AIA New Business Value Soars 27%, Adds $2 Billion to Buyback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 28 2024
0mins
Source: Bloomberg
- AIA's Strong Financial Performance: AIA reported a 27% increase in actual exchange rate jump in new business value in the first quarter, with significant growth in Hong Kong and mainland China.
- Share Buyback Announcement: The company announced an additional share buyback of $2 billion, adding to its existing $10 billion program, reflecting confidence in future operational and financial performance.
- Increased Payouts to Shareholders: AIA set a new target to pay out 75% of its annual net free surplus generation to shareholders through dividends and share buybacks, starting from this year.
- Market Performance and Investor Concerns: Despite strong financial results, AIA's Hong Kong-listed shares have declined by 38% since 2022, attributed to investor bearishness on Hong Kong and mainland Chinese companies.
- Regulatory Concerns: Regulatory crackdown on unlicensed insurance sales in Hong Kong earlier this month may have contributed to investor concerns and market performance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
