IFRS 17 Impact and OPAT Analysis

Net Profit Higher and Less Volatile $b OPAT FY22 Reconciliation of OPAT to Net Profit IFRS 4 IFRS 17 6.4 6.4 Short-term fluctuations in equities/real estate and discount rates (2.3) (1.1) Non-operating movements on derivative financial instruments for par business (2.0) Other non-operating items Net Profit (1.8) (2.0) 0.3 3.3 Net Profit AIA Mark-to-market on equities and real estate in par business absorbed within the CSM ■ Hedging derivatives within par business offset by change in insurance contract liabilities Includes other non-operating expenses, realised capital gains/losses on FVOCI bonds, mark-to-market movement on FVTPL bonds, and changes in provision for Expected Credit Losses (ECL) 13

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