2021 VONB Performance and Strategic Highlights
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, Cambodia, India, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan
(China) and Vietnam.
The financial information from 2017 onwards is presented on the 31 December financial year-end basis, and the financial information from 2016 and before 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 2021 and the twelve-month period ended 30 September 2020 in AIA's consolidated results for the
year ended 31 December 2021 and the year ended 31 December 2020 respectively. VONB and ANP for Other Markets included the results from our 49% shareholding in Tata AIA Life. The
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.
The financial information from 2019 onwards is presented after the change in AIA's IFRS accounting treatment for the recognition and measurement of insurance contract liabilities of Hong Kong
participating business. The financial information from 2018 and before is presented before the above-mentioned changes.
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 Everest refers to AIA Everest Life Company Limited, a subsidiary of AIA Co. acquired from The Bank of East Asia, Limited.
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, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei, Macau Special Administrative Region and a 49% joint venture in India.
ANP represents 100% of annualised first year premiums and 10% of single premiums, before reinsurance ceded.
ANW is the market value of assets in excess of the assets backing the policy reserves and other liabilities of the life (and similar) business of AIA, plus the IFRS equity value of other activities,
such as general insurance business, less the value of intangible assets. It excludes any amounts not attributable to shareholders of AIA Group Limited. ANW for AIA is stated after adjustment to
reflect consolidated reserving requirements. ANW by market is stated before adjustment to reflect consolidated reserving requirements, and presented on a local statutory basis.
BEA refers to The Bank of East Asia, Limited.
China Post Life refers China Post Life Insurance Co., Ltd.
EV Equity is the total of embedded value, goodwill and other intangible assets attributable to shareholders of the Company, after allowing for taxes.
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, required capital and the investment in China Post Life at cost.
Holding company financial resources represent the debt and equity securities, deposits, cash and cash equivalents and dividends paid but not settled by subsidiaries, net of obligations under
repurchase agreements, at the Group's listed holding company, AIA Group Limited.
IFRS operating profit includes the expected long-term investment return for equities and real estate.
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