IFRS 17 Adoption & Financial Impact Overview
2. Net Investment Result
$3.3b Net Investment Result from Non-Par and Surplus Assets
5.3
FY22 Net Investment Result ($b)
From Non-Par and Surplus Assets
(1.8)
Non-Par and Surplus Assets
By Asset Type
AIA
Expected Return
for Equities and
1.2
Real Estate
Interest
Revenue
4.2
Investment
Return
Insurance
Finance
Expenses (3)
Cash & Others
Real Estate
Equities
5%
3%
(0.3)
3.3
10%
Investment
Management
Expenses
Net
Investment
Result
$115.2b
Fixed
As of 31 Dec 2022
82% Income
Fixed Income
4.2%
As of 31 Dec 2022 ($b)
Yield(1)
Unwind of discount rate on non-par insurance contract liabilities
Uses a level discount rate locked-in at contract issue
Non-par and surplus assets
115.2
53%
Total
Investment
4.5%
Return(2)
Average insurance contract liabilities (4) balance of $63.0b in 2022
Rate changes gradually over time with new business
Par business
103.1
47%
Invested Assets
218.3
100%
(1)
Notes: Excludes participating funds and other participating business with distinct portfolios, unit-linked contracts and consolidated investment funds. Due to rounding, numbers presented in the chart may not add up precisely
Interest revenue from fixed income investments, as a percentage of average amortised cost of fixed income investments over the period
(2)
(3)
Interest revenue from fixed income investments and expected long-term returns of equities and real estate, as a percentage of fixed income investments, equities and real estate over the period
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
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