Half Year 2026 AIA Group Limited Earnings Call Transcript
Key Points
- Record high VONB of $3.2 billion, up 10%, with growth across all distribution channels and reportable segments except Thailand.
- Operating profit after tax rose 13% per share to $4.2 billion, driving a record operating ROE of 17.5%.
- Strong cash generation with underlying free surplus generation up 10% per share and net free surplus generation up 12% per share.
- Interim dividend increased by 10%, reflecting confidence in future performance and a resilient balance sheet with low leverage.
- AIA China delivered excellent VONB growth of 20%, driven by a market-leading premier agency with active agents up 14% and new agents up 25%.
- VONB growth in Thailand was negative in the first half due to an exceptionally high comparative, though it rebounded in Q2.
- Hong Kong VONB growth of 10% was below consensus, partly due to a high base from product changes in mid-2025.
- AIA China's VONB margin declined slightly due to a shift towards participating products, which are more capital-efficient but lower margin.
- Competition in Hong Kong is intensifying, especially in bank assurance and broker channels, with some competitors adopting aggressive pricing strategies.
- Regulatory changes in mainland China's bank assurance channel caused business disruption in July, though management expects to navigate the transition.
Good morning and thank you for joining AIA's 2026 interim results presentation. We have delivered a strong set of results with double-digit growth across our key financial. Value of new business increased by 10% to a record high of $3.2 billion. We saw across all distribution channels and reportable segments excluding Thailand, with an exceptionally high comparative as previously disclosed. Underlying OMB growth was 14%, adjusting for Thailand.
Underlying OMB growth was 14%, adjusting for Thailand. AIA is consistent delivery of high-quality new business has accelerated growth in earnings. Operating profit after tax of $4.2 billion was up 13% per share, driving a record operating ROE of 17.5%. And we now expect to exceed our 9 to 11% OpEx per share CAGR target over 2023 to 2026.
Operating cash generation grew strongly with underlying free surplus generation, 10% per share. Operating cash generation grew strongly with underlying free surplus generation, 10% per share. And net free surplus
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