AAGIY - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Yuan Siong

Good morning, everyone, and welcome to our 2021 interim results presentation. We hope that you and your families are safe and well. I want to start by thanking AIA's outstanding people for their dedication and professionalism, helping our customers navigate uncertainty with uninterrupted support while embracing new ways of working. The increasing demand for our products and new business momentum that has been building since last year has continued, driving our strong performance in the first half. I will now take you through the highlights. months financial we metrics. X all growth first key our the of delivered XXXX, in In power distribution VONB, by USD the XX% leading to AIA's our growth over X.X indicator, billion, product platforms. and was up of unrivaled demonstrating

strong very increases record growing and after capital highs, surplus quality These reflect X.X% resilience Both and disciplined in people supported Board free execution the our the shareholders' and and has remains operating EV declared profit increase our Our large of dividend. Equity portfolio strong. focused allocated an of in of interim our and of our generation. results growth strategy, in-force The management. tax underlying equity operating position reached financial model, our

are AIA. advantages Asia Our distinctive competitive geographical diversification for scale and across

of pre-pandemic see segments for of the basis compared XXXX As on reported Hong Kong. VONB on was all VONB levels our all than year. of slide, the also a our growth can higher of with like-for-like segments double-digit except delivered half you first last

in sales business and Our VONB largest Mainland to that the contributor China travel Hong to again visitors. grew was group's restrictions continue limit Mainland XX%. Chinese despite up the Kong by was in Mainland AIA to differentiated increased first XX%, customers ANP domestic have our from half. VONB at and Chinese sales our progressively, for the by AIA more total of Macau's to accounting visitors increased branch Macau than X/X

value. increase. and Agency we our across group. strong right of priorities achieved bank have Premier Overall, These record We shareholder in productivity Our in and double-digit results partners results and excellent and extend collaboration have we growth focus our delivered very performance Thailand with that impressive achieved markets the track on the delivering to scaling leading and Singapore, the strategic supported of our demonstrate close our long broad-based local capacity other also Malaysia. a a

first By of use transformation quality upgrading we in and resilience rates the XX% higher. up Agency recruitment that performance analytics. we registered beginning seventh of service. month, an consecutive initiatives modern unparalleled half. our through efficiency, One strong XX% in Since superior technology increased restrictions ease to Agency, working. greater growth change over of in agents productivity our clear. in customer Integrating agents High active all the social training again ambitious systems, of compelling Table once with globally reinforced adoption span generation, to for tools #X Million At the group's were ago, the our digital of and have we even new million marketing platform year drive named the announced standards XX% significantly, customers fully purchase digital a The and Dollar the I Round increase year-on-year results, scale step our was digital technology, have use heart our movement VONB. Last and from from of raises leaders, have is our generating led the and year agency ways members. value a our Premier our and powerful AIA's VONB many of were as business company with growth the contributing chain and ever by enhanced greater and connectivity very the is pandemic, strategy. strong architecture of and strategic for new media excellent entire over has Our lead the of reinstated into our leads to engage created and X markets. tools

more of in than technology, now our the industry services and our We cloud adoption with hosted are cloud. infrastructure clearly outpacing the of global XX% financial rapid is

every enhancing at of pace analytics major and aspect of XXXX. intelligence in artificial advanced also has over business use our Our projects, with XXX

nearly We all and within for the customer origination resolved from Nearly methods. policies business and our through have of with of first all across payment critical majority to inquiries claims fully and all are payments. are new across predominantly and service, to intervention. accelerated accuracy no customer and processing are industry-leading adjudication digital, new contact. payment are use entire customer of Speed group digital transactions are from the delivering the the XX% of journey, Submission end-to-end claims issued service digital need electronically and automated human

use analytics strong plans we supports on available and acceleration unique to disciplined the execution progress us achieve to China. the China priorities, targets. the our in track through are Mainland of of wide-ranging of We making capture at growth and digital AIA are technology, expansion ambitious The opportunity to our our

advanced For efficiency faster tools our and Agency, drive adoption maintained. universal scale, of standards Premier our strict ensuring while quality digital productivity are

newest focused professional high-quality true Our this operations. drawing levels, to income new and successful generates attractive model our also holds on long-term careers AIA, for talent

replicate sustainable Our our in geographical delivers as receiving demonstrated approval continued X just growth at already province by and Since delighted within highly across existing expansion Sichuan to Hubei, digitalized has of model. I'm July in operation expansion We that platform the consistent year, making excellent results our XXX% prepare initial we last CBIRC, the are for of highly granted speed. our and we next strong subsidiarization all geographies. as from successful months have our ownership the GDP. our eighth progress by been and approval our we launched branch largest

partnerships. strategic While our have across our investments enhance on and to is capabilities we growth organic markets, business financial strength primary all focus and of our through

further increases customers. in It with retail in China has investment XXX in Life market. distribution network financial outlets opportunities insurance million than and financial China Mainland life access our nationwide to the retail growth enormous Chinese the largest the XX,XXX more Our exposure to Post

channels AIA enables segments customer capture that distribution investment the highly AIA from value for potential to creation Our complementary to China. are substantial and

Area. Asia X.X loyal more in Greater customers East with We in and Kong of harness the to Bay Hong our XX-year us help Hong and us prospects additional to giving launched Bank China, Kong have million than also exciting capabilities Mainland of partnership access the exclusive

fundamentals continue bring partnerships opportunities, models Tiki, Together, distribution, than to alliances we TNG and profitable in details digital we e-commerce our our potential This, figures have consistent executing X performance. more you that our we best-in-class next-generation growth experience, new in dividends across distribution our demographics partners. are markets. and business advantages product value. usual Vietnam's these with turn, drives and and surplus add included higher e-wallet; Today's new million leading geographies, through XX extending take generation New and largest ever-greater customers strong of right these have reflect By record to the deliver will we Digital, in delivered headline growth yet retailer. the track again. Recent as and financial target free Malaysia's business. strategy platform Garth demonstrated our form shareholder outside customer of the now competitive

