AIA Financial Overview and ESG Commitment
Definitions and Notes
AIA
In the context of our reportable segments, Hong Kong refers to operations in the Hong Kong Special Administrative Region (SAR) and the Macau SAR; 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. Growth rates are shown against the corresponding period of 2021 unless otherwise stated. Comparatives for balance sheet items are shown against the position as at
31 December 2021 unless otherwise stated.
ANP and VONB for Other Markets include the results from our 49 per cent shareholding in Tata AIA Life Insurance Company Limited (Tata AIA Life). ANP and VONB do not include any
contribution from our 24.99 per cent shareholding in China Post Life Insurance Co., Ltd. (China Post Life). The IFRS results of Tata AIA Life and China Post Life are accounted for using the
equity method in Other Markets and Group Corporate Centre, respectively. For clarity, TWPI does not include any contribution from Tata AIA Life and China Post Life.
Both the results of Tata AIA Life and China Post Life are reported on a one-quarter-lag basis. The results of Tata AIA Life are accounted for the twelve-month period ended 30 September 2022
and the twelve-month period ended 30 September 2021 in AIA's consolidated results for the year ended 31 December 2022 and the year ended 31 December 2021 respectively. The results of
China Post Life starting from the completion of the investment on 11 January 2022 are accounted for in AIA's consolidated results for the year ended 31 December 2022.
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 other
participating business with distinct portfolios. 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's group available capital, group prescribed capital requirement (GPCR) and group minimum capital requirement (GMCR) are calculated based on the Local Capital Summation Method
(LCSM). From 1 January 2022, the Group LCSM surplus is calculated as the excess of group available capital over GPCR and the Group LCSM cover ratio is calculated as the ratio of group
available capital to GPCR on the new prescribed capital requirement (PCR) basis. Prior to 1 January 2022, the Group LCSM surplus and the Group LCSM cover ratio were calculated using the
GMCR on the previously reported minimum capital requirement (MCR) basis.
AIA has a presence in 18 markets - wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar,
New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei, Macau SAR 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.
Contractual service margin (CSM) is a component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the entity will recognise as it
provides insurance contract services under the insurance contracts in the group.
EV Equity is the total of embedded value, goodwill and other intangible assets attributable to shareholders of the Company, after allowing for taxes.
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