#1HEALTHIER, LONGER, AIR BETTER LIVES 2023 INTERIM RESULTS PRESENTATION 24 August 2023#2Disclaimer AIA This document ("document") has been prepared by AIA Group Limited (the "Company", and together with its subsidiaries, "AIA" or the "Group" or "AIA Group") solely for use at the presentation held in connection with the announcement of the Company's financial results (the "Presentation"). References to "document" in this disclaimer shall be construed to include any oral commentary, statements, questions, answers and responses at the Presentation. The Group adopted International Financial Reporting Standards (IFRS) 9, Financial instruments, IFRS 17, Insurance Contracts and Amendment to International Accounting Standard (IAS) 16, Property, Plant and Equipment from 1 January 2023. The comparative financial information for the six months ended 30 June 2022 and the year ended 31 December 2022 have been restated under IFRS 9, IFRS 17 and Amendment to IAS 16, unless otherwise stated. Throughout the entire document, the impact from adopting IFRS 9 and the amendment to IAS 16 are included when referring to IFRS 17 figures. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information and opinions contained herein are subject to change without notice. The accuracy of the information and opinions contained in this document is not guaranteed. None of the Company nor any of its affiliates or any of their directors, officers, employees, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any information contained or presented in this document or otherwise arising in connection with this document. This document contains certain forward-looking statements relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. When used in this document, the words "anticipate", "believe", "could", "estimate", “expect”, “going forward", "intend", "may", "ought" and similar expressions, as they relate to the Company or the Company's management, are intended to identify forward-looking statements. These forward-looking statements reflect the Company's views as of the date of the Presentation with respect to future events and are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements. The Company assumes no obligation to update or otherwise revise these forward-looking statements for new information, events or circumstances that occur subsequent to the date of the Presentation. This document does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. No securities of the Company may be sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933, as amended. In Hong Kong, no shares of the Company may be offered by the Company to the public unless a prospectus in connection with the offering for sale or subscription of such shares has been authorised by The Stock Exchange of Hong Kong Limited for registration by the Registrar of Companies under the provisions of the Companies Ordinance and has been so registered. The information herein is given to you solely for your own use and information, and no part of this document may be copied or reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) in any manner or published, in whole or in part, for any purpose. The distribution of this document may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Throughout this document, in the context of our reportable segments, Hong Kong refers to operations in the Hong Kong Special Administrative Region and the Macau Special Administrative Region; Singapore refers to operations in Singapore and Brunei; and Other Markets refers to operations in Australia, Cambodia, India, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China) and Vietnam. 2#3Business Highlights Lee Yuan Siong Group Chief Executive and President AIA HEALTHIER, LONGER, BETTER LIVES 3#41H 2023 Very Strong Financial Performance Growth Earnings VONB OPAT $2,029m $3,272m +37% +4% per share Capital & Dividends ALA UFSG $3,288m +10% per share Free Surplus $16.3b After $3.6b shareholder returns EV Equity $70.6b Operating ROEV 13.3% Operating ROE 14.2% vs 13.0% in FY22 Interim Dividend Per Share 42.29 HK cents +5% Share Buy-Back $2.0b Cumulative $5.5b 4#5Unrivalled Distribution: High-Quality Premier Agency Excellent Growth in 1H23 Agency VONB ($m) 1,613 1,274 +27% 1H22 1H23 Increasing Scale and Productivity YoY Growth 1H23 vs 1H22 +14% Agent Income +10% Agency Leaders +11% New Recruits Note: VONB comparative is shown on a constant exchange rate basis ex-Vietnam AIA Differentiated High-Quality Model enabled by TDA #1 MDRT Globally since 2015 #1 in Mainland China #1 in Hong Kong #1 in ASEAN #1 in India 1H22 MDRT Qualifiers +49% 1H23 TDA Empowering Entire Agency Value Chain End-to-End Digitalisation 100% Capabilities across the value chain in all markets Al and Analytics Deployed at Scale Intelligent recruitment Training recommendation ■ Sales leads allocation to agents ■ Potential leaders/MDRT identification Digital Lead Acquisition +20% Digitally-sourced leads in 1H23 5#6Unrivalled Distribution: Strategic Profitable Partnerships Excellent Growth in 1H23 Partnerships VONB ($m) 328 +62% Extensive Distribution Footprint with High-Quality Bank Partners Long-Term Strategic Partnerships Leading Bank Partners in Local Markets | >80m customers 532 BEA東亞銀行 cíti Bangkok Bank BCA PUBLIC BANK VPBank ASB 1H22 1H23 Differentiated Model: Mainland China £>600m retail customers POSTAL SAVINGS BANK OF CHINA Highly Complementary Strategy AIA China: Affluent target market segment China Post Life: Mass market segment +38% Bancassurance VONB +165% IFA VONB Long-Term Strategic Partnerships 20 years Average duration excluding joint ventures Notes: VONB comparative is shown on a constant exchange rate basis (1) Digital leads from strategic bank partners (2) On an actual exchange rate basis End-to-End Digital Enablement BPI Commonwealth Bank Digitally-led Model: India AXIS BANK सेन्ट्रल बैंक ऑफ इंडिया Central Bank of India 1911 में जापके लिए "केद्रित" "CENTRAL TO YOU SINCE 1951 ALA CITY UNION BANK CUB DBS HDFC BANK IndusInd Bank 6 bank partners | >165m bank customers 25% ANP from digital leads in 1H23(1) Proven Execution >12x VONB growth since IPO(2) 6#7AIA China: Strong Momentum Across Channels AIA China VONB YoY Growth Gradual Easing of Restrictions Omicron Peak Reopening +29% YoY Growth AIA Premier Agency: Increasing Agent Productivity, Growth in Protection +17% VONB per active agent in 1H23 +22% VONB YoY Growth in Feb-Jun 23 +26% +22% VONB per active new agent New recruit income in 1 H23 in 1H23 +7% Critical Illness VONB YOY Growth in Feb-Jun 23 >50% Protection No. of policies in 1H23 3Q22 Oct 22 Nov 22 Dec 22 Jan 23 Feb-Jun 23 +14% 1H23 YoY Growth Excellent Progress in New Operations +36% Agency VONB +44% Tianjin, Shijiazhuang, Sichuan, Hubei and Henan Partnerships: Incremental Growth >3x 中国邮政储蓄银行 POSTAL SAVINGS BANK OF CHINA ■ 4% of AIA China Agency VONB Launched operations in Henan in May ~2x New recruits in 1H23 Partnership VONB BEA東亞銀行 Active agents Note: For 1H23 unless otherwise stated 7#8AIA China: Delivering Long-Term Sustainable Growth Differentiated × Premier Agency High-Value Customer Segment ✓ Compelling Propositions AGENTS #1 MDRT in Mainland China Sustained Value Creation CUSTOMERS >95% Persistency SHAREHOLDERS > $8b VONB Cumulative since IPO 2x Agent Income AIA China vs Peers #1 Brand Net Promoter Score >$9b OPAT Cumulative since