AIA reports US$6.8b profit, declares US$1.6b buyback

Hong-Kong based insurer AIA (1299) reported a net profit of US$6.84 billion (HK$53.35 billion) last year, up nearly 82 percent from a year earlier, driven by a 12 percent increase in insurance service results and share buybacks.

AIA on Friday declared a US$1.6 billion buyback plan, citing a refurbished capital management policy, and posted an 18 percent rise in annual value of new business, or VONB, to US$4.71 billion on strong performance at core markets.

The company last increased its share buyback program in April 2024, extending it by about US$2 billion.

It saw a rise in annualized new premiums in Hong Kong and China, its main markets, owing to a favorable product mix shift and repricing efforts.

It reported VONB, which gauges expected profit from new premiums and is a key measure of future growth, of US$4.71 billion on a constant currency basis for the year ended December 31, compared to US$4.03 billion a year ago.

Its key onshore China business logged a 20 percent rise in VONB for the year, while the Hong Kong segment posted a 23 percent rise.

AIA declared a final dividend of 130.98 HK cents per share, higher than the 119.07 HK cents declared last year.

STAFF REPORTER and REUTERS