Garth Jones

and all Siong, continued key Yuan good with growth our AIA financial business financial and metrics. Thanks, has everyone. morning, across delivered momentum strong a performance

more Let through first compared me The you with results VONB $X.X group billion. of XXXX take of strong now the the delivered to than growth in half detail. very XX% more VONB like-for-like at the segment broad-based growth across our group. basis performance of in the performance underlying level, resulting XX% a reflect growth better where on reflects shown appropriate. The To we've

markets very from to the AIA withholding tax and Southeast group customer accounted unit-linked VONB. the from is reflecting VONB the pre-pandemic Kong year, group's Asian XX% by mix VONB a start segments also quality reflects as grew delivered excellent that proportion our of increase and from while VONB strongly of excellent our Thailand last strongly the to XX%, of XX% by X cover our Hong allowing impressive Singapore Hong contributor of was domestic by with largest July for China XX%, applied and and in Malaysia force. an Hong VONB protection and segment Following new fastest-growing year Kong. higher remain by posted predominantly outside close Kong's segment growth half VONB grew a substantial made China XX%, business up XX%. the The group agency same growth products. levels to Mainland up grew and significantly for aggregate. This

of reserves $X contributed X.X unique on many foreign the shareholder double-digit new first before These Positive COVID growth of translation and with the ongoing delivered our you movements performance. VONB slide, billion attractive $XXX Other group in of points rates reflecting VONB compared and business was year; with despite EV The new our movements growth billion last of for volumes. portfolio strong this a is dividend million, by highly in included diverse the our VONB up exchange of in market the half. capital Equity segments unallocated quality in products future XX% VONB operating increase continued launch demonstrate capital $X.X effect see assumptions factor of supported $X.X future return in Equity negative shareholders. doubled successful year-on-year, our XX%. million in a reportable to $X.X like-for-like to was in product of the first increased of percentage growth the final our Thailand. EV a business, to XX% strong capital all and the VONB of expense basis. XX% resilience billion which is confidence to value businesses, of high-quality accounted payment overruns, half economic AIA's and reduced and major and shown As deduction in Protection increasing and and sustainability for office in on XX% XXXX, markets, expenses. growth This products VONB a results business the new at acquisition recovery increased Closing restrictions deploy of further to while group's of a EV the mix positive present dividends. a margin, was operating of Very additional unit-linked distribution billion. an XXXX Strong us following $XXX an shareholder of profit for of can improvement of the from $XX.X enable group positive by billion. Markets supported record shift from in variances after

to trends market to time Our EV which out smooth yields methodology over volatility spot assumptions short-term uses aim markets. long-term our in and

remain AIA short-term from volatility. our financial immune capital movements, to see market is market not While resilient you sensitivities the results against can that

the of Last assumptions of a basis group changed for level similar substantial XXX discount risk we a in to including our premium rates, IPO. midyear. half, overall for the economic have that a at points the at We at the end than our year, first risk more allowance

However, and we've reverted to at assumed remain these previous December XXXX. those XXst our practice, unchanged from

strong outperformance a the We a significantly sustainable time, our financial consistent that AIA's above shareholders provided record than is added us will approach; X and see value EV using AIA of and IPO. our for a both our that track to value chart and AIA's higher. differentiator embedded a believe be discipline at our assumptions over our remained $X.X these, comparisons rates assumptions. embedded of of assumptions end market the more has many of Under years. for helped can billion than have also has value more market-consistent European on methodologies: deliver operating from first, $XX alternative June, prudent second, the creation You of since were basis. value over The Equity We've long-term embedded key reported billion

reported bases. prudence by over reinforce methodology our substantially of XX% confidence the demonstrate value Our would increase results on embedded more These also VONB long-standing time. than and both

X%, new exceeding billion. The China normalized last exceptionally the positive compared to our lapse increase insurance Underlying strong earnings. performance $X.X China's after Australia. at increased was sources Now from AIA for new stable strong earnings. drove business investment in with group's in Hong we levels profit withholding the adjusting tax AIA claims operating tax returns. XX% disability effect supported was from high and negative Malaysia, Singapore quality earnings to IFRS billion Strong as Markets' was by X% withholding and in and business the year. to tax. by the Kong lower while experience Thailand's both low OPAT XX%, equivalent OPAT, half. X%, increased first excluding broadly Operating OPAT of claims growth was policies growth experience offset moving $X very Other of higher delivered effect remained by margin increase highlighted of underpinned XX.X%, X%

group segments the As Southeast with mainly diversified, geographic well mix VONB, OPAT our the covering is of XX% producing X the with Asia total. of

the Our which on of the writing in-force our our savings premium additional with that of resilience growth. combined predominantly insurance business, solutions, protection quality provide real to long-term earnings regular of are was meeting first AIA's premiums and sources and high the our portfolio fee-based, customers. underpins our providing our XXXX, future strategy focused earnings of large diverse book. consistently XX% TWPI half has geographically products of needs affordable from In

our since of added to reflection clearer treatment delivered more a strategy allocated shareholders' equity tax than the OPAT. growth change IPO. drivers has on annual double-digit the bonds. after record disciplined Our of the and IFRS of $XX profit Shareholders' underlying in looking consistently of accounting focusing improve track portfolio allocated quality equity compound provides has value of strong billion a to the equity before in of Operating

more than $XX.X movements than in as investment to shareholders' averaged these of billion, the shareholder more very After market $XX.X equity the small allocated out equities you XX% While over in from cumulative time. volatility return has profit, can compound annum short-term dividend value billion. see fluctuations causes by of per movements, net payments increased have

is the Insurance reflective to strong the the and will taking consolidated approach We've business. end the our AIA of of to capital a risk-based The the with adequacy over as billion regulatory apply solvency XXXX, been measure of that Kong. our ratio Kong notes also principal engaged economic a regime formally capital of across more eligible be Group the likely now formulation capital ratio Hong constructively hence, XXX%. manage increased view an Finally, a requirements to capital fully since based we to summation businesses. cover approved in half new existing very new senior is our the closer regime and the minimum cover position, regulatory LCSM $X.X of Hong capital of way first group's Authority Including on of dividends.

