#12019 ANNUAL RESULTS PRESENTATION 12 March 2020 AIA HEALTHIER, LONGER. BETTER LIVES#2Disclaimer AIA This document ("document") has been prepared by AIA Group Limited (the "Company") 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. 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 without registration with the United States Securities and Exchange Commission except pursuant to an exemption from, or in a transaction not subject to, such registration. 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. 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Throughout this document, in the context of our reportable market segments, Hong Kong refers to operations in Hong Kong Special Administrative Region and Macau Special Administrative Region, Singapore refers to operations in Singapore and Brunei, and Other Markets refers to operations in Australia (including New Zealand), Cambodia, India, Indonesia, Myanmar, the Philippines, South Korea, Sri Lanka, Taiwan (China) and Vietnam. 2#3CELEBRATING 100 YEARS AIA A Agenda 01 KEY BUSINESS HIGHLIGHTS Ng Keng Hooi, Group Chief Executive FINANCIAL RESULTS 02 Garth Jones, Group Chief Financial Officer MARKET REVIEWS 03 Jacky Chan, Regional Chief Executive Tan Hak Leh, Regional Chief Executive Bill Lisle, Regional Chief Executive AIA100 04 MICHIH Fisher Zhang, AIA China Chief Executive Officer STRATEGIC PRIORITIES & OUTLOOK Ng Keng Hooi, Group Chief Executive 05 Q&A 3#4AIA Ng Keng Hooi Group Chief Executive CELEBRATING 100 YEARS HEALTHIER, LONGER, AIR BETTER LIVES#5Pending#6Pending#7Pending#8Delivering on our Key Priorities (Cont.) Mainland China Preparation for Additional Geographical Access Application submitted for proposed conversion of AIA China into a Vietnam, Indonesia, Philippines India Distribution Strength 2019 VONB 53% Agency TATA AIA LIFE AIA Partnerships 47% JV with Tata Sons founded in 2001 ◉ wholly-owned life insurance subsidiary Proof of organic expansion model with successful parallel opening in Tianjin and Shijiazhuang, Hebei in July 2019 Highly Differentiated Premier Agency Strategy ~44,000 Premier Agents 5 times VONB per Agent(1) (AIA China vs Industry) +37% VONB CAGR since IPO Execution of Differentiated Premier Agency Strategy VONB per Active Agent 2018 +32% 2019 Excellent Results from Strategic Partners in 2019 AIA's 49% shareholding since 2016 Strategic multi-distribution model VONB (2) ($m) 78 +66% 47 2018 2019 Leader in Pure Retail Protection VPBank BCA BPI GRP SCA #5 #1 #1 in Vietnam in Indonesia JV in Philippines Market Position(3) Retail Protection Mix Agency Productivity Notes: (1) (2) For the period 1H2019; industry statistics based on latest company reports 100% of the results from Tata AIA Life and net of withholding tax, comparative is shown on a constant exchange rate basis (3) Based on Individual Weighted New Business Premium (IWNBP) amongst private players 8#9Pending#10Pending#112019 Financial Results AIA ($m) 2019 2018 CER AER VONB 4,154 3,955 6% 5% EV Operating Profit 8,685 8,278 6% 5% Growth Operating ROEV 15.9% 16.3% (0.6) pps (0.4) pps EV Equity 63,905 56,203 12% 14% Operating Profit After Tax 5,741 5,298 9% 8% IFRS Operating ROE 14.4% 14.5% (0.1) pps Earnings Shareholders' Allocated Equity 42,845 36,795 15% 16% Underlying Free Surplus Generation 5,501 4,945 13% 11% Capital & Dividends AIA Co. HKIO Solvency Ratio 362% 421% n/a (59) pps Final Dividend Per Share (HK cents) 93.30 84.80 n/a 10% Total Dividend (1) Per Share (HK cents) 126.60 114.00 n/a 11% Note: (1) Total dividend excluding special dividend in 2018 11#12Pending#13Growth from Resilient Portfolio Note: Hong Kong $1,621m (5)% 2019 VONB Thailand $494m +6% Mainland China $1,167m +27% Singapore $352m 2019 VONB by Market Segment Malaysia 6% Singapore 8% Other Markets (1) 12% Hong Kong 37% Malaysia $258m +7% Other Markets (1) $535m +27% Thailand 11% Mainland China 26% (1) In 2019, VONB for Other Markets includes 49% of the results from Tata AIA Life to reflect our shareholding. The reported VONB for 2018 has not been restated and does not include any contribution