Strong Growth in China and Hong Kong Drives 2021 Performance, Alongside Higher Dividend Payout
[BENGALURU] – AIA Group has announced a US$10 billion share buyback plan following a 22% increase in its new business value (VONB) for the year 2021. The insurer also declared a higher final dividend as its performance was boosted by significant growth in key markets, particularly China and Hong Kong.
The value of new business, which reflects the expected profit from new premiums and is a crucial indicator of future growth, rose to US$3.37 billion in 2021, compared to US$2.77 billion the previous year. Both China and Hong Kong were responsible for about half of the global growth in new business, with Mainland China contributing a 14% growth, while Hong Kong saw a 37% increase, marking a strong recovery from pandemic-related setbacks.
AIA’s announcement of the buyback plan comes as the company benefits from improved operating conditions, particularly in Hong Kong, where its agent network plays a key role in driving business. The plan will be spread over the next three years.
Group CEO Lee Yuan Siong explained that the buyback plan is a reflection of surplus capital accumulated over time, which is now being used to provide strategic and financial flexibility in response to capital market conditions.
In addition to the buyback, AIA declared a final dividend of 108 Hong Kong cents per share, representing an 8% increase compared to the previous year. This brings the total dividend for 2021 to 146 Hong Kong cents per share.
