AIA (01299) releases annual performance with new business value increasing by 15% year-on-year to $5.516 billion.

AIA (01299) announced its annual performance for the year ending December 31, 2025, with growth rates based on fixed exchange rates as follows: - New business value increased by 15% to $5.516 billion - After-tax operating profit was $7.136 billion, an increase of 12% per share - Shareholder's equity return on operating income reached 15.5%, an increase of 70 basis points - Final dividend increased by 10% to $0.14408 per share The group focused on high-quality, sustainable new business growth, driving new business value to a record high of $5.516 billion in 2025, with 91% of new business value contributed by protection and fee-based insurance products with no or low investment return guarantees. The strong growth in new business value was driven by double-digit growth in most of the group's markets. In 2025, the group's exclusive agency channel achieved a 13% growth in new business value due to an increase in active agents, improved agent productivity, and a highly attractive and capital-efficient product portfolio. Partnership distribution saw a 22% growth in new business value, with strong double-digit growth in new business value in bank insurance and intermediary partner distribution channels. Annualized new premiums grew by 9% to $9.484 billion. The new business value margin was 58.5%, an increase of 3.6 percentage points from 2024, driven by positive shifts in the product mix in Thailand and Hong Kong, and repricing of products in mainland China. The new business value margin in mainland China remained relatively stable compared to 2024, as the impact of repricing was partially offset by a shift towards dividend products. Lee Yuan Xiang, Chief Executive Officer and President of AIA Group, stated, "AIA achieved record performance in 2025, with double-digit growth in key financial metrics such as new business value, profits, and cash flow. With a broad base of growth, new business value increased by 15%, demonstrating the strength and diversification of our business. Excluding dividends and share buybacks, intrinsic value per share increased significantly by 14% to $79.7 billion. We have implemented a growth strategy to continue driving up intrinsic value operating return and shareholder's equity return, reaching 15.8% and 15.5% respectively. Benefiting from the compounding effect of high-quality new business, after-tax operating profit per share increased by 12% and basic free surplus per share increased by 11%. After deducting new business investments, net free surplus per share increased by 14% to $4.451 billion, reflecting growth in basic free surplus and a shift towards products with lower capital requirements." In line with our prudent, sustainable, and progressive dividend policy, the board has recommended a 10% increase in the final dividend to $0.14408 per share, bringing the total annual dividend to $0.19308 per share, a 10% increase from 2024. Following our capital management policy, the board has approved a new round of $1.7 billion share buybacks, including $700 million, equivalent to a 75% target payout ratio of annual net free surplus, and an additional $1 billion after reviewing the group's capital position. Despite continuing geopolitical and macroeconomic uncertainties, Asia remains the most attractive growth opportunity for the life and health insurance industry, driven by strong structural factors that support continued demand for protection and long-term savings from customers. With our extensive and deep presence in the region, and our relentless focus on strategic priorities to further enhance our competitive advantage, AIA is uniquely positioned to seize existing opportunities. AIA's strategy has always been forward-looking, keeping pace with customer needs, technological advancements, and market opportunities, allowing us to maintain performance across different market cycles. The outstanding performance we achieved in 2025 is a testament to its effectiveness. We are entering 2026 with strong business momentum, giving me confidence in AIA's ability to continue creating long-term value for shareholders.