AIA logs lower FY'20 net profit YOY as new business slumps

AIA Group Ltd.'s 2020 net profit attributable to shareholders dropped to US$5.78 billion from US$5.98 billion a year ago.

The result in 2020 included negative short-term fluctuations from the Hong Kong-based life insurer's long-term assumptions for equities and real estate of US$406 million, compared with positive movements of US$305 million in 2019.

EPS fell year over year to 48 U.S. cents from 50 cents. Operating profit after tax went up to US$5.94 billion from US$5.69 billion in 2019.

Value of new business fell 33% to US$2.77 billion from US$4.15 billion, but the company noted that it is up 15% year over year in the first two months of 2021 and that there is strong value of new business momentum as COVID-19 restrictions eased. Annualized new premiums declined 20% on a yearly basis to US$5.22 billion from US$6.59 billion.

Investment return grew year over year to US$16.71 billion from US$14.35 billion, and net premiums and fee income increased to US$33.33 billion from US$32.61 billion.

Total revenue increased to US$50.36 billion from US$47.24 billion, although total expenses went up to US$43.07 billion from US$40.01 billion.

The board of directors recommended a 7.5% increase in the final dividend for 2020 to 100.30 Hong Kong cents per share. This brings the total dividend for 2020 to 135.30 Hong Kong cents per share, an increase of 6.9% compared with the total dividend for 2019.

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