from Tata AIA Life AIA 13#14Pending#15Pending#16Quality Business with Prudent Operating Assumptions Mortality and Morbidity Claims Experience Variances ($m) Cumulative EV Operating Variances ($m) 233 212 200 193 164 149 152 124 116 1,425 1,129 735 487 379 255 144 2,028 2,662 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 (1) 2018 2019 Note: (1) 2017 figure covers a 13-month period from 1 December 2016 to 31 December 2017 AIA 16#17Interest Rates and EV Sensitivity AIA Long-term Assumptions vs Market Rates Weighted Average by Geography (1) 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% I (1.6)% (1.3)% I | I I I Nov-10 Nov-11 Nov-12 I I I Nov-13 I Nov-14 Note: (1) Weighted average interest rates by VIF of Hong Kong, Mainland China, Thailand, Singapore and Malaysia 10 Year Market Forward (10-year Govt Bond) AIA Long-term Assumption (10-year Govt Bond) Nov-15 I I Nov-16 Dec-17 Dec-18 Jun-19 Dec-19 Sensitivity of EV As at 31 Dec 2019 61,985 AIA 1.2% 1.6% 10% fall in equity prices 50 basis points decrease in interest rates 50 basis points increase in interest rates 10% rise in equity prices (967) (797) 2019 EV 968 719 17#18Pending#19Pending#20Pending#21Diversified OPAT Growth Hong Kong $1,931m +6% 2019 OPAT Thailand $1,064m +3% 2019 OPAT by Market Segment Other Markets Mainland China $1,061m +28% Singapore $583m +6% Malaysia 6% Singapore 10% Malaysia $333m +6% Other Markets $823m +2% 14% Hong Kong 33% Mainland China 18% Thailand 19% AIA 21 21#22Pending#23Sustained Value Creation at Attractive Returns Profitable Growth Drives EV and Increasing ROEV EV Equity ($b) 63.9 2.6x 56.2 52.4 43.7 39.0 39.8 34.9 31.7 27.5 24.9 Earnings Growth Drives Increasing ROE Shareholders' Allocated Equity ($b) AIA 2.4x 42.8 36.4 36.8 29.6 26.4 26.7 23.9 22.0 17.6 19.2 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operating ROEV Operating ROE +440bps 16.3% 15.4% 15.5% 15.9% 13.4% 13.6% 12.5% 12.8% 12.7% 11.5% " +240bps 14.5% 14.4% 14.1% 14.0% 13.4% 12.9% 12.2% 12.4% 12.0% 11.9% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 23#24Pending#25Pending#26Pending#27Disciplined Financial Management 3,206 Growth VONB ($m) Earnings OPAT ($m) 5,741 5,298 4,154 3,955 4,635 AIA Capital & Dividends Underlying Free Surplus Generation ($m) 5,501 4,945 4,568 2017 2018 2019 2017 2018 2019 2017 2018 2019 27#28Pending#29Pending#30Pending#31Hong Kong: Robust Domestic VONB growth VONB ($m) 1,712 (5)% 1,621 2H 916 (26)% 676 ■ 1H +19% 945 796 == 2018 2019 Products and Customers AIA Very strong, broad-based VONB growth of 19% in 1H Double-digit VONB growth from domestic customers ■ Lower VONB in 2H 2019 from MCV(1) which broadly tracked the reduction in reported visitor numbers AIA Vitality integrated product VONB up more than 25% Premier Agency ■ VONB growth despite challenging market backdrop ■ Continued growth in quality recruits and active agents ■ Enhanced productivity through AIA Smart ANP ($m) 2,697 2,393 VONB 62.0% 66.1% Margin Note: (1) Mainland Chinese visitor Profitable Partnerships Double-digit VONB growth in 1H Substantial VONB decline in 2H due to lower MCV(1) sales and increased competition in retail IFA 31#32Pending#33Pending#34Pending#35Pending#36Malaysia: Focus on Execution VONB ($m) 258 241 +7% 2018 2019 ANP ($m) 372 406 VONB 63.8% Margin Note: Comparatives are shown on a constant exchange rate basis AIA Premier Agency Double-digit VONB growth ■ Half of new agents from quality recruitment platform ■ Activity ratio more than 2x of standard new recruits Profitable Partnerships Double-digit VONB growth from Public Bank ■ Growth offset by lower direct marketing sales Products and Customers Double-digit VONB growth from Takaful segment ■ First-in-market innovative mental health benefit ■ Activated regional partnership with medix AIA Vitality members up over 40% 63.1% ■ 36#37Pending#38Thailand: Multi-channel Distribution Model VONB ($m) 494 468 +6% 2018 2019 ANP ($m) 638 729 VONB Margin 73.2% 67.7% ◉ Premier Agency Strong VONB growth from Financial Adviser (FA) AIA ■ FA represented 15% of total agents; contributed more