IPO ALA 80#9AIA China: Capturing the Middle Class and Affluent Opportunity AIA Differentiated Premier Agency High-Value Customer Segment ■ ■ Full-time Premier Agency Quality recruitment Customer-centric advice • Compelling Propositions Fast-growing middle-class & affluent segments Growing needs and customer demands High lifetime customer value Leadership in Protection + Long-Term Savings for Affluent Segment VONB per Agent 4x Industry AIA China ~90% agents with college degree and above Middle class and above customers (1) 85% of ANP > 6 policies per customer Closing Customers' Protection Gap AIA Needs-Based Advice (NBA) Process Critical Illness Average Sum Assured 2.9x 91% of agents sold protection policy (3) >70% of protection VONB are Cl >50% Protection No. of policies in 1H23 75% Policies from existing customers via agency in 1H23 Private Pension AIA China's #1 long-term savings product in 2Q23 High Value-Added Services Integrated Differentiated Personalised > 6 years average tenure, experienced agents 2x productivity experienced agents to new agents Industry Average Before NBA After NBA AIA China Customers (2) Notes: For 1H23 unless otherwise stated €23 (1) (2) (3) Annual premium of RMB20,000 and above Customers who participated in the insurance coverage analysis in 1H23 Of agents who sold a policy in 1H23 60% Health & wellness and retirement services attachment rate Health and Wellness Retirement Education Wealth Management Legacy Planning 9#10China Post Life: Capturing Additional Growth in Mainland China 1H22 China Post Life VONB (1) +55% Growing and Enhancing New Business Quality >$1.1 b Shift to Products with Longer Payment Terms Driving Protection Sales Enhanced Productivity Regular Premium Critical Illness as % of Total New Premium Products ANP 1H23 China Post Life CHINA POST INSURANCE AIA Group's 24.99% Equity Strategic Investment ☐ 72% 83% 1H22 1H23 +47% 1H22 1H23 AIA >1,800 Insurance Planners deployed in 1H23 +10% Average Case Size 1H23 vs 1H22 Highly complementary strategy, targeting underpenetrated mass market segment Access to PSBC (2) extensive network: ~40k retail financial outlets, >600m retail customers Value creation via collaboration between China Post Life and Technical Assistance Advisory team Notes: (1) Shown at 100%, VONB is on China Post Life's management basis and is not consolidated into AIA's reported VONB or EV (2) Postal Savings Bank of China 10 10#11AIA Hong Kong: Excellent Performance Across All Channels AIA AIA HK VONB ($m) 681 323 1H22 +111% MCV 1H23 Leading Premier Agency Excellent Partnership Performance +12% 1H22 Domestic Double-digit VONB Active agents Growth +60% New recruits Notes: For 1H23 unless otherwise stated (1) By ANP as of 1Q 2023. Source: Hong Kong Insurance Authority and Monetary Authority of Macao Source: Hong Kong Insurance Authority (1Q 2023) (2) Agency VONB +82% 1H23 Partnership VONB 1H22 >3x IFA & others Banca 1H23 +62% VONB per active agent +29% New agency leaders #1 MDRT in Hong Kong and Macau #1 Agency in Hong Kong and Macau (1) Excellent Banca VONB growth BEA東亞銀行 citi IFA growth driven by MCV business #1 Market Share(2) 11#12AIA Hong Kong: Sustainable and Growing MCV Business MCV VONB +64% 1Q23 2Q23 Quality Business with Increasing Protection Mix Critical Illness Product Mix AIA (by no. of policies) 38% 33% 1Q23 >50% Protection No. of policies in 1H23 +5 pps New Customers (by VONB) 79% 59% +20 pps 2Q23 1Q23 Stable Case Size Average per policy 2Q23 vs 1Q23 Distribution Capabilities Scaling for Sustainable Growth 1H23 New MCV-Focused Recruits 3.7x Number ('000) 2Q23 Geographically Diverse ~60% of policies from outside GBA in 1H23 Mainland Chinese Visitor Arrivals (1) Daily Average in 2023 120 80 40 0 Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jul Aug MTD 12 Note: (1) Sources: Tourism statistics, Hong Kong Tourism Board (Jan - Jun 2023) and daily passenger traffic statistics, Immigration Department of HKSAR Government, as of 22 Aug 2023 (Jul Aug 2023 MTD)#13ASEAN: Leading Diversified Growth Platform AIA ASEAN VONB +12% +16% High-Quality Protection Focused Proposition Traditional Protection VONB #1 Ranked in ASEAN (1) Unrivalled Distribution Multi-Channel Strategy Agency VONB (2) Partnership VONB (2) Ex-Vietnam 1H22 +20% Others Par 5% 7% +15% +19% 1H23 1H22 1H23 1H22 1H23 Unit- 1H22 1H23 30% linked 1H23 VONB 58% Traditional Protection Notes: All figures are for Thailand, Singapore, Malaysia, Vietnam, Indonesia, the Philippines, Cambodia, Myanmar and Brunei in aggregate unless otherwise stated In aggregate across six markets (Thailand, Singapore, Malaysia, Vietnam, Indonesia and the Philippines) by ANP based on latest available regulatory data Exclude Vietnam, 1H23 vs 1H22 (1) (2) #1 MDRT in ASEAN Excellent VONB Growth +8% ANP per active agent (2) +11% Active new agents (2) Bangkok Bank cíti BPI 13#14AIA Thailand: Clear Market Leader, Consistent Execution Market-Leading Differentiated Agency Financial Adviser (FA) Programme AIA Thailand VONB ($m) 327 Leading Premier Agency 256 1H22 +28% 1H23 #1 Agency 40% market share(1) #1 MDRT in Thailand since IPO FA VONB 2.2x ALA Scale +18% FA headcount 1H23 vs 1H19 Productivity +49% ANP per agent 1H23 vs 1H19 Enhanced Mix 1H 19 1H23 #1 IC Licensed 65% of total industry agents (2) % of Agency VONB 26% 35% >90% VONB in 1H23 from Traditional Protection and Unit-linked(3) Product Proposition: Integrated Unit-linked with Protection Riders 98% ANP #1 Rider 51% agency market share(1) from regular premium sales(3) #1 Market Share in 1 H23 (¹) +27% Agency VONB +29% Partnership VONB #1 Unit-linked 84% agency market share(1) Notes: VONB comparative is shown on a constant exchange rate basis (1) (2) (3) Source: The Thai Life Assurance Association, as of Jun 2023 based on 1H23 ANP Number of investment consultant licensed agents as of Jun 2023; Source: The Securities and Exchange Commission AIA Thailand total VONB from traditional protection and unit-linked; regular premium sales as percentage of total ANP in 1H23 14#15India: Excellent Performance by Tata AIA Life Tata AIA Life VONB Proven Execution, Focus on Quality Top 3 and Fastest Growing Private Insurers in India (1) Individual Weighted New Business Premium in 1H23 Digitally-Enabled Multi-Channel Platform 1H22 +48% 1H23 Excellent VONB Growth in Agency and Partnerships #1 SBI Life #2 HDFC Life #3 Tata AIA Life #1 Retail Protection Player (2) Retail Sum Assured (Private Insurers) Tata AIA Life #2 #3 #4 Notes: 1H23 (Jan-Jun 2023) YoY growth rates, unless otherwise stated (1) (2) (3) (4) Individual weighted new business premium of private life insurers for 1H23 (Jan-Jun 2023) Among private life insurers, based on retail sum assured for 1H23 (Jan-Jun 2023) Based on regulatory disclosures on 13th month persistency of all insurers at the end of Mar 2023 AIA estimates as of Jun 2023 Differentiated Premier Agency +80% ANP +35% ANP per Active Agent +33% active agents #1 MDRT life insurer in India +32% ANP Leading Bancassurance 1.6x 6 high-quality bank partners >165m accessible customers AIA +45% ANP Partner with Leading domestic brokers Brokers and Digital Partners #1 Persistency (3) #1 wallet share (4) 15#16AIA Group: Excellent 1H 2023 Growth, Confident Outlook Multiple Growth Engines AIA GROUP ◉ MAINLAND CHINA HONG KONG ASEAN INDIA 37% VONB growth to >$2b Unrivalled distribution powered by TDA ■ 