IFRS 17 Update

Non-Participating Business (GMM) Accounting Treatment AIA Non-Participating Business (GMM) Accounting Treatment of Insurance Contract Liabilities and Invested Asset Movements Insurance Contract Liabilities Assumption Changes Operating Invested Assets Mark-to-Market Movement Discount Rates Fixed Income Equities & Real Estate (2) IFRS 17 CSM OCI(1) OCI(1) Net Profit Implications IFRS 17 vs IFRS 4 OCI is smaller and shareholders' equity more stable ■ Discount rate changes on insurance contract liabilities and mark-to-market on fixed income both flow through OCI ■ >95% of invested assets continue on mark-to-market basis IFRS 4 Locked-in Locked-in OCI Net Profit Net profit treatment similar vs IFRS 4 Notes: Excludes unit-linked and short-term contracts under PAA approach for simplicity (1) (2) Except for unit-linked with significant protection benefits which is recognised through net profit The classification of real estate under IFRS 17 in the table represents investment properties. Classification of properties held for own use generally follows IAS 16. The classification of real estate under IFRS 4 in the table represents investment properties only 27 27

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