on As new our strong a result, this capital regulatory we anticipate will very that basis. position remain

be engaged the will to XXXX, rules year. date under to disclose our industry reporting in fully still Hong RBC with is early the position in by the to this first the believe expect Subject we end developing And results. We for the Authority annual Insurance capital that finalized of adoption. effective plans be Kong Kong in while XXXX our we intend finalization, Hong

details We also our further management provide capital intend to plans. of

Since and remains generates such ability increased movements. dividends. focus billion of This that priority billion. quality, after to AIA's our demonstrates flow. to reinvested differentiator earnings capital $X.X in Overall, and the stable free progressive free our invest sustainable through we Underlying and a important dividend balance and into an cash first our know, in business new half. $XX.X ensure high underlying prudent and With economics, new maintain surplus $XXX the we payment business free that business new consideration financial our cumulative conditions, market growth reinvestment market prudent, capital taking and is $XX on AIA. IPO, generation fund profitable needed was million business surplus billion you support stress capital As opportunities significant flexibility growth sheet to policy. to the free positive new generation from strong surplus in growth, shareholder a for We gained billion $X.X significant surplus close attractive

inorganic results our and In in dividends. dividends XXXX. of drive over new net into shareholder in prudent time, have and investment have and of taken invest VONB. further demonstrated a turn first This reinvested further we business billion, generating have us $XX again to of in value. half growth growth, the cash, generation to allows in in of clearly supports selectively this Over maintain of of business previous progressive been over free balance which opportunities We in $XX.X amounts the $XX increasing business, we new profitable pay sheet paid has and surplus new years billion advantage billion aggregate,

results compound is increased with capital in annum by surplus has insurance of the line future opportunities declared and across dividend dividend the all financial growth and on equity other shareholder delivered a group compared delivered has and basis group half share. a free the of XXXX of to X.XX a set We financial believe of segments surplus XX% HKD first increase levels than growth per IPO, segments half pre-pandemic with balance all position Board in of X.X% the allocated our of first annual LCSM of significant billion group. strong reached AIA's for and shareholders' growth in since strong of continues $XX.X growth prudent, the metrics. has in conclusion, in also the the the X.X% in opportunities by per follow Kong. allowing The with higher our our key established, very Equity ratio. increase VONB and another stock XX%, AIA EV progressive in XXXX, a financial delivered has Board reflected of and was highs, substantial that record generation double-digit reportable sheet. has dividend. Our up sustainable VONB for the combination AIA's In further of was all the increase free XXXX. like-for-like rare industry. dividend than since VONB interim growth and cover flexibility our Board policy, The strong to in and further declared is interim growth both of Hong our our

to Our cash of allow and our that once sustain us growth, results the a I'll deliver to long capital Siong. now time hand demonstrated and to Yuan will come. strong consistent performances our again to ability to earnings, shareholders attractive have across financial back for returns delivery

Yuan Siong

to with advantages grow Garth. opportunities great you, value. Thank and shareholder competitive company significant AIA is incredible a

same as and remain of resilient, across Asian world creating trillion, levels the hit markets As the new the GDP rest economic growth of you see, combined. unprecedented cumulative XXXX, can AIA's By to expected wealth. structurally is $XX strong will

spending for this step what classes. so AIA size billion. the increasing resilient as absolute immense the and middle rapid placed long-term many COVID-XX Asia and is is trends wellness best to has join of of change increasingly health in the rising top forced a for opportunity. where and affluence As compelling population mind class capture to a set potential consumers. incomes is And this AIA life with this care population total and by billion on rise structural financial compounding XXXX of generates populations makes growth, our to protection, of happening. these people for economic insurance X.X life and Across of the demand insurance brought health footprint, The of insurance and for X.X the accelerates middle is acceleration rise, by and Asia,

outcomes than our research recent close first more insurance for Since people of for capabilities. our the AIA in consumers for using important that meeting and in increase the and beginning XX%, products, pandemic, VONB XX%. digital than protection Vitality-integrated shows the and our that Our exponential a become greater There X/X been XX% an of more has of more have has seen of we needs. for protection half accounting improved VONB agree increased demand customers. growth health has long-term delivering than more savings by from online to products

spike has rapidly. digital initial levels April sustained been engagement usage XXXX, telemedicine in continues an grow to Following with at and XXx applications health pre-pandemic

relevant. competitive into aligning of structural, and with drivers drive strategy not Through well helping Premier purpose our the Our AIA's apparent, advice billion and high-quality growth remote never building pandemic. Longer, has protection remarkable been been has half more our first future. region, than strong Healthier, sales advantages new profitable live wellness social the services using need that The are Agency on people the economic business for to our structural never growth products, did more $X.X the and of in record in more completed before health and track the and exist capabilities Lives we Better

insurance will through ASEAN Indonesia X/X population #X significant me potential and enormous opportunities these growth to starting growth see are Malaysia X.X take Let VONB. the and ANP ASEAN. with exceed economic we Singapore for Today, AIA We middle a by markets. by in group's with substantial our available has on contribute of history ranks you strong and low class billion the our each Philippines, together capturing of basis, given now urbanization how XXXX. in a that regional X the see for across AIA scale AIA businesses Vietnam, Adding Thailand, markets. long total penetration,

as record. our partners. We have with continues our a and that execution digital strategy leading bank AIA Agency and scale leverage deliver operating track further we of Premier proven strong ensures Disciplined models to growth our

Our have offset us digital in without compromising quality. disruption. agency help tools enabled These recruitment accelerate also to tools