29% VONB growth from Feb to Jun Unique advantages to capture full growth potential ☐ |: ☐ |: 111% VONB growth from MCV and domestic Well-positioned for sustained MCV business 16% VONB growth ex-Vietnam #1 in ASEAN; 1/3 of Group VONB 48% VONB growth, #3 private life insurer #1 retail protection, #1 persistency Unmatched Financial Flexibility STRONG, RESILIENT BALANCE SHEET GROWING FREE SURPLUS GENERATION ATTRACTIVE NEW BUSINESS RETURNS CONSISTENT CASH GENERATION SUPERIOR SHAREHOLDER RETURNS $16.3b free surplus ◉ 260% Group LCSM coverage ratio ◉ AIA $3.3b UFSG in 1H23, up 10% per share $64.1b free surplus generation since IPO >20% IRR on new business investment 3-year payback period $1.7b capital flows to Group in 1H23 $8.7b Holding Co. financial resources Interim DPS up 5% to 42.29 HK cents $10b share buy-back programme 16#17Financial Results Garth Jones Group Chief Financial Officer AIA HEALTHIER, LONGER, BETTER LIVES 17#18HEALTHIER, LONGER, AIA BETTER LIVES Growth Earnings Capital & Dividends 18#19Excellent VONB Growth in 1H 2023 Other Markets 10% Malaysia 8% Singapore 8% Thailand 15% 1H23 VONB $2,029m +37% Hong Kong 31% Growth in All Reportable Segments Hong Kong $681m +111% Mainland China $601m +14% Singapore $173m Malaysia $170m +5% +10% Mainland China 28% Thailand $327m +28% Other Markets $212m +8% Note: VONB growth rates are shown on a constant exchange rate basis. VONB by geographical market is based on local statutory reserving and capital requirements, before the deduction of unallocated Group Office expenses and non-controlling interests ALA 19#20High-Quality New Business Delivering Attractive Returns VONB ($m) 2,029 VONB Margin Movement 55.2% (5.1) pps (0.1) pps (1.4) pps +2.2 pps 50.8% 1,482 +37% 1H22 Product Mix Others 21% 1H23 1H22 VONB Margin Product Mix Geographical Channel Mix Mix Others Including Assumption Changes 1H23 VONB Margin PVNBP Margin by Product 13.2% 13.4% 1H22 1H23 9.7% 9.6% 10.5% 9.3% 9.6% 7.1% 7.2% 7.7% Unit-linked 10% 1H23 VONB 40% Traditional Protection 29% Participating Overall Traditional Protection Participating AIA Unit-linked Others 20 20 Note: VONB comparative is shown on a constant exchange rate basis; Product mix is based on local statutory reserving and capital requirements, before the deduction of unallocated Group Office expenses and non-controlling interests#21EV Operating Profit of $4.4b, Up 20% Per Share 71.2 $4.4b EV Operating Profit EV Equity Movement ($b) Shareholder Returns $3.6b AIA + 0.2 + 2.0 (0.2) (0.2) 75.6 (0.1) (1.3) + 2.6 (1.7) (2.0) 70.6 Operating ROEV 13.3% vs 9.4% in FY22 Group EV Equity Expected Return on EV VONB End of 2022 Operating Experience Variances Operating Assumption Changes (1) Finance Costs Notes: Due to rounding, numbers presented in the chart may not add up precisely (1) Includes a claims provision for prudence Investment Exchange Rates Dividend Paid Share Buy-back Group EV Equity Before Non-operating Return Variances and Others Items Group EV Equity End of 1H23 21#22EV Sensitivity to Market Movements Remains Small 5% 4% 3% 2% 1% AIA AIA Long-Term Assumptions vs Market Rates Weighted Average by Geography (1) EV Sensitivities to Interest Rates and Equity Prices Includes mark-to-market asset impacts, changes to long-term assumption and risk discount rates ($m) Nov-10 Nov-11 68,033 Equity Prices Interest Rates 10% Decrease 10% Increase 50 bps Decrease 50 bps Increase (2.8)% +2.8% +1.7% (1.3)% Nov-12 Nov-13 10 Year Market Forward (10-year Govt Bond) Nov-14 Nov-15 Nov-16 Note: (1) Weighted average interest rates by VIF of Mainland China, Hong Kong, Thailand, Singapore and Malaysia Dec-17 Dec-18 Dec-19 Jun-20 (10-year Govt Bond) AIA Long-Term Assumption Dec-20 Dec-21 Dec-22 Jun-23 End of 1H23 EV (1,926) 1,892 1,142 (915) 22 22#23HEALTHIER, LONGER, AIA BETTER LIVES Growth Earnings Capital & Dividends 23#24Strong Underlying CSM Growth Driven by New Business CSM Movement, Net of Reinsurance ($b) AIA + 3.4 50.2 +19.3% Annualised + 1.2 54.9 (1.4) (1.1) 52.4 CSM End of 2022 New Business CSM Expected Return on In-force Notes: Due to rounding, numbers presented in the chart may not add up precisely (1) Calculated after variances and others and exchange rates CSM Before Variances and Others, Exchange Rates and Release 9.7% Annualised (1) (2.6) 49.7 Variances and Others Exchange Rates Closing CSM Before Release CSM Release CSM End of 1H23 Underlying +$2.0b CSM Growth in 1 H23 24#25Operating Profit After Tax Up 4% Per Share 1H23 OPAT Composition ($m) YoY Change in CER ($m) AIA Operating Margin OPAT Per Share (US cents) + 1,721 (413) 28.19 (226) 17.0% (616) $2.8b Insurance Service Result 27.15 +4% 3,272 + 119 2,618 + 69 CSM Release Operating Variances (1) Risk Adjustment Release and Other Net Investment Result After Other Revenue and Expenses (3) Finance Costs Tax OPAT 1H22 1H23 Expenses (2) +113 (90) (28) +144 +59 (50) (142) +6 Notes: OPAT per share comparative is shown on a constant exchange rate basis (1) Includes claims, expenses and others but excludes persistency (2) Net of investment management expenses of $97m (3) Net of non-attributable expenses under IFRS 17 of $438m and non-insurance expenses of $192m 25#26High-Quality, Sustainable Growth Portfolio High-Quality Sources of Earnings Return on Net Worth (1) Geographically Diversified Portfolio Other Markets Note: 73% 11% 15% Malaysia Insurance Services 5% Spread 12% Singapore 10% 33% Hong Kong 1H23 OPBT 1H23 OPAT Non-par 58% and Fee-based 15% 15% Thailand Participating 26% Mainland China Long-Term Sustainable Business 1% Single Premiums (10%) First Year Premiums 17% 99% Regular Premiums 1H23 TWPI 82% Renewal Premiums (1) Net of finance costs, non-attributable expenses under IFRS 17 and non-insurance expenses excluding the investment contract related expenses 9.29 Compounding Growth OPAT Per Share (US cents) >3x ALA 28.19 1H11 1H12 1H13 1H14 1H15 1H16 1H17 1H18 1H19 1H20 1H21 1H22 1H23 IFRS 17 26#27Operating ROE Increased to 14.2% Shareholders' Allocated Equity Movement ($b) $2.3b Net Profit Shareholder Returns $3.6b 47.2 + 3.3 (0.7) (0.3) (0.7) 48.7 (1.7) (2.0) 45.1 Operating ROE 14.2% vs 13.0% in FY22 AIA Allocated Equity End of 2022 Operating Profit After Tax Investment Return Movements (1) Other Non-operating Items Exchange Rates, Other Capital Movements and Others Allocated Equity Before Dividend and Share Buy-back Dividend Paid Share Buy-back Allocated Equity End of 1H23 Notes: Due to rounding, numbers presented in the chart may not add up precisely Short-term investment and discount rate variances, net of tax (1) 27#28Comprehensive Equity of $83.2b; Reinforces AIA's Prudent EV AIA Net CSM Shareholders' Equity Reconciliation of Comprehensive Equity to EV Equity ($b) + 2.9 83.2 As at 30 Jun 2023 (4.3) (11.2) " 70.6 ☐ EV and Free Surplus More Representative of Shareholder Value Value of future distributable cash flows to shareholders Captures all expenses including unallocated Group Office expenses Reflective of regulatory and Group capital requirements Risk premium allowance in the range of 4% to 6% (2) Free surplus represents shareholders' view of capital Comprehensive Equity Risk Adjustment (¹) Cost of Capital in EV Valuation Differences EV Equity Notes: (1) Risk adjustment is net of reinsurance (2) For Hong Kong, Mainland China, Thailand, Singapore and Malaysia 28#29HEALTHIER, LONGER, AIA BETTER LIVES Growth