than 30% of agency VONB ◉ FA activity ratio more than 2x of standard recruits ■ Continued reduction in less productive agents Profitable Partnerships Very strong VONB growth from Bangkok Bank Continued to activate and train insurance specialists Products and Customers ■ Market leader in protection and unit-linked products ■ Activated regional partnership with medix ■ Added e-payment options for premium collection Note: Comparatives are shown on a constant exchange rate basis 38#39Pending#40Other Markets: Delivering Very Strong Growth (Cont.) VONB ($m) 535 +27% 421 2018 2019 ANP ($m) 1,167 1,271 VONB Margin 35.8% 41.9% AIA Australia Strong double-digit VONB growth ■ Exercised control over CMLA since 1 Nov 2019 ■ Extended bancassurance with CBA in Australia and ASB Bank Limited in New Zealand to 25 years ■ Launched AIA Vitality in New Zealand South Korea VONB decreased despite positive growth in ANP ■ Launched digital direct channel targeting AIA Vitality members from SK Telecom Taiwan (China) Very strong VONB growth driven by bancassurance Comparatives are shown on a constant exchange rate basis In 2019, VONB and ANP for Other Markets include 49% of the results from Tata AIA Life to reflect our shareholding. The reported VONB and ANP for 2018 have not been restated and do not include any contribution from Tata AIA Life Notes: 40 40#41Pending#42NA108 100 A100 A100 AIA10C 100 北京站 【AIA100 AA110 Alam 友邦保险百年华诞 AIA 100 AIA100 100 健康長久好生活 -一刻为更好 友邦保险m AIA100 100 21 健康长久好生活 AIP 友邦保险 友邦保险百年华诞100公里區 AIA100 每一刻为更好-- BAIA10L A100 AIA10 PO WA100 100 0 AIA100 100 Fisher Zhang AIA China Chief Executive Officer 100 AIA1007 100 AIA10/E AIA100 AA100 AIA100 100 HEALTHIER, LONGER, AIR BETTER LIVES#43Mainland China: Sustained Quality Outperformance VONB ($m) +27% 921 1,167 2018 2019 ANP ($m) 1,019 1,248 VONB Margin 90.4% 93.5% Premier Agency Highly differentiated Premier Agency strategy Double-digit growth in active agents AIP ■ Continued enhancement of advanced digital platforms 95% agent enquiries handled by AIA Xiao You Products and Customers "Prevention, protection to recovery" customer proposition Upgraded wellness programme ■ Rolled out medical network, added recovery services ■ Launched innovative products with end-to-end solutions. New Footprint New sales and service centres opened in Tianjin and Shijiazhuang, Hebei in July 2019 ■ Application submitted for proposed conversion of AIA China into a wholly-owned life insurance subsidiary Note: Comparatives are shown on a constant exchange rate basis 43#44COVID-19: Impacts and Our Response in Mainland China ■ Reluctance to have face-to-face meetings Impact on Activity People generally avoiding public places Slump in retail and business activities Agency Support New Initiatives on Recruitment, Retention and Customer Engagement ■ ☐ Customer and Community Support Customer Care Simplified and convenient claims service Extra coverage and special case management services Special subsidy benefit for eligible customers Community Support ☐ Online customer engagement programmes ☐ Sales Online product promotion campaigns Recruitment Agency Management ☐ Enhanced Instant Buy sales portal enabling Air Sign remote signature solution and e-payment Online recruitment activities End-to-end online process for selection, interview and contracting Live online morning meetings Online training and coaching Special retention and caring programmes Complimentary one-off lump sum death and disability benefit BELS for eligible medical workers Donation of medical supplies to Hubei Province Donation to The Amity Foundation and WeDoctor helping people in need 爱是守护 融雪为春 友邦与您同在! #MXE, BOAP! + 疫情 我们与你同在 微医互联网总医院 AIR 友邦保险 微医 免费义诊 AIA 44#45AIA China: Differentiated Health & Well-being Strategic Framework AIP PREDICT PREVENT DIAGNOSE TREAT Customer-centric Journey: from "Payer" to "Partner" AIA Medical Network ^ AIA Wellness WE DOCTOR RECOVER WeDoctor Partnership No. of Registered Members Members' Upsell Ratio No. of Registered Customers 500,000+ No. of Directly Contracted Healthcare Providers 650+ ■ Domestic & international ■ In major cities With direct billing service Network Size 2x non-members Wellness Partners Direct Billing Ratio 苏宁金融 element fresh ▶新元素 SUNING FINANCE =Fit 私人健身教练 善诊 Personal Case Management ~70% >1,100 cases Integrated Single Disease Products Corporate Solutions Chronic Disease Management >200m 3,200+ hospitals 400,000+ doctors ■ Breast cancer ■ Childhood leukaemia Hypertension ■ Diabetes 45#46Pending#47Pending#48Pending#49Pending#50Unrivalled Distribution Strength Premier Agency Disciplined Execution of the Fundamentals Manpower 2.1x Active Agents since IPO(1) Productivity 2.7x 580 Next-Gen Partnerships Strategic / Exclusive Partners Citibank Regional Partner across 12 Markets (0) VONB per Active Agent since IPO(1) AB BPI BCA Indusind Bank GRUP BER PUBLIC BANK JV in Philippines Indonesia Malaysia India >12,000 Registered MDRT members MDRT 7x since IPO(1) Agency VONB ($m) 3,243 5.6x ill Bangkok Bank Thailand 171 AIA Non-Traditional Partners 3微医 WE DOCTOR Mainland China VPBank ASB SK Commonwealth Bank Vietnam New Zealand Australia South Korea Partnership VONB ($m) 6.7x 1,142 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 50 Note: (1) 2010 Excluding Tata AIA Life#51AIA Group - Delivering Sustainable Shareholder Value ■ Unprecedented long-term growth opportunities Significant and sustainable competitive advantages ■ Clear and aligned growth strategy Disciplined and consistent execution ◉ Experienced and proven management team AIA 51#52HEALTHIER, LONGER, AIA BETTER LIVES Q&A Session AIA 有保險: AIA AIA#53Definitions and Notes AIA " " In the context of our reportable market segments, Hong Kong refers to operations in Hong Kong Special Administrative Region and Macau Special Administrative Region; Singapore refers to operations in Singapore and Brunei; and Other Markets refers to operations in Australia (including New Zealand), Cambodia, India, Indonesia, Myanmar, the Philippines, South Korea, Sri Lanka, Taiwan (China) and Vietnam. The financial information in this presentation covers a twelve-month period from 1 January 2019 to 31 December 2019 for the current period and a twelve-month period from 1 January 2018 to 31 December 2018 for the prior period, unless otherwise stated. The financial information from 2010 to 2016 is presented on the 30 November financial year-end basis. The results of Tata AIA Life are accounted for the twelve-month periods ended 30 September 2019 and 30 September 2018 in AIA's consolidated results for the twelve-month periods ended 31 December 2019 and 31 December 2018 respectively. In 2019, VONB and ANP for Other Markets include 49% of the results from Tata AIA Life to reflect our shareholding. The reported VONB and ANP for 2018 have not been restated and do not include any contribution from Tata AIA Life. The IFRS results of Tata AIA Life are accounted for using the equity method. For clarity, TWPI does not include any contribution from Tata AIA Life. All figures are presented in actual reporting currency (US dollar) unless otherwise stated. Change on constant exchange rates (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. Actual investment return is the interest income from fixed income investments and actual investment returns of equities and real estate, as a percentage of average fixed income investments, equities and real estate over the period. This excludes unit-linked contracts and consolidated investment funds. AIA has a presence in 18 markets in Asia-Pacific - wholly-owned branches and subsidiaries in Hong Kong Special Administrative Region, Thailand, Singapore, Malaysia, Mainland China, South Korea, the Philippines, Australia, Indonesia, Taiwan (China), Vietnam, New Zealand, Macau Special Administrative Region, Brunei, Cambodia, Myanmar, a 99% subsidiary in Sri Lanka, and a 49% joint venture in India. Annualised new premiums (ANP) excludes pension business. CBA refers to Commonwealth Bank of Australia. CMLA refers to The Colonial Mutual Life Assurance Society Limited (including its affiliated companies), one of the largest life insurance providers