While the position insurance the to class our are many the are of and very across young, of to population exceptional double age levels opportunities seize population measures the we XX, compared and group. Rising increased age of in with is more within that under from Half driving pre-pandemic a next working confident to VONB world's levels be XXXX, and markets, build India demand, Indian. economic care will enormous for X is XX% X tightened and AIA in health gathering By with the population our years, speed. life on to and growth expected levels. delivered low another middle strengths arising size than are unmatched. billion. wealth I'm penetration costs is India strength rapidly combined strong prime our The COVID-XX opportunity containment ASEAN. presents growth long-term educated urbanizing of

joint distribution differentiated multichannel with Tata strategy. Our focused venture has and highly a

significantly most model across in number in Premier grown and disciplined success agents making in are replicate and results the other the productive And vast aim We execution leaders Leveraging our we in the Asia, markets. quality, India progress focus we to as market. digitalization of scaling have strong agency expertise our our in Agency agents. AIA's on

pioneering have open use analytics experience, group's includes success brokers partnerships. digital partners. technology, seamless of delivering our multitude connectivity leads partnership a a We driving a of customer to approach and AIA's the which diverse best-in-class and in leading digital banks, architecture and business Tata

differentiated has product leader protection. that strategy multichannel strategy distribution and AIA in the high-quality market proud has Tata Our strong our retail delivered growth, incredibly made I'm

lockdowns, and and tools faced remote the new and cases online growth wave resumption in first of of a continuity enabled India business COVID-XX the half. our Even as

the for Area. life Kong have in meet exciting. and The the tremendous in AIA for unrivaled We so outlook has and and capabilities insurance journey Greater insurance health made far, life incredibly is progress the our large are closing the and aging comprehensive urgent of affluent unmatched for our population these expanding need advice retirement to product gaps Agency and and in provides Kong. protection in across that is mortality, AIA's suite. Hong Hong long-term in our ability growing India needs needs through Premier to high-quality Bay on health meet

agency MDRT has our is XX% AIA market-leading company MDRT Hong world. Our of the #X agents the registered, Kong and in

As the And of new there and ownership Area, the large Hong we in further province. history is in for and Macau. the course, in one The look our advantages with of operations, fully strengthens foreign among of business GBA. cities partner of growth, middle-class AIA Asia AIA Bank insurance economic of of combination and AIA is Guangdong agency new given across the in Bay dynamic distribution to educated in a for competitive our the the penetration largest this as networks to and we unique benefit GBA a the growing ranked Greater Kong strategic low is prospects X top XXX% from enabling the addition region. are growth East leader huge AIA's population. potential a banks long recent with shareholders superior highly the from

to positioned prospects ideally available to the are exciting businesses our evolve, leverage us. regulations As

effects strong the track for annual that pandemic, the XX%. since China, XXXX, with has delivered our can compound where been performance of we record in itself. across Even speaks our broad-based growth Mainland see geographies. Finally, VONB you of have Year-by-year, our

of double, have and strongly new cities grown cities. expansion are long-term to where into headroom middle XXXX, market, continues our Guangzhou our economic increasing prepare also China's continued growth across presence. new are proving Premier new in approval in for progress geographic of Hubei. our launch the before cities consumers, we have accelerating drive Shanghai, Shenzhen, will earlier, deepen regions, Sichuan the and recent by with target its China ability I expansion operation present protection. further X rest of followed big provinces By rapidly, demand Our to as even in class said to the we for huge our savings province, Mainland the Beijing, into Suzhou while providing new Agency grown replicate our expansion the we AIA's

million as can more strong cities expanded we The increase the our our model of our big VONB outside new Agency Premier $XXX agency left, On into within these X In generated power higher our results they and our our the cities XXXX, in model, and impressive combination generated powerful and months in a X from of growth first new We by just you management see than digital to X. tenfold of VONB operations, tools ahead. continue from scalable we our each years. operating supported city, incredibly successfully replicate model. established productivity

into market Xx. our potential target increases we provinces, new As enter

than and to at its our results. AIA opportunity new differentiated Agency Our AIA China presents built potential recent AIA's is XXX come delivers from for more million capture China model us. extraordinary our sustainable million to approvals China Premier add target other with to strong provinces. customers With the more that core, Mainland XXX

and Our agents. attract, the income, average the agents retain earn Xx as they more develop best proof enabling and powerful are our industry us model, productive than local Xx successful as of average. is the This to

years. and drive digitalization and with innovative propositions, and we productivity, of standards strict expand. and scalability, maintained health difficult-to-replicate And AIA's levels quality that our integrated high enhanced our efficiency experience leading as customer are Our and allow ensuring confident execution differentiated for growth growing ecosystem, needs strategy disciplined that will long-term meet savings to our the our many continue of us protection customers I'm very wellness and to deliver as evolve. they

The from Asia. foundation sustainable ability the all of profitable our AIA's heard delivery group's of and of surplus dividends. and the across track of tremendous As will extend is driving the strong opportunities and to underpins and superior execution you consistent prudent, strategy capture progressive free record financial our Garth, our earnings, generation discipline growth, strong

across growth company AIA is the have the life We powerful of for world shown I drivers in the Asia. insurance. most right As markets attractive leverage to you, operate in the structural

a Asia focused growth our all are substantial and diversified We business markets. have high-quality, in XXX% with on opportunities

clear growth am the will focused confident our Healthier, we delivering ambitious. through Longer, is of Lives people strategy while Our Better well and future. execution, value purpose into live And and achieve helping I millions shareholder profitable of

Lance Burbidge

I'm We'll and Yuan will this the teleconference. with Garth. Instructions]. Chief move by be session, Relations Officer. me obviously today, Burbidge, conducted now we to and Q&A Together have Siong Investor [Operator Lance

other and also have Chief our We committee. members our Executives regional of group executive

take please we're that, Operator, the Q&A. with start to questions. your ready So

