium income (TWPI) and operating profit after tax (OPAT) in 2024.
TWPI, a gauge for the insurer’s longer-term business volumes, grew 13 per cent to US$4.4 billion. OPAT rose 1 per cent to US$669 million.
AIA said: “Business growth was mostly offset by lower investment income on surplus assets due to increased remittances to support AIA Group’s share buyback programme, as well as lower positive non-medical claims experience compared to 2023.”
Wong affirmed that AIA’s business in Singapore is “well-positioned to capture long-term growth opportunities across the mass affluent and high-net-worth segments”.
At the group level, AIA registered an 18 per cent increase in VONB for the full year to US$4.7 billion, on a constant exchange rate basis.
Its VONB margin was up 1.9 percentage points at 54.5 per cent, while ANP rose 14 per cent to US$8.6 billion. OPAT rose 7 per cent to US$6.6 billion.
This translates to an operating earnings per share of US$0.5970, up 12 per cent from US$0.5394 previously.
The board proposed a final dividend of HK$1.3098 per share, up from HK$1.1907 previously.
The group said it will commence a new US$1.6 billion share buyback, in accordance with its enhanced capital management policy.
Lee Yuan Siong, AIA’s group chief executive and president, said: “This comprises US$0.6 billion to meet the payout ratio target of 75 per cent of annual net free surplus generation, and an additional US$1 billion following a regular review of the group’s capital position.”
Together, the dividends and share buybacks would amount to a total yield of about 6 per cent for shareholders, added Lee.
The new share buyback is expected to start as soon as practicable, and is targeted for completion within this year.
