AIA Group 1299

Re: AIA Group 1299

Postby winston » Mon Oct 28, 2019 9:50 am

not vested

<Blue Chip Results>AIA (01299.HK) 3Q19 CER VONB Up 1%, In-line

AIA (01299.HK) announced the results for the third quarter ended 30 September 2019, where the value of new business (VONB) grew 1% yearly to US$980 million on a constant exchange rate basis (or up 11% yearly on an actual exchange rate basis).

The group's VONB was estimated to be US$989 million by Credit Suisse and US$984 million by the market.

Annualised new premiums (ANP) decreased by 8% yearly to US$1.444 billion.

VONB margin improved to 67%, up 6 ppts, mainly driven by a positive shift in both product and geographical mix, operating assumption changes and the positive effect of a tax rule change that increased the tax deductibility of commissions in Mainland China.

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Mon Oct 28, 2019 10:15 am

not vested

Hong Kong Turmoil Slams AIA as Mainland Visitors Decline

by Peter Vercoe and Bei Hu

(Bloomberg) -- More than four months of turmoil in Hong Kong and the chilling effect on Chinese tourism to the city have taken their toll on insurer AIA Group Ltd., with policy sales slumping.

The value of new business of its largest unit, a measure of future profitability of new policies, fell by double-digits in the third quarter, AIA said in a statement to the local stock exchange Monday.

Key Insights:

While AIA didn’t give an exact figure for the slide in Hong Kong, it said the group’s overall value of new business was little change in the quarter at $980 million.

Excluding Hong Kong, new business value rose 14%. New business to Hong Kong residents actually rose. But that was wiped out by the decline in sales to mainland visitors, which “broadly tracked” the drop in overall visitor arrivals to the city in July and August, the company said.

Mainland Chinese visitors buy policies in Hong Kong as a way to move capital offshore in times of economic uncertainty and expected currency weakness. The yuan depreciated by nearly 4% in the quarter.

AIA struck a cautious note about its outlook: “Some of our markets are experiencing headwinds from the lower interest rate environment, falling consumer confidence and rising political and trade tensions,” it said.

“In particular, the reduced numbers of mainland Chinese visitors to Hong Kong continue to affect sales.”The figures were released more than two weeks early after AIA became aware that information was circulating purporting to relate to the financial performance of one unit. That information was “incomplete” and inaccurate, it said.

Source: Bloomberg

https://finance.yahoo.com/news/hong-kon ... 55674.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Tue Oct 29, 2019 5:23 am

Unrest cramps AIA new business growth to 1pc

by Kevin Xu

AIA's shares closed 3.68 percent higher despite the tepid performance. Singtao

AIA (1299) announced that the value of new business in the third quarter climbed 1 percent year-on-year to US$980 million (HK$7.66 billion), better than some analysts' expectations, but its biggest market Hong Kong saw a double-digit decline in VONB during the period.

The insurer recorded its smallest ever quarterly growth in VONB - which measures expected profit from new premiums and is a key indicator of growth - as anti-government protests in Hong Kong hit sales of insurance products to mainland visitors.

Growth from proprietary agency and bancassurance channels was offset by a substantial decline in VONB through the retail independent financial advisor channel in Hong Kong.

Excluding Hong Kong, new business grew 14 percent, with mainland China emerging as its "fastest-growing" market in the quarter, AIA said.

AIA posted a double-digit reduction in VONB in Hong Kong in the third quarter."Double-digit VONB growth from domestic customers was offset by a decline in VONB from mainland Chinese visitors which broadly tracked the reduction in overall visitor arrivals to Hong Kong reported in July and August," the insurer said.

VONB in the first nine months increased 13 percent year-on-year to US$3.26 billion.

Meanwhile, annualized new premiums fell 8 percent year-on-year to US$1.44 billion.

Shares of AIA closed 3.68 percent higher at HK$77.5 yesterday despite the insurer's tepid quarterly performance. The stock had fallen 12.1 percent in the third quarter, amid investor worries about the impact of the protests on its business.

AIA joined other companies to flag concerns about the impact of the protests on domestic business, with the city facing its first recession in a decade.

"Some of our markets are experiencing headwinds from the lower interest rate environment, falling consumer confidence and rising political and trade tensions," the company said in its earnings statement.

"In particular, the reduced numbers of mainland Chinese visitors to Hong Kong continue to affect sales."

AIA and other insurers in Hong Kong get a large share of their sales from selling insurance products to China visitors who are seeking better products and overseas investment opportunities.

Anti-government demonstrations in the SAR, which began in June, have resulted in a sharp drop in tourist arrivals, mainly those from the mainland, hitting sales of luxury goods and insurance policies, among other things.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 1029&sid=2
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Fri Dec 27, 2019 1:47 pm

AIA Swiftly Applies for Turning Branch into Arm as PRC Removes Foreign Ownership Limit on Life Insurers

AIA (01299.HK) has quietly released an announcement on its Chinese official website today, stating its positive response to CBIRC's new opening-up measures, by planning to transform its Shanghai Branch into a wholly-owned life insurance subsidiary, reported Shanghai Securities News.

Any approval for the application would mean AIA has an independent legal person qualification in China, the report said.

Source: AAstocks.com
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Wed Jan 22, 2020 11:00 am

Fading HK protest-related uncertainty

While 4Q19F was likely tough yoy for VONB, mainly due to HK’s drag from the MCV segment, we feel more comfortable about the outlook for growth.