Operator

Instructions]. [Operator

Our Jiang Stanley. at first question comes from Morgan Jenny

Jenny Jiang

questions me. from Two

First make was talk is market in we well. agents very measures still some growth I high market that X on coming and of else? There local for very first We've details achieved what's can strong a operation terms as to in Maybe the just strong us to the is as little this before. we're of down Especially, are to challenge your months. plan next update Kong all, I and Hong this except management of might all bit want XX to give Kong. in be segment? Hong perceived Maybe cost about markets still growth the Macau stabilize saturated a very sure bit us the a Kong give think more seen Hong a Anything little happy. driving the taking. in because

question for second China. course, is the So me, of

we especially can we did peers? very very your very probably slowdown with the everyone China resilient experience, Siong ask, long-term I'm sure on maybe given on you increased I in market us and I growth what Post know know past Life. view Can prospects. well focusing China's was outperformance impressive. investment your industry and so share this Yuan local and is differently China, amid think is from very, we

So very we're, about China positive as apparently, well.

the there's before. concern you segments? terms that? all is slightly that agree I with saturated for in product are some getting me. think illness critical That's segment What other big than popular Do opportunities of other

Yuan Siong

I'm Thank set Okay. you, the with strong of results. pleased Yes, Jenny. very

financial execution think and of and focused technology I by capabilities; digital model, and people; of our best-in-class analytics operating the our our resilience demonstrates very our quality is this underpinned our our the disciplined management. which of strategy;

segments our levels. all we demonstrated, as pre-pandemic compared in think to I achieved growth

also But with we significant Hong you in in pleased result We also segment. in I'm growth pointed our We growth all the out, Kong. Kong. the achieved except, achieved Hong very that segments domestic as achieved

borders have MCV -- in opening from we the the the to future, closed come Macau we that, Hong with over to Kong. back. hand with China. know, talk a you more about that Mainland the borders As Jacky what I'll that in will the remain observed believe bit And business

Jacky Chan

domestic Hong grew Siong. Yuan you, by in to to will year I Thank Kong first that, the compared half, XX%. this in say like year Yes. last and segment fact, grow would

leader MDRT registered Macau, year. of last have In Kong fact, in of in Hong XX% the Kong Kong. We X,XXX member force our in has year. half, the would compared the over product sold and opportunity to Kong agency we Actually, clear say Hong agency in Hong a first tap a and more protection. Hong I into this protection this year we Kong, actually, ranked agency combining in is market also Hong agency, #X the MDRT. It lot really

In X-X fact, scheme VONB double our digit. insurance health our grew from

strong double compared last year. Vitality-integrated digit Our grew product to VONB from

would very agent I increase we the say double-digit of has this in half to year. also like in recruitment that and the our been first So registered momentum agency Kong Hong strong,

Yuan Siong

contributor the strong Mainland China, VONB first our results very saw, VONB. a we on grew achieved as China. from think half, China like-for-like you our On I And remains largest to by basis, XX%. in

on driven very quality. focus is by distinctive and our Agency unique this think I Premier highly our model,

headroom expand because in of presentation, all our unique provinces. agent, there's these enjoy terms have -- opportunities see And Mainland across significant -- as that active new of in that agent, our in in further position, existing China. showed per will we demonstrated our able I existing in in activity we we low. the provinces, strong have will And Xx. by showed our addressable VONB income we be Currently, to existing to the we expansion metrics, in grow territories there's We in remains as we all our per provinces a opportunities. our demonstrated we further market lot as very very, think As the franchise ratio, presentation, of penetration quality a

opportunities. about think very we the are I So excited

China. coverage. way level obviously, a [indiscernible] The of cost the think this Mainland you insurance these basic in low that all I -- about promoted mentioned has I in been actually very health provide products see these

really demonstrated And needs insurance buy the class affluent during has middle and the higher -- even Our coverage, market. the of of the I Premier model very first Agency XXXX. of of this segment is half the at the improve more that believe something in fact, is population of targeted of highly these been will and to the -- products levels low-cost propensity the that popularity

Operator

Thomas comes Sachs. next The from at question Goldman Wang

Thomas Wang

the If bit. a dive, more than on to I deep we digging ask there's agents. XXX results. see The on Congrats can Sichuan China province, little

what that whenever years compared is that's how new sort of X Tianjin of pace Can to we you're give of a of you these the X Tianjin, of XXX some Shijiazhuang for new about from now talked to X assuming sort -- Shijiazhuang, because how see XXX but branch? on is to that And about like a previously sort which the you doing I'm update to kind plus contribution Chengdu, in kind So us of on agent, sort level. fast expansion slide city to very get of on that from and open expansion Chengdu relatively I color small. us branch also, thinking

mainly that's Shijiazhuang. Tianjin assuming I'm So and

the of the number bit Hebei there or, province? a update in say, agents pace little So of expansion maybe the on

Yuan Siong

the pleased very with our Sichuan of launch preparations and I'm the branch.

really branches. the of preparing a well-oiled of that approval did to we And within for Sichuan that demonstrates important the job. for able branch, -- branch team very a X the from launch we new Sichuan very And it preparing for will the fantastic the and start CBIRC us. proven the months think be have I for model fact to were this

we position opening Hubei think got recently regard years, and and the a our position continue approval a CBIRC terms can are for have regarded over say in by Mainland also the efforts in very -- well relationship We unique and the China, progress is our CBIRC And in have accelerate And quality well, expansion and that constant the very very we in of more the across more in it's AIA that the also operations. be to are China. our we we next we of on they branch. good I to I high a preparation very provinces. know, for are our -- very And be to up you a few in will As to prepare for track. with dialogue

subsequent So I'll we the far, able Sichuan pleased and that with more be Tianjin for to we'll Shijiazhuang. and over branch to talk and progress and hand very Hubei with so obtain be progress about to hope Jacky approval we will openings. branch to our launch the able with

Jacky Chan

you, Thank Siong. Yuan Yes.

