AIA GroupAAIGF -1.20%61 Return-on-Tangible-Equity is 19.37% as of Dec. 2025, which is 49% above its 10-year median of 12.97. GuruFocus rates AAIGF with a GF Score™ of 61/100 and a GF Value™ of $9.78 (Fairly Valued). The stock has 2 warning signs investors should review. Among 499 Insurance companies, AIA Group ranks better than 59.72% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. AIA Group's annualized net income for the quarter that ended in Dec. 2025 was $7,400 Mil. AIA Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $38,206 Mil. Therefore, AIA Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 19.37%.
The historical rank and industry rank for AIA Group's Return-on-Tangible-Equity or its related term are showing as below:
AAIGF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 6.73 Med: 12.97 Max: 18.31
Current: 16.51
During the past 13 years, AIA Group's highest Return-on-Tangible-Equity was 18.31%. The lowest was 6.73%. And the median was 12.97%.
AAIGF's Return-on-Tangible-Equity is ranked better than 59.72% of 499
companies
in the Insurance industry
Industry Median: 13.52
vs AAIGF: 16.51
AIA Group (OTCPK:AAIGF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
AIA Group Return-on-Tangible-Equity Related Terms
AIA Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for AIA Group's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AAIGF vs AFL, MET, PRU: Return-on-Tangible-Equity Comparison
For the Insurance - Life subindustry, AIA Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AIA Group Return-on-Tangible-Equity vs Insurance Industry
For the Insurance industry and Financial Services sector, AIA Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AIA Group's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 19.37% mean?
AIA Group (AAIGF) has a Return-on-Tangible-Equity of 19.37% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AIA Group and its competitors. This is 49% above median its historical median of 12.97. Over the past decade, AIA Group's Return-on-Tangible-Equity has ranged from 6.73 to 18.31. According to the industry distribution chart, AIA Group ranks #201 out of 499 companies in the Insurance industry, placing it in the top 40.3%.
Is AIA Group's Return-on-Tangible-Equity too high?
AIA Group's current Return-on-Tangible-Equity of 19.37% is 49% above median its 10-year median of 12.97. Over the past 10 years, this metric has ranged from a low of 6.73 to a high of 18.31. The Insurance industry median Return-on-Tangible-Equity is 13.52. AIA Group's value of 19.37% is 43.3% above this industry median. Based on the distribution chart, AIA Group ranks #201 out of 499 companies in the Insurance industry, which is above the industry midpoint. Overall, AIA Group has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AIA Group's Return-on-Tangible-Equity compare to AFL and MET?
According to the Insurance industry distribution chart, AIA Group ranks #201 out of 499 companies for Return-on-Tangible-Equity. This puts AIA Group in the upper half of its industry. The industry median Return-on-Tangible-Equity is 13.52. AIA Group's value of 19.37% is 43.3% above this benchmark. Historically, AIA Group's own Return-on-Tangible-Equity has ranged from 6.73 to 18.31 over the past decade. While the company's 10-year median is 12.97 vs. the industry median of 13.52, AIA Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Insurance company?
The median Return-on-Tangible-Equity among Insurance companies is 13.52, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AIA Group's current Return-on-Tangible-Equity of 19.37% is 43.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AIA Group and its competitors. For the Insurance industry, the median Return-on-Tangible-Equity is 13.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AIA Group's current Return-on-Tangible-Equity is 19.37%, which is 49% above median its own 10-year median of 12.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AIA Group stock overvalued right now?
Based on GuruFocus' analysis, AIA Group (AAIGF) is currently considered Fairly Valued. The stock's GF Value™ is $9.78, compared to a current price of $9.09 — trading 7.1% below its estimated fair value. The current Return-on-Tangible-Equity is 19.37%, which is 49% above median its 10-year median of 12.97 and 43.3% above the Insurance industry median of 13.52. AIA Group's overall GF Score™ is 61/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For AIA Group (AAIGF), the current Return-on-Tangible-Equity is 19.37% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AIA Group (AAIGF) Overvalued in 2026?
Based on GuruFocus' analysis, AIA Group stock appears to be undervalued.
The current stock price of $9.09 is trading 7.1% below its estimated GF Value™ of $9.78.
GuruFocus considers AIA Group to be Fairly Valued.
Key valuation signals for AAIGF:
Return-on-Tangible-Equity: 19.37% (49% above median its 10-year median of 12.97)
GF Value™: $9.78 vs. price of $9.09 (7.1% below fair value)
Industry Position: 43.3% above the Insurance median (#201 of 499)
No single metric tells the full story. See the AAIGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Headquartered in Hong Kong, AIA stands as one of the largest pan-Asian life insurance providers, offering a diversified portfolio of products spanning retirement savings plans, life insurance, and accident and health coverage. Formerly a subsidiary of American International Group, the company spun off and listed independently on the Hong Kong Stock Exchange in 2010. Beyond individual customers, AIA also delivers employee benefits, credit life, and pension services to corporate clients. With operations across 18 markets, the insurer serves more than 30 million individual policyholders and over 16 million members participating in group insurance schemes.
61GF Score
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