Earnings Capital & Dividends 29 29#30Very Strong and Resilient Solvency Position Group LCSM Coverage Ratio Movement +15 pps (9) pps (6) pps (1) pps 282% (7) pps 283% (15) pps 260% Group LCSM Coverage Ratio End of 2022 Expected Solvency Generation AIA Resilient to Market Volatility Sensitivities to Changes in Interest Rates and Equity Prices Impact on Group LCSM Coverage Ratio Temporary effects Regulatory changes (6) pps (8) pps 10% increase in equity prices +3 pps Others (1) pps 10% decrease in equity prices (4) pps 50 bps increase in interest rates (8) pps New Business Dividend Investment Finance Costs Group LCSM Coverage Ratio Before Share Buy-back Other Group LCSM Non-operating Coverage Ratio Items End of 1H23 50 bps decrease in interest rates +9 pps Share Buy-back and Other Non-operating Items 30 50#31High-Quality, Diversified and Resilient Investment Portfolio Par (3) Business Non-Par and Surplus Total Assets ($b) Government & Government Agency Bonds 27.5 58.2 85.6 Corporate Bonds 47.5 29.3 76.8 Structured Securities 0.4 1.8 2.2 Loans and Deposits 0.7 3.5 4.2 Fixed Income 76.1 92.8 168.9 Equities (1) 27.6 12.4 40.0 Real Estate ☐ 3.6 4.4 8.0 Others (2) 1.2 5.4 6.6 Total Invested Assets 108.5 115.0 223.5 (1) Notes: As of 30 Jun 2023. Due to rounding, numbers presented in the table may not add up precisely Includes equity shares, interests in investment funds and exchangeable loan notes (2) (3) (4) Cash and cash equivalents and derivative financial instruments used for risk management purposes Including participating funds and other participating business with distinct portfolios Including not rated bonds (5) Excluding LGFVs (6) Government and government agency bonds AAA BB & below (4) 1% AA 7% 8% Corporate BBB 42% Bonds By Credit Rating $29.3b A 42% AIA Investment grade corporate bond portfolio Average rating unchanged at A- >1,900 issuers, diversified across sectors and geography Average holding size of $15m No material increase in expected credit loss (ECL) provision AIA Group's Mainland China Exposure $1.1b in real estate bonds and equities (5) $0.8b in local government financing vehicles (LGFVs) AIA China's Prudent Investment Portfolio ■ >90% of AIA China's fixed income portfolio in government bonds (6) 31#32Free Surplus of $16.3b After $3.6b Shareholder Returns Free Surplus Movement ($b) Shareholder Returns + 3.3 (0.7) 17.9 (0.2) Underlying Free Surplus Generation +10% per share +$2.0b $3.6b AIA (0.2) (0.3) + 0.2 19.9 (1.7) (2.0) 16.3 Free Surplus End of 2022 Acquisitions Underlying Free Surplus Generation New Business Investment Unallocated Group Office Expenses Finance Costs and Others Note: Due to rounding, numbers presented in the chart may not add up precisely Investment Return Variances and Other Non-operating Items Free Surplus Before Dividend Dividend Paid Share Buy-back Free Surplus End of 1H23 and Share Buy-back 32 32#33Progressive Return to Shareholders; Interim Dividend up 5% AIA Prudent, Sustainable and Progressive Dividend Policy Interim Dividend Per Share (HK cents) $10b Ongoing Share Buy-Back Enhancing Shareholder Returns Return to Shareholders ($m) 3,638 Note: 40.28 +5% 1H22 (1) Including special dividend payment of $146m 42.29 2,992 1,966 Share Buy-Back 1,558 1,448 1,452 1,140 983 786 1,672 Dividend Paid 525 339 380 442 1H23 1H12 1H13 1H14 1H15 1H16 1H17 1H18 1H19 1H20 1H21 1H22 1H23 33#341H 2023 Very Strong Financial Performance Growth Earnings VONB OPAT $2,029m $3,272m +37% +4% per share Capital & Dividends ALA UFSG $3,288m +10% per share Free Surplus $16.3b After $3.6b shareholder returns EV Equity $70.6b Operating ROEV 13.3% Operating ROE 14.2% vs 13.0% in FY22 Interim Dividend Per Share 42.29 HK cents +5% Share Buy-Back $2.0b Cumulative $5.5b 34 =4#35Definitions and Notes AIA " The Group adopted International Financial Reporting Standards (IFRS) 9, Financial instruments, IFRS 17, Insurance Contracts and Amendment to International Accounting Standard (IAS) 16, Property, Plant and Equipment from 1 January 2023. The comparative financial information for the six months ended 30 June 2022 and the year ended 31 December 2022 have been restated under IFRS 9, IFRS 17 and Amendment to IAS 16, unless otherwise stated. Throughout the entire document, the impact from adopting IFRS 9 and the amendment to IAS 16 are included when referring to IFRS 17 figures. In the context of our reportable segments, Hong Kong refers to operations in the Hong Kong Special Administrative Region (SAR) and the Macau SAR; Singapore refers to operations in Singapore and Brunei; and Other Markets refers to operations in Australia, Cambodia, India, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China) and Vietnam. The financial information from 2017 onwards is presented on the 31 December financial year-end basis, and the financial information from 2016 and before is presented on the 30 November financial year- end basis. Growth rates are shown against the corresponding period of 2022 unless otherwise stated. Comparatives for balance sheet items are shown against the position as at 31 December 2022 unless otherwise stated. ANP and VONB for Other Markets include the results from our 49% shareholding in Tata AIA Life Insurance Company Limited (Tata AIA Life). ANP and VONB do not include any contribution from our 24.99% shareholding in China Post Life Insurance Co., Ltd. (China Post Life). The IFRS results of Tata AIA Life and China Post Life are accounted for using the equity method in Other Markets and Group Corporate Centre, respectively. For clarity, TWPI does not include any contribution from Tata AIA Life and China Post Life. The results of Tata AIA Life and China Post Life are both reported on a one-quarter-lag basis. The results of Tata AIA Life are accounted for using the six-month period ended 31 March 2023 and the six- month period ended 31 March 2022 in AIA's consolidated results for the six-month period ended 30 June 2023 and the six-month period ended 30 June 2022, respectively. The results of China Post Life are accounted for using the six-month period ended 31 March 2023 and the period from the completion of the investment on 11 January 2022 to 31 March 2022 in AIA's consolidated results for the six- month period ended 30 June 2023 and the six-month period ended 30 June 2022, respectively. The financial information from 2019 onwards is presented after the change in AIA's IFRS accounting treatment for the recognition and measurement of insurance contract liabilities of other participating business with distinct portfolios. The financial information from 2018 and before is presented before the above-mentioned changes. From 31 December 2022 onwards, the Group enhanced the presentation to further split and allocate the underlying assets held by consolidated investment funds to the respective fund segments of the asset-backing liabilities. Where consolidated investment funds are held by third-party unit holders, these continue to be classified under consolidated investment funds. The financial information for 30 June 2022 and prior periods is presented before the above-mentioned change and the adoption of new accounting standards for IFRS 9 and IFRS 17. All figures are presented in actual reporting currency (US dollar) unless otherwise stated. Growth rates are shown on a constant exchange rates (CER) basis unless otherwise stated. Change on CER is calculated for all figures for the current period and for the prior period, using constant average exchange rates, other than for balance sheet items as at the end of the current period and as at the end of the prior year, which is translated using the CER. AIA's eligible group capital resources and group prescribed capital requirement (GPCR) are calculated based on the Local Capital Summation Method (LCSM). The Group LCSM coverage ratio is referred to as the "eligible group capital resources coverage ratio" in the group-wide supervision (GWS) framework and is calculated as the ratio of the eligible group capital resources to the GPCR on the prescribed capital requirement (PCR) basis. AIA has a presence in 18 markets - wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei, Macau SAR and a 49% joint venture in India. In addition, AIA has a 24.99% shareholding in China Post Life. ANP represents 100% of annualised first year premiums and 10% of single premiums, before reinsurance ceded. 