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AIA Group Limited (AAGIY)
OTHER OTC:AAGIY
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AIA Group
(OTC:AAGIY)
Rating:76Outperform
Price Target:
$38.00
â–²(9.51%Upside)
AIA Group (AAGIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$92.49B
Dividend Yield3.87%
Average Volume (3M)31.47K
Price to Earnings (P/E)14.0
Beta (1Y)0.39
Revenue Growth7.35%
EPS Growth88.99%
CountryUS
Employees23,000
SectorFinancial
Sector Strength78
IndustryInsurance - Life
Share Statistics
EPS (TTM)1.28
Shares Outstanding2,657,498,300
10 Day Avg. Volume32,292
30 Day Avg. Volume31,474
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)2.97
Price to Sales (P/S)0.00
P/FCF Ratio13.99
Enterprise Value/Market Cap5.77
Enterprise Value/Revenue6.27
Enterprise Value/Gross Profit51.84
Enterprise Value/Ebitda18.33
Forecast
1Y Price Target
$38.00Price Target Upside9.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
AIA Group Business Overview & Revenue Model
Company DescriptionAIA Group Limited, together with its subsidiaries, provides life insurance based financial services. The company offers life insurance, accident, and health insurance and savings plans; and employee benefits, credit life, and pension services to corporate clients. It also distributes investment and other financial services products. The company sells its products through a network of agents and partners in Mainland China, Hong Kong, Macau, Thailand, Singapore, Brunei, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan, Vietnam, and India. AIA Group Limited was founded in 1919 and is based in Central, Hong Kong.
How the Company Makes MoneyAIA Group makes money primarily through the sale of life insurance policies and other related financial products. The company's revenue model is largely driven by the premiums collected from policyholders. These premiums are invested in a diverse portfolio of assets, generating returns that contribute to the company's profitability. AIA also earns income from its investment-linked insurance policies, where part of the premium is invested in underlying funds that can yield returns. Additionally, AIA benefits from its extensive distribution network, which includes a mix of direct agents and partnerships with banks (bancassurance), thereby expanding its reach and customer base. The company also engages in strategic partnerships and acquisitions to bolster its market presence and enhance its service offerings, which further contribute to its earnings.
AIA Group Earnings Call Summary
Earnings Call Date:Mar 14, 2025
(Q4-2024)
| % Change Since: 9.53%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive, highlighting strong growth in VONB, operating profit, and cash flow, alongside significant geographic expansion, particularly in China. However, challenges such as interest rate impacts and regulatory changes in Hong Kong moderated the outlook.Q4-2024 Updates
Positive Updates
Record Value of New Business
Value of new business (VONB) was up by 18% to a record high of $4.7 billion.
Increased Operating Profit and Cash Flow
Operating profit after tax reached a record high, up by 12% per share, and underlying free surplus generation grew by 10% per share.
Significant Growth in Premier Agency and Partnerships
Premier agency contributed 74% of VONB with a 16% VONB growth, while bancassurance grew VONB by 39%.
Expansion into New Geographies in China
AIA received approvals for four new branches, adding another 100 million to the addressable market.
Negative Updates
Interest Rate Challenges
Lower interest rates in China and Thailand impacted financial results, with a $1.3 billion negative variance in investment return.
Pressure from Regulatory Changes
New guidance related to par policies in Hong Kong could impact the competitive landscape and financial results.
