Home » AIA plans to repurchase $10 billion of common stock over the next three years, raises total dividend by 8% last year

AIA plans to repurchase $10 billion of common stock over the next three years, raises total dividend by 8% last year

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Original title: AIA plans to buy back $10 billion of common stock over the next three years, raises total dividend by 8% last year

Every reporter: Tu Yinghao Every editor: Liao Dan

On March 11, AIA (01299.HK) announced that it had approved a plan to return up to US$10 billion of capital to shareholders through the repurchase of ordinary shares in the open market over the next three years.

AIA said in the announcement that the share repurchase plan represents an accumulation of capital that has exceeded the company’s needs over the past period of time, which has taken into account the pressure on the capital market and the retention of capital to achieve strategic and financial flexibility. The share repurchase program enhances shareholder returns while allowing AIA to retain its financial strength to continue investing in significant growth opportunities available. The share repurchase program will be funded from AIA Group’s available capital and cash reserves. Shares repurchased under the share repurchase program will be cancelled.

On the same day, the 2021 performance data disclosed by AIA, the value of new business increased by 18% to US$3.366 billion; the annualized new premium increased by 6% to US$5.647 billion; the profit margin of new business value increased by 6.3 percentage points to 59.3%; Profit increased by 7% to US$7.896 billion; operating profit after tax increased by 6% to US$6.409 billion.

Li Yuanxiang, CEO and President of AIA Group, said: “AIA’s Mainland China business will once again be the largest contributor to the Group’s new business value in 2021, with salesperson productivity recording very strong double-digit growth, driving new business value (at the same rate). Benchmark calculation) achieved 10% growth. Although the number of active marketers fell slightly in the first half, our various initiatives successfully led to a significant increase in marketer recruitment, and the marketer force returned to headcount growth in the second half of the year.”

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“The penetration rate of the life insurance market in mainland China remains significantly low, providing AIA with significant growth potential. We see additional growth opportunities to help customers save for their long-term financial needs such as retirement. Our new range of wealth The management solution will help attract new customers and further increase our share of insurance product spend from existing customers.”

For last year, AIA successfully completed the subscription of 24.99% equity of China Post Insurance. Li Yuanxiang said: “China Post Insurance is a leading bank-linked life insurance company with a focus on providing financial protection to the general public and emerging markets in mainland China. This is an important step for AIA to continue to expand opportunities in the life insurance market in mainland China. “This investment complements AIA’s strategy of focusing on middle-income and affluent customers.”

AIA also announced a final dividend of HK$1.08 per share, with a total dividend of HK$1.46 per share for 2021, an increase of 8%.

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