AIA's Financial Overview Post IFRS 17 Transition
Net Profit and Shareholders' Equity Less Volatile Going Forward
Illustrative Net Profit and Shareholders' Equity Under IFRS 17
OPAT
Short-term market fluctuations (1)
Other non-operating items
Net Profit
Shareholders' Allocated Equity
1
1
2
2
Non-par business (3) and surplus assets only
Mark-to-market on equities and real estate
- Discount rate changes on insurance contract liabilities
(unit-linked with significant protection benefits)
■ Par business mark-to-market allowed for within CSM
■ Realised capital gains/losses on FVOCI bonds
■ Mark-to-market movement on FVTPL bonds
■ Provision for Expected Credit Losses (ECL)
■ Other non-operating expenses
AIA
3
Other Comprehensive Income (OCI) (2)
3
Non-par business (3) and surplus assets only
Mark-to-market movement on FVOCI bonds under fair
value reserve
Shareholders' Equity
- Discount rate changes on insurance contract liabilities
(other than unit-linked with significant protection benefits)
under insurance finance reserve
Notes:
(1)
(2)
(3)
Short-term investment and discount rate variances
OCI represents fair value reserve and insurance finance reserve
Non-participating (non-par) business includes all insurance liabilities under the GMM model, covering traditional protection, unit-linked with significant protection benefits, universal life and other participating business without distinct portfolios
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