AIA Financial Overview and ESG Commitment
AIA
IFRS 17 Reinforces Prudence in AIA's Embedded Value
IFRS 9 and 17 Update
Reconciliation of
IFRS 17 Comprehensive Equity to EV Equity ($b)
As at 1 Jan 2022
Net CSM
Shareholders'
Equity
1.3x
+3
(7)
101
(19)
IFRS 17
Comprehensive
Equity
78
Risk
Adjustment (1)
Cost of
Capital in EV
Valuation
Differences
EV Equity (2)
Notes:
(1)
Risk adjustment is net of reinsurance
(2) After HKRBC early adoption and release of additional resilience margins
IFRS 17 comprehensive equity and EV Equity
represent the value of historical and future profits
on different bases
Valuation differences primarily driven by
higher discount rates
As at 1 Jan 2022, IFRS 17 comprehensive equity
was 1.3x EV Equity
Expect to observe a similar ratio of new business
CSM to VONB
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