35#36Definitions and Notes (Cont.) AIA ☐ ☐ B ☐ ☐ ☐ " ☐ " ANW is the market value of assets in excess of the assets backing the policy reserves and other liabilities of the life (and similar) business of AIA, plus the IFRS equity value of other activities, such as general insurance business, less the value of intangible assets. It excludes any amounts not attributable to shareholders of AIA Group Limited. ANW for AIA is stated after adjustment to reflect consolidated reserving requirements. ANW by market is stated before adjustment to reflect consolidated reserving requirements, and presented on a local statutory basis. ASEAN, officially the Association of Southeast Asian Nations, businesses refers to operations in Thailand, Singapore, Malaysia, Vietnam, Indonesia, the Philippines, Cambodia, Myanmar and Brunei. Composition of investments includes participating funds and other participating business with distinct portfolios, non-par funds and surplus assets. Comprehensive equity is defined as shareholders' equity plus net contractual service margin (CSM). CSM is a component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the entity will recognise as it provides insurance contract services under the insurance contracts in the group. EV Equity is the total of embedded value, goodwill and other intangible assets attributable to shareholders of the Company, after allowing for taxes. Fair value reserve comprises the cumulative net change in the fair value of debt securities measured at fair value through other comprehensive income and the cumulative related loss allowance recognised in profit or loss. Free surplus is the excess of the market value of AIA's assets over the sum of the statutory liabilities, required capital and adjustment for certain assets not eligible for regulatory capital purposes. Holding company financial resources represent the debt securities, equity shares and interests in investment funds, deposits, cash and cash equivalents and dividends paid but not settled by subsidiaries, net of obligations under repurchase agreements, at the Group's listed holding company, AIA Group Limited. IFRS operating profit includes the expected long-term investment return for equities and real estate. Insurance contract services are the services that the Group provides to a policyholder of an insurance contract: (a) coverage for an insured event (insurance coverage); (b) for insurance contracts without direct participation features, the generation of an investment return for the policyholder, if applicable (investment-return service); and (c) for insurance contracts with direct participation features, the management of underlying items on behalf of the policyholder (investment-related service). Insurance finance reserve comprises the cumulative insurance finance income or expenses recognised in other comprehensive income. Insurance service result comprises insurance revenue, insurance service expenses and net expenses from reinsurance contracts held. Leverage ratio is total borrowings expressed as a percentage of the sum of total borrowings, total equity and CSM net of reinsurance and taxes. Net CSM is the contractual service margin net of reinsurance, taxes and non-controlling interests. Net investment result comprises investment return, net finance income or expenses from insurance contracts and reinsurance contracts held, movement in investment contract liabilities and movement in third-party interests in consolidated investment funds. ☐ New business contractual service margin (NB CSM) represents the contractual service margin initially recognised in the period. 36#37Definitions and Notes (Cont.) AIR " " ☐ ■ ☐ Non-participating (non-par) business includes all insurance liabilities under the General Measurement Model (GMM) model, covering traditional protection, unit-linked with significant protection benefits, universal life and other participating business without distinct portfolios. Operating ROE stands for operating return on shareholders' allocated equity and is calculated as operating profit after tax attributable to shareholders of the Company, expressed as a percentage of the simple average of opening and closing shareholders' allocated equity. It is calculated on an annualised basis. Operating ROEV stands for operating return on EV and is calculated as EV operating profit, expressed as a percentage of the opening embedded value. It is calculated on an annualised basis. Participating (Par) business refers to participating funds and other participating business with distinct portfolios, with investment experience reflected within insurance contract liabilities, unless otherwise stated. PVNBP margin refers to margin on a present value of new business premium basis. Risk adjustment or RA represents the compensation the Group requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as the Group fulfils insurance contracts. Shareholders' allocated equity is total equity attributable to shareholders of the Company less fair value reserve and insurance finance reserve. TWPI consists of 100% of renewal premiums, 100% of first year premiums and 10% of single premiums, before reinsurance ceded. Underlying free surplus generation (UFSG) represents free surplus generated from the in-force business, adjusted for certain non-recurring items, and before free surplus used to fund new business, unallocated Group Office expenses, finance costs, investment return variances and other non-operating items. The underlying free surplus generation is also calculated after reflecting consolidated reserving and capital requirements. VIF is the present value of projected after-tax statutory profits by Business Units emerging in the future from the current in-force business less the cost arising from holding the required capital (CoC) to support the in-force business. VIF for AIA is stated after adjustments to reflect consolidated reserving and capital requirements and the after-tax value of unallocated Group Office expenses. VONB for the Group is after unallocated Group Office expenses and the adjustment to reflect consolidated reserving and capital requirements. The total reported VONB for the Group excludes VONB attributable to non-controlling interests. VONB and VONB margin by distribution channel are based on local statutory reserving and capital