Premier the of fact, In differentiation key China force. Agency AIA is our

new go So foundation. want a a whenever build to into very new a strong we we solid province, city,

agents together Sichuan XXXX, the already, university in in very for grew for we XXX of Tianjin, over have in have and we by our on business as half down recruitment. lately actually -- March And into whole, Sichuan, And until and happy see VONB lay of are we grow our to strong doubled. about of XX% So the and and a focus people. XX%, are Shijiazhuang We our went foundation strategy. popped agents opening number graduates. of fact, quality a late want the Tianjin, Shijiazhuang When them Sichuan, June, first we this we very since that active to

provinces to new operation, are standard join the expand able we cities. will continue new agent other we attract maintain to and we new to as into to our this quality and So continue high

Operator

from The at JPMorgan. next MW comes question Kim

MW Kim

if So questions, the I congratulations a very X at I strong of have set result. could.

to there down to Today, a The first, level. now discuss several the strategic priority. was pre-pandemic business is the the slide clearly

picture, the driver in lesson important business then journey months big the new it be what be XX My would question the strategy the next is distribution pandemic, great Would the also digital terms the in accelerate company's channel? from was the of India. the under And perspective? or to here? last So and discovery about for what

Tata the ask to AIA Life. want I So

policy based FUM on policy new the industry. per disclosure, local the AIA, largest So insured look Tata the the the have in -- life

the could you So country? the further capital more about outlook share a next deployment step, into please bit the including

Yuan Siong

Okay. Thank you, MW.

meet on we very priorities, strong consumers and we that XX% of COVID, what the showed Asia we protection on more -- through Now also our more outlook and their right? been our gone to touch first, through I'll living have say the of our become growth And for lessons years have strategic in plan we in the than pandemic. strategic they fact I have our in protection savings think, has encouraged presentation, aside to more and Vitality-integrated product the showed from we As And seen is XX% and put important savings VONB, great insurance in long-term sales. that increase needs. X.X

for and as some to very And presents we is this and insurance insurance, opportunities to life question China, think that -- the pandemic, will And very I'm The of changing changing in about to for We has insurance we structural is about convinced from really for a I one for a with the health have over have this right in clearly tremendous is that Bill in think hand consumer in the and AIA mindset So Asia. life the accelerated continue itself market rapidly talk enormous very in that region drivers very future. that Asia. mindset. health And be consumer observed India. ASEAN. in thing we these you really rapidly and focused very strong are India I'll attractive India. more insurance potential AIA is

William Lisle

XX% I regulations XX% now the for would the wouldn't expect, we the us one MW, I Thank, And in of recognize were what that opportunities any the we question. Look, positioned Siong. to stake you, comment exceptionally back to we're in with take the share you allow to our increase to in XXXX. give on will But Yuan as arrangements. India. can But coming first think India FDI years. Thanks, our partnership we of well

much results, strategy as fair has premised through think protection. through say strong on everyone there's our short-term COVID. multi-distribution that very on period, seen, delivered India focus our it's and to I But has been even challenges,

#X and strong delivered in again, exceptional an As you both will protection. that growth. array got in of partners We're that, agent mentioned, retail #X productivity, agency partnership focus and bank continue. we've also We're

XXXX partner, business on we a us, building as quality very give class us a focused X aligned age And the at the have projected predominantly billion is outstanding looking to opportunity middle of our of Tata, an affluent. and large population, by protection. As -- ahead under JV XX, a on partner, partner, it's

partner. outstanding an with positioned well opportunity, great So

about India So in very the excited future.

Operator

[Operator Instructions].

Our Kailesh next question comes Mistry HSBC. from at

Kailesh Mistry

questions actually. I've three got

one whether Post growth about total agents in agents is just you Life, over bit first in total active the China, a first Can in China On little the once of these? million and given around of the overall media it sales. this not on provide half? growth China integration, surprisingly. trends on The a it's the social talk into it completed, because same what both the and are have growth would value elaborate the relationship bit then the statistic you Second goes question prospects in little provinces can driving $XXX Singapore product distribution new What's business limited process? which led China? for in is AIA lastly, half? to color a you presence? you've just on for a first product those as basically could Malaysia more be has to normal And then around you the hopper the mix on business agency sort which of Is And

Yuan Siong

Post like Life? talk to about talk Jacky, China Maybe, China about And you and you Bill, can sim?

Jacky Chan

Yuan Yes. Siong. you, Thank

start about the in by and let agents force Post Life. So me our China growth talking agency China also and

half emphasized, the agency relaxed are in recruitment year, Premier series while activity, a pandemic all, a First is last in which on Mainland And lockdown, the I cetera, AIA strategy, as there and of was was differentiated so mentioned go a focus always strategy. a et all there agency the first China Agency agent China, after training, of to found controlled the the recruitment selection really in difficult fact, the quickly committed that the fact, is and in as online we COVID-XX situation agent online back And in we And the containment And they for year look are we into those and off-line. ensuring off measure more to been first first has activity well shift because agent, to half recruitment production case in recruitment China, year more the first online. in XX% training very notably, our half of fact, growth our increase per terms to for grow well we when many compared compared of the the had recruitment cetera. actually, compared our last stringent et and year. our requirement, increase number as China our to activity this first first active But of half fall And off-line, last agent by as career, agency active half those year. agent. in during of so half And activity in average X% productivity to has both of income last actually our per recruitment year.

vast China our speaking, Post to in of China is into Post I while as very overall mass is say, which an Post to -- existing of focus that the -- of AIA AIA want market, China. this penetrate affluent China really on to AIA high-quality continue the Agency Life, more and to complementary the AIA opportunity to the China affluent we us Life, And our mass Life China majority China. maintain would force market. investment emphasize big Premier I gives operation So

It key. customer China. complementary or in not the gives China Life actually, to larger where segment the it's into a in Post So AIA Mainland actually, or penetrate operate not, same bigger, province opportunity really us

Yuan Siong

Yes.