We think that we may be past the worst for yoy MCV declines on a monthly basis, based on search hits in China of the phrase ‘Hong Kong’ (in Chinese).

We are also pleasantly surprised that there have been no signs of insurance agent numbers falling in HK, which is contrary to our initial expectations.

We re-assess AIA’s long-term growth rate potential across its markets.

Our ‘g’ assumption rises as a result. Maintain Add rating; TP raised to HK$102.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... CF7A73A37B
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Tue Feb 18, 2020 9:15 am

Life insurance turning more desirable?

HK industry agent numbers rose 3.9% mom and an estimated 20% yoy in Dec 2019 despite the challenges posed by HK protests.

This is the third-highest mom growth rate over the past sixteen years.

We think this could be due to strong sales of tax-deferred insurance products as well as possibly employment pressures in other industries.

We reiterate our Add rating with an unchanged TP of HK$96. AIA Group remains our top pick among our coverage universe.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 5BEB159457
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Fri Mar 13, 2020 7:55 am

not vested

AIA new business hit by 'significant disruption'

by Avery Chen

AIA Group (1299) warned of a "significant disruption" in its first-quarter new business sales amid the Covid-19 pandemic, after its biggest market, Hong Kong, saw a 5 percent drop in new business value last year.

Shares of the Hong Kong-based insurer fell 4.44 percent to HK$68.8 yesterday, with a market turnover of HK$3.17 billion, although its 2019 net profit soared 1.5 times to US$6.65 billion (HK$51.87 billion) last year.

New business value growth slowed to 6 percent last year, lower than expected, affected by social unrest in the second half.

The total new business value rose to US$4.15 billion in 2019. Hong Kong market, which attributed around 40 percent of total new business value, declined 5 percent year-on-year to US$1.62 billion, due to sales drop from mainland visitors in the second half amid protests.

The new business value from the mainland rose by 27 percent to US$1.17 billion last year, contributing around 28 percent of the total new business value.

AIA expects the virus to cause a "temporary but significant disruption" on its new business sales and "the speed of recovery and the extent of any long-term impact remain uncertain."

Chief executive and president Ng Keng-hooi said the company has been selling most of its products face-to-face, and although it has launched digital platforms, it could not completely replicate the traditional model.

AIA has moved sales, meeting and recruitment activities online, Ng said, with online sales contributing around 60 percent of new business in the past one to two weeks. All branches in mainland China have reopened, he added, expressing confidence that the insurance industry would overcome the current headwinds.

Ng said AIA has submitted its application for converting its Shanghai Branch into a wholly-owned subsidiary to the China Banking and Insurance Regulatory Commission, the virus will not affect application progress.

Regional chief executive Jacky Chan Wing-shing said AIA Hong Kong launched an online selling platform two years ago, with 10 products available as they don't require financial needs analysis, the insurer and peers in the industry are continuing to discuss with the Insurance Authority to further open up remote insurance sales.

Chan said the insurer has not yet seen a significant increase in claims related to the virus so far.

Source: The Standard

https://www.thestandard.com.hk/section- ... isruption'
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Fri Mar 13, 2020 11:44 am

not vested

FY19 result briefing – Positive structural outlook to outweigh short-term pains

FY19 OPAT and VONB missed our and consensus forecast by 2-4% on weaker HK and China results

Significant impact of COVID-19 on 1Q20F numbers expected but positive structural outlook intact

Still the best-positioned insurer to capture Asia’s emerging growth opportunity

Maintain BUY with TP of HK$102

Source: DBS

https://researchwise.dbsvresearch.com/R ... ccffkgaifc
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Fri Mar 13, 2020 11:49 am

not vested

Tough times to continue near-term

Slight miss of 1-2% versus our estimates for FY19 VONB, EV, and operating profit after tax, while net profit beat our estimates by 5%.

HK & mainland China saw a marked slowdown in yoy VONB growth in 2H19 compared to 1H19. AIA sees a temporary but significant disruption near-term.

AIA could revise its actuarial investment return assumptions to reflect lower bond yields at its 1H20F results, with its new CEO to present these results.

Reiterate Add rating, but cut TP by 18% to HK$79.0 on reduced FY20F estimates for VONB, EV and net profit, as we assume lower bond yields.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 4DD3881F0C
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

Re: AIA Group 1299

Postby winston » Thu May 14, 2020 9:15 am

not vested

Ratings & TPs on AIA (01299.HK) (Table)

2020/05/11

AIA (01299.HK) is expected to unveil 1Q20 result highlights on Friday (15th).

According to brokers' forecasts as compiled by our reporters, AIA's 1Q20 value of new business (VONB) may range US$818-912 million, down 22%-30% YoY.

The median forecast was US$863 million, down 26.2% yearly.

The market expected the insurer's HK market to remain weak in 1H20 as lockdown measures have impeded mainland customers to sign insurance policies in HK.

UBS Cuts AIA (01299.HK) TP to $83; Expects 1Q VoNB Drop of 24% on CER

Brokers│Investment Ratings│TPs (HK$)

DBS Vickers│Buy│102
Daiwa│Buy│100
CICC│Outperform│95
JPMorgan│Overweight│91
HSBC Global Research│Buy│90
Citigroup│Buy│90
Goldman Sachs│Buy (CL Buy)│86
Morgan Stanley│Overweight│85
Credit Suisse│Outperform│85
UBS│Buy│85->83
Nomura│Neutral│75.54
BofA Securities│Neutral│75.1
Macquarie│Neutral│75

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118524
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to A to B

Who is online

Users browsing this forum: No registered users and 7 guests