Insurer AIA launches $10-billion buyback as new enterprise worth rises 22%

AIA Group emblem is pictured on a smartphone in entrance of an digital show exhibiting the identical emblem on this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration

March 11 (Reuters) – AIA Group Ltd (1299.HK) on Friday launched a $10 billion share buyback plan and declared a better remaining dividend as new enterprise worth jumped 22% in 2021, boosted by robust progress throughout markets, particularly in China and Hong Kong.

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The insurer’s worth of latest enterprise or VONB, which measures anticipated revenue from new premiums and is a key gauge for future progress, rose to $3.37 billion for the 12 months ended Dec. 31, from $2.77 billion a 12 months earlier.

China and Hong Kong accounted for about half of latest enterprise progress globally. Mainland China enterprise was the highest contributor to VONB, logging a 14% progress, whereas its Hong Kong enterprise jumped 37%, indicating robust restoration from the pandemic-lows.

Higher working circumstances for the Hong Kong-based insurer, which depends on its military of brokers, prompted it to announce the buyback plan unfold over the subsequent three years.

“The share buyback represents capital accrued over time that’s surplus to our wants, permitting for capital market stress circumstances and retention of capital for strategic and monetary flexibility,” Group Chief Govt Officer Lee Yuan Siong mentioned.

It additionally declared a remaining divided of 108 Hong Kong cents per share, 8% greater than final 12 months, taking the overall 2021 dividend to 146 HK cents apiece.

Reporting by Selena Li in Hong Kong and Sameer Manekar in Bengaluru; Enhancing by Arun Koyyur

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