requirements, before the deduction of unallocated Group Office expenses and non-controlling interests and exclude pension business. VONB and VONB margin by product mix and geographical market are based on local statutory reserving and capital requirements, before the deduction of unallocated Group Office expenses and non- controlling interests. For VONB and PVNBP margin by product mix, participating (par) business refers to participating funds and other participating business with and without distinct portfolios. VONB includes pension business. ANP and VONB margin exclude pension business and are before the deduction of non-controlling interests. The per share information from the first half of 2022 is calculated based on number of ordinary shares outstanding. The per share information for 2021 and before is calculated based on number of ordinary shares in issues. VONB margin is calculated as VONB divided by ANP. VONB for the margin calculations excludes pension business and is before the deduction of non-controlling interests to be consistent with the definition of ANP. 37#38HEALTHIER, LONGER, AIR BETTER LIVES APPENDIX#39Accelerating AIA's Profitable Growth Strategy Leading Customer Experience Seamless omnichannel customer experience with best-in-class engagement Strategic Priorities Unrivalled Distribution Scale capacity and productivity through digitalisation and advice-centric models Compelling Propositions AIA Be the leading provider of personalised advice and innovative solutions | Customised and digitally-enabled journeys World-class technology Step Change in Technology, Digital and Analytics Data and analytics powering everything we do Organisation of the Future Simpler, faster, more connected Financial Discipline Sustainable long-term shareholder value driven by clear KPIs Structural Growth Drivers in Asia Unprecedented Significant need for wealth creation 9 private protection Rapidly shifting consumer mindset Pervasiveness of new technologies Embracing purpose, sustainability and resilience 39#40AIA's Integrated Health Strategy AIA Personalised Health Insurance Be the leading provider of personalised health insurance advice and innovative solutions Integration with Outpatient Clinics Deliver better health outcomes at lower costs through strategic partnerships with outpatient clinics Advanced Healthcare Administration and Management Provide more effective care management programmes with simpler healthcare journeys Powered by Health Technology, Digital and Analytics Apply world-class digital health technology across the entire health insurance and healthcare value chain resulting in more efficient pricing, best-in-class claims and risk management and advanced value-based care capabilities More Accessible Making Healthcare More Affordable amplifyhealth More Effective 40 40#41Embedding ESG in Our Business AIN AIA's Ambition Health and Wellness To be a global industry leader in ESG, shaping a more sustainable future for the communities we serve and creating long-term value for all our stakeholders Engage and inspire healthy living ■ Provide greater access to quality care Champion financial inclusion and reduce the burden of medical expenses ■ Deliver better health outcomes ESG Strategy Sustainable Investment ☐ Deepen engagement with investee companies Augment knowledge and capacity on ESG ■ Enhance portfolio exclusions/inclusions ■ Carbon footprint our portfolio Sustainable Operations ■ Increase digitalisation and automation Encourage good ESG practice among vendors ■ Adhere to green building standards ■ Reduce our carbon footprint People and Culture ■ Foster a learning culture that supports employee development ■ Promote workplace diversity, innovation and inclusion Embed a culture of ethical decision-making and risk management ■ Ensure fair and equitable processes Effective Governance ■ Maintain a corporate governance programme consistent with international best practice Effectively manage ESG risks and opportunities ■ Lead the promotion of ESG best practice ■ Establish AIA as a global leader on key ESG indices and ratings 41#42Geographical Market Performance AIA Hong Kong ($m) VONB 1H23 681 1H22 CER AER Singapore ($m) 1H23 1H22 CER AER 323 +111% +111% VONB 173 161 +5% +7% VONB Margin ANP 56.9% 69.3% (12.4) pps (12.4) pps VONB Margin 65.0% 65.9% (0.9) pps (0.9) pps 1,165 443 +163% +163% ANP 267 244 +7% +9% TWPI OPAT 5,594 5,404 +4% +4% TWPI 1,981 1,800 +8% +10% 1,066 1,134 (6)% (6)% OPAT 344 337 (1)% +2% Mainland China ($m) 1H23 1H22 CER AER Malaysia ($m) 1H23 1H22 CER AER VONB 601 563 +14% +7% VONB 170 161 +10% +6% VONB Margin 50.3% 67.4% (17.2) pps (17.1) pps VONB Margin 64.8% 67.2% (2.4) pps (2.4) pps ANP 1,195 835 +53% +43% ANP 261 239 +14% +9% TWPI 4,992 4,509 +18% +11% TWPI 1,284 1,248 +7% +3% OPAT 833 840 +7% (1)% OPAT 170 188 (5)% (10)% Thailand ($m) 1H23 1H22 CER AER Other Markets ($m) 1H23 1H22 CER AER VONB 327 260 +28% +26% VONB 212 207 +8% +2% VONB Margin 91.5% 83.8% +7.7 pps +7.7 pps VONB Margin 28.6% 29.1% (0.6) pps (0.5) pps ANP 357 311 +17% +15% ANP 739 706 +11% +5% TWPI 2,051 1,989 +5% +3% TWPI 3,398 3,618 (1)% (6)% OPAT 496 498 OPAT 346 374 (1)% (7)% 42 42#43Unparalleled Growth Platform Geographical Mix % of 1H23 VONB Malaysia 8% Singapore 8% Thailand 15% Other Markets 10% Hong Kong 31% Mainland China 28% Distribution Mix % of 1H23 VONB Product Mix % of 1H23 VONB Partnerships 25% Agency 75% Note: Based on local statutory reserving and capital requirements, before the deduction of unallocated Group Office expenses and non-controlling interests. Distribution mix excludes pension business Others 21% Unit-linked 10% Participating 29% ALA Traditional Protection 40% 43#441H 2023 ANW Movement ANW Movement ($b) AIA + 1.1 + 2.7 (0.1) 0.0 (0.2) (0.6) 35.9 (0.1) (1.7) (2.0) 33.8 (0.2) 32.7 ANW Effect of End of 2022 Acquisitions Expected Return Contribution Operating Finance to ANW from VONB Variances Costs ANW Before Non- Investment Return Variances Other Non- Exchange Rates Dividend Paid Share Buy-back ANW End of 1H23 operating Variances operating Variances and Other Items Note: Due to rounding, numbers presented in the chart may not add up precisely 44#451H 2023 VIF Movement +2.1 (0.0) 35.1 (0.1) VIF Movement ($b) 37.1 AIA (0.6) (0.6) (0.6) 35.3 445 45 VIF End of 2022 Expected Return Contribution to VIF Operating Variances from VONB VIF Before Non-operating Variances Investment Return Variances Other Non-operating Variances Exchange Rates VIF End of 1H23#46IFRS Shareholders' Equity and ANW Reconciliation of IFRS Shareholders' Equity to ANW ($b) AIA 41.8 (2.4) (0.1) + 0.8 (3.5) + 0.1 36.7 (4.0) 32.7 Shareholders' Equity End of 1H23 Difference between IFRS and Local Statutory Policy Liabilities Mark-to-market Adjustment for Property, Mortgage Loan and Other Investments Deferred Tax Impacts Elimination of Intangible Assets Non-controlling Interests Impacts ANW (Business Unit) End of 1H23 Adjustment to Reflect Consolidated Reserving Requirements, Net of Tax ANW (Consolidated) End of 1H23 46 46#47$1.7b Net Investment Result from Non-Par and Surplus Assets 1H23 Net Investment Result After Expenses ($m) From Non-Par and Surplus Assets Expected long-term investment return for equities and real estate 2,818 (1,000) 662 Interest revenue on 2,156 financial assets Investment Return Insurance Finance Expenses and Others (3) ☐ ☐ AIA 