about Jacky China to force. Just said add agency the what on

in And the year actually of attractive that quality better I And and has working than average all they our full visit our the Mainland a constrained force market the strong is highlight the with of you But to in, market. I performance better to agent, China somebody and can city operate of agency they actually that one that our That and fact, for they -- in of really agents of meeting I'd the our many fact middle being class competitors, the China. segment targeting last quality our a more average demonstrated differentiated I China the the And means work freedom office income some the bit earn that of the in somebody is the China agency Xx are population. challenging. of the struck setting. point think insurance because also, agents by and reflected the much a offices if other income. been our fact compared much come like had first managers the agency of opportunity we working an this like as because see think because And force, the model, is the year, of the time income and affluent industry. agency they in have the taken performance in think, an by agents. -- lot I'm is the to agent, to it earn a our we much, of quite rest in And of who's to in be AIA don't respective of income the to compared I that that despite have

exploring very an market Post At we Now Jacky business and time, Post segment. to with Life's investment on from is China also benefit will China cooperation Post as have explained, opportunities allow Group mass targeted customer Life, the China Bank. us Post same China which

in of AIA also the presence cities or the we're the -- where in cooperation, products China's segment business appropriate this AIA where markets provinces of in. part in has as involved So distribution to or

William Lisle

social Thanks. marketing. for media the Kailesh, thanks question and on

I for the end-to-end, is digitally invest Agency bit, Premier Just enabled back to model. our stepping focus significantly AIA continue in think little a

we've tools our ecosystem right digital So invested. across

some of rates, driven resilience the has seen of which You've our really and Agency. Premier adoption the very business high the

of our got markets. capabilities submitted, we've now digital across XX% of XX% our markets, training platform iRecruit recruits of our XX% our digital business remote of new all of through So and over is recruited are all adoption digitally our across sales a digital XXX%

Officer. power that's helping giving Chief in So Marketing media Basically, our on extension own social and really being our of media is focused their you're own engage nurture an of agents integration the social digital platform community. them the prospect, their

it's rolled stages and Malaysia, early across Hong X leads million of ANP. Singapore, in India, HX: XXX it million generated look, very China, the you markets if X Philippines in rollout. So Kong. still out it's and And We've already over

In to have give productive you agents social again, our if stages. platform. in X Malaysia, are media COVID the still the Singapore, sales of simple over Just back And total very leads an points, XX% protection we generated produced XX% over early the and result the more it's and in where proof they're using we on of XXX,XXX agency outstanding HX, in in a that HX.

our empowering social So again, products. much a to engage very protection, opportunity media prospects early very Then be upsell protection to, agents It's they've cetera. to cross-sell more their unit-linked and environment et nurture use within products, still and the sophisticated got simple days. able their about and

Operator

from [ph] comes next at The question Michael Securities. Chang CGS-CIMB

Unidentified Analyst

It's Michael [ph] Chang here.

I in going well The other in ratios buffers the into attached more exact was regions, you just so it what launched first performance in, next it affluent feedback. to on what plus or Thailand? to to the more at requirement? to couple extent off I the question, the back, new more the could this that Why where results. Sichuan Yuan be taken was on geographical Siong that at what's maybe way seem is Can think, of -- it so Hubei impact, recall it back least elaborate of years China, year on can minimum announced recall it be taken criteria, unit-linked lastly, the unit-linked current going markets? Garth be to in looking Maybe positive for just or terms But on succeeded Unit-linked regions, has maybe XXXX, be without Because bit seem and this for regions And details and and expectations On out adopted, or it year. improved in is then basically some expansion? strong. negative next-generation back operates figures seems giving when was more to riders there's the what a long? more then. that the more question Second AIA in the a back elaborate terms to AIA the strong of looking performance only have preliminary it's be the of unit-linked the rolled over to full probably seaboard, very this But maybe I And [ph], at if direction Bill. RBC. impact? Appreciate a priority. is the surprise. maybe your terms of Is for of expanding a any, region it's proximity coastal to regulatory maybe

Yuan Siong

Bill, Thailand?

William Lisle

thanks XX% VONB Michael, question. of for results, initiatives as seen, that driving that. and strong growth the of you've saw Yes, number Thailand, we set very a a key was

As mentioned, sales of you unit-linked them. is one

tracking type across in need we've way, more Asia. very this and taken, As program, to you unit-linked which when be are mentioned, customers Singapore businesses that key more sophisticated a attachment change of out across -- more able the best products. to to by sell which with well be you force and these engage we able drive mix, high our full But back agency is FA and launched practice also from roll to time, is with rider Malaysia product the to trained continue professional confident and to the

Asia mix force. last we've -- our to strong also able across there's that Yuan new XX% And high driven, progressed to product that's represent in for agents too, just able remote were Siong's Thailand margin you attachment, But consumer sales months, for today, are the iSign XX XX%. presentation, of obvious sell And the our saw us protection, on is need research, to which, double-digit FA being journey as What tool remote we XX% our done the as unit-linked for market, see significant a awareness, hence, also sales. but we've total in advantage about investment-linked in protection as improvement digital our from much of agency as and of -- giving and digital X with to products, again, They seen higher reasons. be not our over in VONB. been total strong our a adoption So first our and a is rider Thailand distinct recruitment recruitment can us. we've to we've scale a the high you regarding remotely FA

Yuan Siong

we And have I think powerful Thailand. a name really brand in

AIA. in from I -- think actually policies up insurance to Thailand have with X/X been of come issued

in been XX what, recognition, name, our our So we've Thailand, years? brand

William Lisle

XX years.

Yuan Siong

Yes.

