Healthier, Longer, Better Lives

Definitions 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 from 2017 to 2020 is presented on the 31 December financial year-end basis, and 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 period ended 30 September 2020 and the twelve-month period ended 30 September 2019 in AIA's consolidated results for the year ended 31 December 2020 and the year ended 31 December 2019 respectively. VONB and ANP for Other Markets included the results from our 49% in Tata AIA Life. 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. ■ AIA's IFRS accounting treatment for the recognition and measurement of insurance contract liabilities of Hong Kong participating business has been refined to reflect expected changes to policyholder bonuses. Comparative information has been adjusted for 2019. Comparative information for 2018 and prior years has not been restated. Prior to 2020, the Group reflected the withholding tax charge under Group Corporate Centre. Starting from 2020, the Group has enhanced the segment information to present the withholding tax charge in the operating segment where the withholding tax arises. Comparative information has been adjusted to conform to current year presentation. ☐ 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 - wholly-owned branches and subsidiaries in Mainland China, Hong Kong Special Administrative Region, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei, Macau Special Administrative Region, New Zealand and a 49% joint venture in India. ANP represents 100% of annualised first year premiums and 10% of single premiums, before reinsurance ceded. EV Equity is the total of embedded value, goodwill and other intangible assets attributable to shareholders of the Company. 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. Free surplus is the excess of the market value of AIA's assets over the sum of the statutory liabilities and required capital. The Hong Kong Insurance Authority (HKIA) is introducing a group-wide capital framework for monitoring insurance groups under its supervision. The cover ratio of group available capital to group minimum capital requirement (MCR) under the Local Capital Summation Method (LCSM) is based on our current understanding of the framework as it applies to the Group. 43

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