1H22 FY22 1H23 (97) 1,721 Fixed Income Yield (1) 4.1% 4.2% 4.3% Investment Management Expenses Total Investment Return (2) 4.3% 4.5% 4.8% Net Investment Result After Expenses Unwind of discount rate on non-par insurance contract liabilities Uses a level discount rate locked-in at contract issue Average insurance contract liabilities (4) balance of $63.1b in 1H23 Rate changes gradually over time with new business Notes: Excludes participating funds and other participating business with distinct portfolios, unit-linked contracts and consolidated investment funds Interest revenue from fixed income investments, as a percentage of average amortised cost of fixed income investments over the period Interest revenue from fixed income investments, cash and cash equivalents and expected long-term investment returns of equities and real estate, as a percentage of average fixed income investments, cash and cash equivalents, equities and real estate over the period Primarily represents interest accreted on non-par business liabilities net of investment return relating to unit-linked business with significant protection (4) Net of reinsurance, insurance contract asset and insurance finance reserve (1) (2) (3) 20 47#481H 2023 Net Profit of $2.3b $m OPAT Reconciliation of OPAT to Net Profit 1H23 1H22 YoY CER 3,272 3,352 +0.2% Short-term investment and discount rate variances, net of tax (715) (867) n/m Reclassification of revaluation gains for property held for own use, net of tax (66) (33) n/m Other non-operating items, net of tax Net Profit (241) (909) n/m 2,250 1,543 +50% AIA 48#49Shareholders' Allocated Equity Increased to $45.1b Since IPO AIA Note: (1) 17.6 Shareholders' Allocated Equity Movement Since IPO ($b) +$52.4b Net Profit + 56.4 (2.4) (1.6) (16.9) (4.3) + 1.8 (5.5) 45.1 Allocated Equity Operating Profit After Tax End of 2010 Investment Return Movements (1) Other Non- operating Items Dividend Paid Exchange Rates Other Capital Movements and Others Share Buy-back Allocated Equity End of 1H23 Represents short-term fluctuations in investment return related to equities and real estate, net of tax under IFRS 4 and short-term investment and discount rate variances, net of tax under IFRS 17 from 2022 onwards 49 49#50IFRS 17 Reinforces Prudence in AIA's Embedded Value Net CSM (1) Comprehensive Equity to EV Equity ($b) Shareholders' Equity New Business CSM to VONB ($b) + 2.9 (4.3) 83.2 (11.2) 3.4 (0.6) 70.6 + 0.2 (0.2) (0.8) Comprehensive Equity End of 1H23 Risk Adjustment (2) Cost of Capital in EV Valuation Differences EV Equity End of 1H23 1H23 New Business Tax CSM (Net of Notes: (1) After allowing for reinsurance, taxes and net of non-controlling interests (2) Risk adjustment is net of reinsurance Reinsurance) Risk Adjustment (2) ALA 2.0 Cost of Capital Valuation Differences 1H23 VONB in VONB 50 50#51Free Surplus vs Group LCSM Surplus Reconciliation of Free Surplus to Group LCSM Surplus ($b) Notes: (1) (2) 16.3 + 4.9 + 5.2 + 6.9 23.2 Free Surplus on Consolidated Basis End of 1H23 Adjustment to Reflect Consolidated Reserving and Capital Requirements Free Surplus on Business Unit Basis End of 1H23 + 8.9 42.2 Reflecting Shareholders' View of Capital (1) Different Capital Requirements Under EV for AIA China (2) Eligible Tier 2 Debt Capital Mainly reflects the inclusion of par business surplus Adjustment from China Association of Actuaries (CAA) EV basis to C-ROSS solvency basis in line with local requirements AIA Group LCSM Surplus End of 1H23 551#52Financial Discipline Driving Free Surplus Generation Underlying Free Surplus Generation ($m) (18.2) Use of Free Surplus Since IPO ($b) Note: (1) 1,094 3.0x 3,288 (16.9) Cumulative >20% IRR Free Surplus +64.1 Generation (1) New Business Investment AIA (5.5) (6.7) (3.9) (1.6) 16.3 Free Surplus End of 2010 5.0 1H10 1H23 New Business Investment Dividend Paid Share Buy-back Acquisitions Includes $7.8b from HKRBC early adoption and release of additional resilience margins at 1 Jan 2022 Unallocated Group Office Expenses, Finance Costs and Other Investment Return Variances and Other Items Free Surplus End of 1H23 52 52#53Holding Company Financial Resources Holding Company Financial Resources Movement ($b) AIA + 1.7 + 0.1 (0.2) + 0.1 12.3 (1.7) 10.7 (2.0) 8.7 | Holding Co. Financial Resources from Subsidiaries End of 2022 Capital Flows Increase in Borrowings (1) Interest Payments on Borrowings(1) Investment Income, Mark-to-market Movements in Debt Securities and Others Holding Co. Financial Resources Dividend Paid Share Buy-back Holding Co. Financial Resources Before Dividend and End of 1H23 Share Buy-back Notes: Due to rounding, numbers presented in the chart may not add up precisely (1) Borrowings principally include medium-term notes and securities, other intercompany loans, and amounts outstanding, if any, from the holding company's $2,290m unsecured committed credit facilities 53#54Discipline Around Financial Leverage Notes: (1) (2) Group Total Leverage ($b) CSM Net of Reinsurance and Taxes 41.6 1H23 Leverage Ratio (1) 11.9% Total Equity 42.3 Composition of Borrowings ($b) Subordinated (Hybrid)(2) 1.2 Subordinated 2.5 1H23 Borrowings Borrowings 11.3 $11.3b Senior Notes 7.6 Leverage ratio defined as total borrowings / (total borrowings + total equity + CSM net of reinsurance and taxes) Hybrid capital instruments meet requirements from one or more rating agencies for ratings capital credit and/or equity content for purposes of calculating financial leverage ALA 54 54#55Total Invested Assets of $223.5b Par (3) Non-Par Business and Surplus Total Assets ($b) Government and Government Agency Bonds 27.5 58.2 85.6 Corporate Bonds 47.5 29.3 76.8 Equities (1) 17% Structured Securities 0.4 1.8 2.2 Loans and Deposits Fixed Income Equities (1) Real Estate 0.7 3.5 4.2 76.1 92.8 168.9 27.6 12.4 40.0 3.6 4.4 8.0 Others (2) 1.2 5.4 6.6 Total Invested Assets 108.5 115.0 223.5 % of Total Invested Assets 49% 51% 100% (1) (2) (3) Notes: As of 30 Jun 2023; Due to rounding, numbers presented in the table may not add up precisely Includes equity shares, interests in investment funds and exchangeable loan notes Cash and cash equivalents and derivative financial instruments used for risk management purposes Including participating funds and other participating business with distinct portfolios Real Estate 4% Others (2) 3% 12% Par (3) Total Invested Assets $223.5b Fixed Income 76% 55 59 AIA#56Fixed Income Portfolio Total Fixed Income by Type Total Fixed Income $168.9b Note: As of 30 Jun 2023 ■ Government & Government 51% Agency Bonds ■ Corporate Bonds 45% ■Structured Securities 1% ■Loans and Deposits 3% Total Fixed Income by Maturity Total Fixed Income $168.9b ■>10 Years & No Fixed Maturity 72% - ■>5 10 Years 10% ■>1-5 Years 13% ■ ≤1 Year 5% 56 99 AIA#57Total Bonds by Accounting Classification ($b) Fair Value Through Other Comprehensive Income (FVOCI) Fair Value Through Profit or Loss (FVTPL) Amortised Cost (AC) (2) Total Bonds AIA Par (1) Business Non-Par and Surplus Assets Total Total Bonds by Accounting Classification 84.9 84.9 ■Non-Par and Surplus Assets (FVOCI) 52% ■ Par (¹) Business (FVTPL) 46% 75.3 2.5 77.8 Total Bonds $164.7b 2.0 2.0 ■Non-Par and Surplus Assets (FVTPL) 1% ■Non-Par and Surplus Assets 1% (AC) 75.3 89.3 164.7 Notes: As of 30 Jun 2023; Due to rounding, numbers presented in the table may not add up precisely (1) Including participating funds and other participating business with distinct portfolios (2) Includes structured securities 57 57#58Government and Government Agency Bond Portfolio Government Bonds (1) by Geography Government Bonds (1) $71.2b Government Agency (2) Bonds by Rating AIA 1H23 FY22 ■Mainland China 38% 39% ■ Thailand 18% 18% 1H23 FY22 Average Rating A+ A+ ■ AAA 21% 21% ■ US 12% 9% ■ AA 20% 18% ■South Korea Government 8% 9% Singapore 8% 9% Philippines Agency Bonds (2) $14.4b A 42% 43% 3% 3% ■ BBB 15% 16% ■ Malaysia 3% 3% ■BB & below (3) 2% 2% ■ Others 10% 10% Government bonds include bonds issued in local or foreign currencies by either the government where the respective business unit operates or other governments Notes: As of 30 Jun 2023 (1) (2) (3) Including not rated bonds. Government agency bonds comprise bonds issued by government-sponsored institutions such as national, provincial and municipal authorities; government-related entities; multilateral development banks and supranational organisations 58#59Corporate Bond Portfolio by Rating Rating ($b) Par (1) Business Non-Par and Surplus Assets Corporate Bonds by Rating Total AAA 0.6 0.2 0.8 AIA 1H23 FY22 Average Rating A- A- AA 3.2 2.3 5.5 ■ AAA 1% 1% A 21.8 12.5 34.3 ■ AA 7% 7% BBB 21.2 12.3 33.5 Corporate Bonds $76.8b ΠΑ 44% 44% ■ BBB 44% 45% BB and below (2) 0.7 2.1 2.8 BB and below (2) 4% 3% Total 47.5 29.3 76.8 BBB+ 5.7 BBB 3.8 BBB- 2.8 Notes: As of 30 Jun 2023; Due to rounding, numbers presented in the table may not add up precisely Total 12.3 (1) (2) Including participating funds and other participating business with distinct portfolios Including not rated bonds 59#60Corporate Bond Portfolio (Non-Par and Surplus Assets) Corporate Bonds by Geography Non-Par and Surplus Assets Corporate Bonds by Sector Non-Par and Surplus Assets AIA $b % of total $b % of total Asia Pacific United States 19.8 68% Energy 3.1 10% 5.7 19% Materials 1.1 4% Other Total 3.8 13% Industrials 3.1 11% 29.3 100% Consumer Discretionary 1.4 5% Consumer Staples 1.3 4% Corporate Bonds Financials and Real Estate Sector by Geography Other Healthcare 0.8 3% 9% Financials Banks 4.9 17% US 13% Corporate Bonds by Type Non-Par and Surplus Assets Financials Financial Services 4.3 14% $13.1b Financials Insurance 0.9 3% $b % of total Real Estate 3.1 10% 78% Asia Pacific Senior notes 27.6 94% Information Technology 1.2 4% Subordinated debt instruments 1.7 6% Communication Services 2.2 8% Additional Tier 1 debt instruments 0.03 0.1% Utilities 2.0 7% Total 29.3 100% Total 29.3 100% Note: As of 30 Jun 2023; Due to rounding, numbers presented in the chart may not add up precisely 60 60#61Structured Security Portfolio Par (1) Rating ($b) Non-Par and Surplus Total Business Assets AAA 0.1 0.1 0.2 AA 0.1 0.2 0.2 Structured Securities by Rating AIA 1H23 FY22 Average Rating BBB BBB - ААА 8% 7% A 0.1 0.6 0.7 ■ AA 10% 11% Structured Securities A 30% 28% BBB 0.1 0.7 0.8 $2.2b ■ BBB 37% 37% BB and below (2) 0.1 0.3 0.3 ■BB and below (2) 15% 17% Total 0.4 1.8 2.2 Notes: As of 30 Jun 2023; Due to rounding, numbers presented in the chart may not add up precisely (1) (2) Including participating funds and other participating business with distinct portfolios Including not rated bonds 19 61#62AIA China: Prudent Investment Portfolio Cash & Cash Equivalents (2) Real Estates 3% 2% Corporate Bonds (1) 5% Equities 11% Prudent ALM Approach AIA AIA China Invested Assets Non-Par and Surplus Assets Government & Government Agency Bonds 79% ☐ Asset allocation driven by liability cash flow matching in local currency 84% of invested assets in fixed income >90% of fixed income portfolio in government and government agency bonds Bond portfolio average international rating A+ Asset portfolio well diversified with insignificant alternative assets Notes: As of 30 Jun 2023 (1) Including 1% in structured securities and loans and deposits (2) Including less than 1% in derivatives financial instruments 62 62#63Risk Discount Rate and Risk Premium As at 30 Nov 2010 As at 30 Jun 2023 Risk Discount Long-term 10-year Risk Risk Discount Long-term 10-year Rates Premium Rates Risk Premium % Govt Bonds Govt Bonds Australia 8.75 5.65 3.10 7.43 3.30 4.13 Mainland China 10.00 3.74 6.26 9.67 3.70 5.97 Hong Kong 8.00 3.53 4.47 7.45 3.00 4.45 Indonesia 15.00 7.90 7.10 13.13 7.50 5.63 South Korea 10.50 4.82 5.68 8.86 3.00 5.86 Malaysia 9.00 4.45 4.55 8.86 4.50 4.36 New Zealand 9.00 6.13 2.87 7.39 3.30 4.09 Philippines 13.00 6.00 7.00 12.10 5.80 6.30 Singapore 7.75 2.93 4.82 7.22 2.90 4.32 Sri Lanka (1) n/a n/a n/a 21.00 10.00 11.00 Taiwan (China) 8.00 1.73 6.27 7.64 1.50 6.14 Thailand 9.50 3.87 5.63 8.00 3.20 4.80 Vietnam 16.00 10.20 5.80 9.55 4.00 5.55 Weighted Average (2) 8.95 3.85 5.10 8.30 3.37 4.93 Notes: For Tata AIA Life, the Group uses the Indian EV methodology as defined in Actuarial Practice Standard 10 issued by the Institute of Actuaries of India for determining its EV and VONB. This methodology uses investment returns and risk discount rates that reflect the market-derived government bond yield curve. The above disclosure information is therefore not provided for Tata AIA Life (1) (2) Sri Lanka is included since the acquisition completion date of 5 Dec 2012 Weighted average by VIF contribution AIA 63#64IFRS 17 Discount Rates and Illiquidity Premium 1 year 5 years Spot Rates as at 30 Jun 2023 10 years 15 years 20 years Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium Risk free With illiquidity premium % USD 5.27 5.60 4.05 5.12 3.76 5.03 3.81 5.08 4.12 5.33 HKD 4.82 5.15 4.02 5.08 3.77 5.04 3.79 5.07 4.11 5.31 CNY 1.86 2.37 2.44 2.88 2.67 3.00 2.85 3.19 2.99 3.40 SGD 3.52 5.23 3.03 4.09 2.90 4.09 2.67 3.88 2.37 3.57 MYR 3.27 3.76 3.62 4.03 3.91 4.22 4.08 4.41 4.18 4.57 THB 2.05 2.40 2.34 2.94 2.62 3.32 2.97 3.75 3.22 4.04 ALA 64#65Sensitivity Analysis: Embedded Value Equity prices +10% Equity prices -10% Interest rates +50 bps Sensitivity of EV as at 30 Jun 2023 +2.8% (2.8)% (1.3)% Interest rates -50 bps +1.7% Presentation currency 5% appreciation (2.6)% Presentation currency 5% depreciation +2.6% Lapse/discontinuance rates +10% (2.4)% Lapse/discontinuance rates -10% +2.6% Mortality/morbidity rates +10% (7.3)% Mortality/morbidity rates -10% Maintenance expenses -10% Expense inflation set to 0% Equity and property returns and risk discount rates -100 bps +7.2% +1.3% +1.4% +3.5% 65 59 AIA#66Sensitivity Analysis: VONB AIA Sensitivity of VONB for the six months ended 30 Jun 2023 Interest rates +50 bps Interest rates -50 bps Presentation currency 5% appreciation Presentation currency 5% depreciation Lapse/discontinuance rates +10% Lapse/discontinuance rates -10% Mortality/morbidity rates +10% (11.6)% Mortality/morbidity rates -10% Maintenance expenses -10% Expense inflation set to 0% Equity and property returns and risk discount rates -100 bps (5.0)% (3.6)% (6.2)% +4.2% +3.6% +2.6% +1.9% +6.8% +11.6% +9.8% 66 99#67Other Sensitivity Analysis Equity Prices 10% Fall 10% Rise Interest Rates 50 bps Decrease CSM (Net of Reinsurance) (1.3)% 50 bps Increase (1.2)% +1.2% +1.5% (2.8)% Shareholders' Allocated Equity Group LCSM Coverage Ratio (0.3)% +0.3% Note: Calculated based on position as at 30 Jun 2023 for CSM (net of reinsurance), shareholders' allocated equity and Group LCSM coverage ratio; 1H23 for profit before tax +2.7% (4) pps +3 pps (8) pps +9 pps AIA 67