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Insurer AIA launches $10-billion buyback as new business value rises 22% -Breaking

by Mike Robinson

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© Reuters. In this December 4th 2021 illustration, the AIA Group logo was pictured on a smartphone facing an electronic screen showing the exact same logo. REUTERS/Dado Ruvic/Illustration

(Reuters) – AIA Group (OTC) Ltd launched a $10 Billion share buyback program on Friday and declared a greater final dividend. The new business value jumped 22% to 2021 due to strong growth in markets like China and Hong Kong.

The value of new business, or VONB as it is commonly known, was $3.37 Billion in the 12 months ended December 31, compared to $2.77B a year prior.

China and Hong Kong were responsible for approximately half the global business growth. The top contributor of VONB growth was China with 14%, while Hong Kong saw a strong rebound from the pandemic.

The buyback plan was announced by the Hong Kong-based insurer due to improved operating conditions.

Lee Siong, the Group Chief Executive Officer stated that “the share buyback represents capital we have accumulated over time and which is surplus to our requirements.”

The final dividend was also announced at 108 Hong Kong Cents per share. This is 8% more than the previous year and brings the total 2021 dividend up to 146 HKcs.

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