Insurer AIA (1299) reported its net profit last year at US$6.23 billion (HK$48.59 billion), down 8.81 percent year-on-year, while its value of new business hit a record high.
Its value of new business rose 15 percent to US$5.52 billion; annualized new premiums grew by 9 percent to US$9.48 billion, new business value margin improved by 3.6 percentage points to 58.5 percent, driven by a proactive product mix shift in Thailand and Hong Kong, as well as repricing in Mainland China.
The company has declared a final dividend of HK$1.44 per share, and the full-year dividend is HK$1.93 per share, both up 10 percent year-on-year.
Its adjusted net profit increased 7 percent to US$7.14 billion, and its operating profit after tax rose 12 percent per share to US$7.14 billion.
Lee Yuan-siong, chief executive and president of AIA, announced the company's plan to start a new share buyback program valued at approximately US$1.7 billion. The program aims to begin as soon as market conditions improve and is expected to be completed within this year.
The company stated that it is implementing a prudent, sustainable and progressive dividend policy, and added that it has strong financial resources and the ability to return capital to shareholders over time.
It reiterated its target to distribute 75 percent of annual net free surplus to shareholders through dividends and share buybacks, and committed to regularly reviewing its capital position and returning capital in excess of requirements.
Gloria Leung