in Australia. EV Equity is the total of embedded value, goodwill and other intangible assets attributable to shareholders of the Company. Expense ratio is calculated as operating expenses divided by TWPI. Fixed income yield is the interest income from fixed income investments, as a percentage of average fixed income investments measured at amortised cost over the period. This excludes unit-linked contracts and consolidated investment funds. Financial investment disclosure is enhanced to align with internal credit risk assessment. As a result of the enhancement, the presentation of government bonds has been refined. Free surplus is the excess of the market value of AIA's assets over the sum of the statutory liabilities and required capital. IFRS operating profit includes the expected long-term investment return for equities and real estate. Investment return and composition of investments exclude unit-linked contracts and consolidated investment funds. Investment return is defined as investment income with the addition of realised and unrealised gains and losses as a percentage of average investments excluding property held for own use. Investments include financial investments, investment property, property held for own use, and cash and cash equivalents. Investment property and property held for own use are at fair value. PVNBP margin refers to margin on a present value of new business premium basis. Operating profit after tax (OPAT), net profit, IFRS shareholders' allocated equity and IFRS shareholders' equity are shown post non-controlling interests. 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. Operating ROEV stands for operating return on EV and is calculated as EV operating profit, expressed as a percentage of the opening embedded value. Shareholders' allocated equity is total equity attributable to shareholders of the Company less fair value reserve. Tata AIA Life refers to Tata AIA Life Insurance Company Limited. TWPI consists of 100% of renewal premiums, 100% of first year premiums and 10% of single premiums, before reinsurance ceded. 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 in 2019 excludes the VONB attributable to non- controlling interests of $32m. VONB for 2018 has not been restated and is reported before deducting the amount attributable to non-controlling interests of $27m, as previously disclosed in our Annual Report 2018. VONB and VONB margin by distribution channel are based on local statutory reserving and capital requirements, before the deduction of unallocated Group Office expenses and exclude pension business. VONB and VONB margin by geographical market are based on local statutory reserving and capital requirements, before the deduction of unallocated Group Office expenses. VONB includes pension business. ANP and VONB margin exclude pension business and are before deduction of non-controlling interests. VONB margin is calculated as VONB divided by ANP. VONB for the margin calculations excludes pension business and is before deduction of non-controlling interests to be consistent with the definition of ANP. 53#54APPENDIX AIA HEALTHIER, LONGER, BETTER LIVES#55Pending#56Pending#57Pending#58Pending#59Geographical Market Performance Hong Kong ($m) VONB VONB Margin ANP TWPI OPAT AIA 2019 2018 CER AER Singapore ($m) 2019 2018 CER AER 1,621 1,712 (5)% (5)% VONB 352 357 (1)% 66.1% 62.0% +4.1pps +4.1pps VONB Margin 65.5% 65.4% +0.1pps +0.1pps 2,393 2,697 (11)% (11)% ANP 538 547 (2)% 13,107 11,444 +15% +15% TWPI 2,916 2,738 +8% +7% 1,931 1,814 +6% +6% OPAT 583 558 +6% +4% Mainland China ($m) 2019 2018 CER AER Malaysia ($m) 2019 2018 CER AER VONB 1,167 965 +27% +21% VONB 258 247 +7% +4% VONB Margin 93.5% 90.5% +3.1pps +3.0pps VONB Margin 63.1% 63.8% (0.7)pps (0.7)pps ANP 1,248 1,067 +22% +17% ANP 406 382 +9% +6% TWPI 4,804 4,006 +25% +20% TWPI 2,142 2,083 +6% +3% OPAT 1,061 870 +28% +22% OPAT 333 320 +6% +4% Thailand ($m) 2019 2018 CER AER Other Markets ($m) 2019 2018 CER AER VONB 494 447 VONB Margin 67.7% 73.1% ANP 729 611 +6% (5.5)pps +14% +11% (5.4)pps VONB 535 435 +27% +23% VONB Margin 41.9% 35.8% +6.1pps +6.1pps +19% ANP 1,271 1,206 +9% +5% TWPI 4,352 3,895 +7% +12% TWPI 6,681 6,377 +9% +5% OPAT 1,064 995 +3% +7% OPAT 823 826 +2% 59#60Pending#61Pending#62Pending#63Pending#64Resilient Working Capital Position Working Capital Movement ($b) (0.3) 10.3 10.0 0.8 (0.02) (2.0) 3.7 1.0 Working Capital End of 2018 Initial Payment for Increase in Working Net Purchase of Capital Remittances Borrowings Shares Held CMLA After by Employee Acquisition Acquisition Share-based Trusts Cost of Dividend Paid AIA 13.5 Resilient Position Working capital of $13.5b Net remittances of $3.7b AIA China remitted $1,022m; including a one-off from accumulated retained earnings AIA Thailand remitted additional $319m in 2019 due to timing of required regulatory approvals Leverage ratio of 9.0% Change in Fair Value Working Capital Reserve and End of 2019 Others 64#65Pending#66Pending#672019 VIF Movement VIF Movement ($b) 29.9 0.4 (1.0) 30.3 0.3 4.9 34.4 1.1 (2.6) 0.7 VIF End of 2018 Acquisition of CMLA VIF after Acquisition Expected Return VIF from VONB Contribution to Operating Variances VIF Before Non-operating Variances Investment Return Variances Other Non-operating Variances Exchange Rates and Other Items Note: Due to rounding, numbers presented in the chart may not add up precisely 33.7 AIA VIF End of 2019 67#68Pending#69Pending#70Pending#71Pending#72Total Invested Assets ($m) Fixed Income Equities Real Estate Others (2) Total Invested Assets Notes: AIA Par(1) Funds Other Policyholder and Shareholder Total Invested Assets $212.7b Total 61,090 114,411 175,501 18,739 7,482 26,221 Par (1) Funds 38% 1,065 5,829 6,894 As of 31 December 2019 (1) (2) Including Participating funds and Other participating business with distinct portfolios Cash and cash equivalents and derivatives 712 3,414 4,126 81,606 131,136 212,742 Other Policyholder and Shareholder 62% 72#73Pending#74Prudent and High-quality Fixed Income Portfolio Note: Total Fixed Income by Type Total $175.5b As of 31 December 2019 ■ Government & Government 44% Agency Bonds ■ Corporate Bonds 50% ■ Structured Securities 1% Total Fixed Income by Maturity Total $175.5b ■>10 Years & No Fixed Maturity 67% ■5-10 Years 18% ■ 1 - 5 Years 12% ■Loans and Deposits 5% ■ ≤1 Year 3% AIA 74#75Prudent and High-quality Fixed Income Portfolio Total Bonds by Accounting Classification Par (1) Funds Other Policyholder and Shareholder Total $166.1b Total AIA ($m) ■ Other policyholder & shareholder (AFS) 64% Available For Sale (AFS) 33,455 105,397 138,852 ■ Par Funds (AFS) 20% Fair Value Through Profit or Loss (FVTPL) 25,112 2,154 27,266 ■ Other policyholder & shareholder (FVTPL) 1% ☐ ■ Par (1) Funds (FVTPL) 15% Total Bonds 58,567 107,551 166,118 Notes: As of 31 December 2019. (1) Including Participating funds and Other participating business with distinct portfolios 75#76Pending#77Pending#78Pending#79Pending#80Impairment Experience During Global Financial Crisis AIA AIA Impairments on Invested Assets ($m) 2008 Impairment Charges as % of Invested Assets 142 67 5.6% 1.8% 1.5% 1.5% 0.3% 1 2007 2008 2009 2010 2011 Co. A Co. B Co. C Co. D ATA 80 60#81Pending#82Pending#83Sensitivity Analysis - EV Equity prices +10% Sensitivity of EV as at 31 December 2019 1.6% Equity prices -10% (1.6)% Interest rates +50 bps 1.2% Interest rates -50 bps (1.3)% Presentation currency 5% appreciation (3.0)% Presentation currency 5% depreciation Lapse/discontinuance rates +10% Lapse/discontinuance rates -10% (1.6)% 1.8% Mortality/morbidity rates +10% (7.5)% Mortality/morbidity rates -10% Maintenance expenses -10% Expense inflation set to 0% 3.0% 7.3% 1.1% 1.4% 83 88 AIA#84Pending#85Note: Currency Sensitivity (3.0)% 5% fall in local market currencies vs US dollar (1,837) EV ($m) 61,985 2019 EV 3.0% (3.1)% 5% rise in local market currencies vs US dollar 5% fall in local market currencies vs US dollar The currency sensitivities shown assume a constant Hong Kong dollar to US dollar exchange rate 1,837 VONB ($m) 4,154 (129) 2019 VONB 3.1% 5% rise in local market currencies vs US dollar 129 85 98 AIA