William Lisle

driving given of in that across Asia, that X in And all has We're as MDRTs, I for XX% very us also think growth are MDRT. through growth. in a strong markets #X different we Thailand,

Yuan Siong

RBC? On

Garth Jones

RBC on -- thanks, Yes, Michael [ph].

been the very the details remain be will The that in final HK approach. of We've more its be involved in to run an that, absolutely during more the do engaged unclear, in be I of result, solvency strong. in the been The rest quizzes. expect the said, new economic position Our position. under the the basis reflective business. clearer will aligned how we the better it the be strong. with And a actively With regime And our manage remains as will way position business. the dialogue. very be second and have but -- as current remain half. we we'll expect is We going issued will year we that final We've solvency it that the details clear

Yuan Siong

or -- will provinces which terms expansion. of by class municipalities middle in these priority Yes. launch. told we presentation, geographic market provinces also we And XXX new our identified that expansion, or we these will addressable more vigorously target yes, branch Hubei municipalities And our you our And million. be our XX in increase preparing have are on currently XX for China have new

equivalent rest that know in country all world. a we the think these China, I is of in midsized provinces the of the

opportunity about to us these excited very new to the provinces able expand are for be next we into So over few the years.

Operator

The Qi Daiwa. final Leon from question comes at

Leon Qi

results. Once today. excellent on have the set of I again, congratulations X questions

after business relationships follow-up China at Asia And in regional First or in with either within there how existing China we China question not our Life. be are comparable Life a capital models you second is operations? with comparable define Mainland I on a see it past growth your years? how Post Post capital a more would any on would China Post our Is heavy Life looking you current been the question And the few bancassurance China. success Post understand may model that given of has few is cooperation And your relatively China over management. in Life? years

Siong, years Siong, could of Asian Garth a LCSM level COVID Or after our the given ratio seems will terms basically -- the RBC? be X.X you and again. is region Would how for to across there biggest surprise, ratio Is few GWS? -- It be very in potentially RBC the also biggest What of question it X negative, AIA I could payout ago either for to be relatively Mainland see RBC under M&As through do a comfortable Yuan your just from joined And compared a just operations, to on either months? and Given the rest What when market inorganic the period since especially Lastly, and quiet over related Phase it more our are regulatory capital COVID upcoming you around AIA years? growth? it your positive comfortable when not. dividend with you solvency. or Well, we details you be level the life of overall exactly touched to finalized either expectation that have next actively which level in X.X is has be or changes year, some more currently revisit your your on of the to the your using years we on have the you Kong C-ROSS China, likely ago? joined difference impact solvency benefits group may Yuan ratio X.X solvency AIA or China, in would will insurance have started. Hong

Yuan Siong

investment did Post China On when the announced we Life, think with actually into Okay. of the a Life, extensive investors. I Post we Q&A China lot very

China. this you investment, this Post up So at Mainland this, They in Post outlets. most one addressing million China have a distribution to Life Post in targeted investment. -- know, financial China Group, and In Post access customers, market. is of the think which through have China a China good we mass Life. is Life, China XX% has the XXX I is the I as parent believe XX,XXX million will of -- mass really market And pick they Through Post XXX powerful very networks the

them in segment in in AIA middle to So core strategy Post extensive primary China licensing -- This is which the find targeted And China in affluent the investments, very very market. we the during case China China very Post allows focus for China in is compelling. growth cost-efficient the very a by us did which itself AIA investment allow the Post and our XX.XX% and and our and benefit value model China expand The the complementary at unique financials diligence Life very investing of remains with very Life, market. class a our to will we in strategy, the from the Life the has operating market. due rapidly mass manner. primary

a capital-intensive as Life and the the in less have Post -- margin Post Post Now not seen we portfolio about China China Life you of market efficiency also Life. portfolio shift And towards business the product and China China in new bancassurance just in talked more a in higher of but capital whole.

think through to are regulatory Life. I the approval still excited we will very growth our about going which investment, complementary highly China which I strategy. so this about much So give Post But China's is are AIA too process, overall, -- cannot we you information

Now on management? capital

Garth Jones

we yet we'll also Leon, the is our finalized. X assess not as unchanged. RBC I remains C-ROSS capital, on after Yes, X usual get C-ROSS statements capital, Along actually, Phase And -- our finalized. that position and said, on the with issued

priority sheet prudent after a to is stress. first balance maintain Our

the come again, good And since you've is of IPO. will VONB, organically, business the billion focus produced in seen talked VONB that's inorganic first in growth along and occasionally. XX% that where we The second be. half, our opportunities We about and to $XX grow growth

of shareholders. cash in look the particularly to value East our for so which Asia GBA. we about, the We excited saw and on in very to You then which half. always the ways And back can opportunity increase shareholders. in first Bank we're

billion You to yet. by strong are would year. remain though, we But will as the be saw another X.X% IPO. increase hopefully, of all the not of and position expect even the With that, to shareholders continued finalized end C-ROSS LCSM since We've in dividends to clear the of said, dividend. our both do that, back I RBC $XX.X

Yuan Siong

You the job asked CEO me Xst June about -- up year. of I took last from

X. talk in So we itself talent, strength have AIA very year that think something what's is about the people of surprises and you One the quite quality is I bench came AIA. I'll positive as really the strongly also my first me asked about and at in that across the the CEO

just really positive is to rest are segments. Asia of EV, but very contribution very significant China I the second growth all growing -- I is of these and the profit important, one The businesses we China our think AIA. fact to right? a actually pleasant, very is I we businesses, very that different So of of the think, VONB think a in diversified our engines operating and a the portfolio surprise have contributes and our contribute significant potential

the the business first a XXXX. -- growth in saw showed results half, in of set supported very a of first was very first you and as half the strong So really contributor important half, very a this this strong in ASEAN to new

Lance Burbidge

Relations. through Siong. Investor us for follow-ups, for Obviously, any thanks, and listening. then everybody, if Thanks, at And please to Yuan questions your have you come

and good concludes the have that a day. So teleconference,

Operator

AIA joining. to has Results you Interim for Thank come Ladies and an gentlemen, Briefing XXXX end.

AIA Group Limited (AAGIY) 17 Aug 212021 Q2 Earnings call transcript