AIA Group 1299 02 (Jun 20 - Dec 27)

[winston]

vested

AIA Group (1299 HK)
1H24: Strong Beat In Results; Eyeing 9-11% Three-year CAGR For OPAT Per
Share

AIA delivered strong 1H24 results with VONB growing 26% yoy, ahead of our and
market expectations.

This was driven by a 17% yoy ANP growth and a 3.3ppt yoy margin expansion.

Key financial metrics like OPAT and EV also showed encouraging improvement.

We believe management's new guidance on OPAT per share growth targets and better margin performance across the Greater China market could lead to valuation re-rating in the near term.

Maintain BUY: Target price: HK$91.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

<Results>AIA 3Q VONB Up 17% on AER Slight Beat, Up 16% on CER

AIA (01299.HK) announced 16% growth in value of new business (VONB) on constant exchange rates (CER) at US$1.161 billion for the third quarter ended 30 September 2024.

On actual exchange rates (AER), the VONB rose 17%.

The amount topped the upper limit of US$1.136 billion as predicted by the four brokers surveyed by our reporters.

It realized growth from 15 of its 18 markets.

The annualized new premiums (ANP) grew 14% to US$2.212 billion.

AIA China achieved 9% VONB growth during the quarter. AIA China continues to make encouraging progress with geographical expansion, delivering excellent VONB growth as it drives quality recruitment and active agent numbers. It has recently received regulatory approvals to begin preparations to establish new provincial branches in Anhui and Shandong.

AIA Hong Kong delivered 24% VONB growth, driven by increases of 28% from its domestic customer segment and 20% from the Mainland Chinese visitor (MCV) customer segment.

AIA Thailand reported positive VONB growth.

In aggregate, its ASEAN businesses achieved 8% VONB growth.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

AIA posts record 3Q new business value on China, Hong Kong growth

By John Biju

Reported growth in 15 of its 18 markets during the quarter.

Source: Reuters

https://theedgemalaysia.com/node/732354

[winston]

vested

AIA's new business rises 16pc in quarter

by Cici Cao

AIA's average credit rating of the fixed income portfolio held in respect of policyholders and shareholders remained stable at A-level as of September.

The corporate bond portfolio is well diversified, with over 1,700 issuers and an average holding size of US$43 million.

Nearly US$72 million of bonds, representing 0.04 percent of the total, were downgraded to below investment grade in the third quarter.

Source: The Standard

https://www.thestandard.com.hk/section- ... in-quarter

[winston]

Regional financial conference takeaways

Understanding recent expansion into new regions in mainland China and its implications for future VONB growth was a key focus for investors.

Despite an unprecedented four consecutive new regions approved by regulators within one month from late-Oct, share price has barely reacted.

This suggests much investor pessimism on the value of AIA’s China business, in our view, and ignores AIA’s resilience to China headwinds.

AIA HK’s domestic strength and MCV risks were also a focus for investors.

Reiterate Add and sector top pick. TP unchanged at HK$111.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... E4F620AD2B

[winston]

vested

<Research>BofAS Expects AIA's VNB to Climb 16% Last Yr, Keeps Buy w/ TP $92.2

BofA Securities has released a research report estimating AIA (01299.HK) to achieve a Value of New Business (VNB) of US$4.7 billion for FY24, reflecting a YoY growth of 16% at actual exchange rates (compared to the market's general expectation of 18% growth) and a YoY growth of 18% at constant exchange rates, implying a 3% YoY rise in 4QFY24.

BofA Securities saw this growth basically in line with market expectations and as a solid foundation for sustainable growth in FY25.

The broker kept a Buy rating on AIA and set its target price at $92.2 to reflect the company's vigorous profitability and new business growth.

AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

<Research>HSBC Research Estimates AIA (01299.HK) 2024 VONB to Hike 17%; Sustainable Growth Underappreciated

AIA (01299.HK) and PRU (02378.HK) are both underperforming, despite good progress, HSBC Global Research issued a research report saying.

The broker believed that investors are keen to see sustainable VONB growth that translates into improvements in cash, earnings and DPS, given the macro risks.

HSBC Global Research kept ratings at Buy for both firms as their PEV and PE ratios are at multi-year lows, and believed that the sustainable growth of the two companies is underestimated.

Therefore, the broker kept its target price on AIA at $98, and chopped its target price for PRU to $116 from $121.

HSBC Global Research forecasted 2024 VONB of AIA/ PRU to increase by 17%/ 1% YoY to US$4.7 billion/ US$3.2 billion, with double-digit growth in VONB from Hong Kong, mainland China and other markets for AIA.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

A hidden GenAI gem

The substantial value creation potential of life insurers utilising GenAI, particularly given their possession of massive amounts of proprietary health data, should not be overlooked

AIA is positioned as a frontrunner in the GenAI race, given its increased digitalisation and AI-enabled processing, enhanced digital lead leneration / conversion and operating efficiencies

Amplify Health, a healthtech company aiming to become Asia’s leading trusted health data repository, is expected to help strengthen AIA’s health value proposition and future return

Since the launch of DeepSeek, the HSI and AI plays were up 14% and 31%, respectively, outperforming AIA, which was up only 6%.

This presents opportunities for sector rotation. Reiterate BUY

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=23954

[winston]

not vested

2024 VONB Rises 17%, in Line, Launch of New Shr Buyback of US$1.6B

AIA announced its results for the last financial year this morning (14th).

Its value of new business (VONB) rose 17% YoY to US$4.712 billion at actual exchange rate (AER), in line with market consensus.

Insurance revenue amounted to US$19.314 billion, up 10.3% YoY. Net profit amounted to US$6.836 billion, up 81.6% YoY, with an EPS of US$0.62.

Related News: AIA 2024 VONB Up 17% at AER, In Line, w/ New USD1.6B Shr Buyback

Final DPS was $130.98 cents, compared to $119.07 cents for the same period 023.

Total DPS for the year rose 9% YoY to $175.48 cents, also in line with market consensus.

In addition, AIA's Board approved a new share buy-back of US$1.6 billion. This comprises US$0.6 billion to meet the payout ratio target of 75% of annual net FSG, and an additional US$1 billion following a further review of the Group’s capital position.

Together, the dividends and share buy-backs amount to a total yield of approx. 6% for shareholders.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

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

Net profit of US$6.84 billion (HK$53.35 billion) last year, up nearly 82 percent from a year earlier.

Declared a US$1.6 billion buyback plan 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.

Source: The Standard

https://www.thestandard.com.hk/breaking ... 6b-buyback