Company Guidance
The call provided comprehensive guidance on AIA's financial performance for 2024, highlighting significant growth across key metrics. The company achieved an 18% increase in the value of new business (VONB) to $4.7 billion, and a 9% per share rise in EV equity to $71.6 billion after returning $6.5 billion to shareholders. Operating profit after tax grew by 12% per share, while underlying free surplus generation, a crucial measure of cash generation, increased by 10% per share. AIA's capital management policy led to a recommended 10% increase in the final dividend per share and a new $1.6 billion share buyback. AIA's Premier Agency contributed 74% of VONB, with agency recruitment up by 18%. The bancassurance channel saw VONB growth of 28% to $1.3 billion, driven by advanced analytics and strategic partnerships. AIA Hong Kong and China were significant contributors, with VONB growth of 23% and 20% respectively. Overall, the results demonstrate AIA's strategic focus on profitable growth, leveraging digital tools and a robust distribution network to drive long-term shareholder value.AIA Group Financial Statement Overview
Summary
AIA Group shows strong profitability and cash flow management, with a stable balance sheet. However, inconsistent revenue growth and a declining equity ratio are areas for improvement.Income Statement
AIA Group's income statement reflects strong profitability, with a solid gross profit margin due to consistent revenue streams. Net profit margin has improved, indicating effective cost management and operational efficiency. However, the revenue growth rate has been inconsistent, showing a decline in recent years, which could be a concern for future growth.72
Positive
Balance Sheet
The balance sheet shows a healthy equity position with a reasonable debt-to-equity ratio, which indicates controlled leverage and financial stability. Return on equity is decent, suggesting that the company is effectively using equity to generate profits, but the equity ratio has been declining, which could point to increased liabilities over time.68
Positive
Cash Flow
Cash flow analysis reveals strong free cash flow generation, which supports operational flexibility and potential for reinvestment. The operating cash flow to net income ratio is robust, indicating good cash conversion efficiency. However, recent fluctuations in free cash flow growth rate suggest potential volatility in cash generation capabilities.75
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.36B | 20.59B | 17.76B | 46.36B | 50.85B |
| Gross Profit | 20.36B | 19.76B | 17.76B | 46.36B | 50.85B |
| EBITDA | 8.05B | 5.46B | 8.44B | 11.07B | 11.37B |
| Net Income | 6.84B | 3.76B | 3.33B | 7.43B | 5.78B |
Balance Sheet | |||||
| Total Assets | 305.45B | 286.32B | 270.47B | 339.87B | 326.12B |
| Cash, Cash Equivalents and Short-Term Investments | 106.39B | 100.14B | 8.02B | 3.91B | 4.40B |
| Total Debt | 13.67B | 12.16B | 11.21B | 9.64B | 7.87B |
| Total Liabilities | 264.64B | 244.72B | 11.21B | 9.64B | 7.87B |
| Stockholders Equity | 40.49B | 41.11B | 44.67B | 60.47B | 63.20B |
Cash Flow | |||||
| Free Cash Flow | 3.03B | 10.59B | 9.48B | 3.27B | 2.10B |
| Operating Cash Flow | 3.26B | 10.92B | 9.87B | 3.91B | 2.36B |
| Investing Cash Flow | -945.00M | -2.14B | -817.00M | -2.78B | -1.22B |
| Financing Cash Flow | -5.69B | -6.07B | -4.79B | -1.66B | 392.00M |
AIA Group Technical Analysis
Neutral
34.70
Price Trends
33.40
Positive
31.34
Positive
30.46
Positive
Market Momentum
0.58
Positive
50.28
Neutral
3.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAGIY, the sentiment is Neutral. The current price of 34.7 is below the 20-day moving average (MA) of 35.54, above the 50-day MA of 33.40, and above the 200-day MA of 30.46, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 3.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AAGIY.
AIA Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $52.52B | 12.76 | 16.08% | 2.90% | 8.77% | 110.90% | |
77 Outperform | $32.30B | 14.92 | 12.82% | 2.63% | -14.78% | 34.80% | |
76 Outperform | $92.49B | 14.04 | 16.74% | 3.87% | 7.35% | 88.99% | |
72 Outperform | $14.11B | 9.55 | 14.68% | 2.12% | 1.69% | 25.54% | |
70 Neutral | $38.08B | 17.02 | 8.04% | 5.07% | 2.47% | 6.88% | |
67 Neutral | $16.86B | 11.90 | 9.77% | 3.76% | 12.07% | -8.35% | |
63 Neutral | $55.10B | 15.97 | 14.41% | 2.28% | -12.66% | -29.30% |
* Financial Sector Average
Performance Comparison
AAGIY
AIA Group
34.70
6.98
25.18%
AFL
AFLAC
102.28
11.51
12.68%
MET
Metlife
78.37
7.06
9.90%
PRU
Prudential Financial
107.15
-10.55
-8.96%
PUK
Prudential
25.03
6.30
33.64%
UNM
Unum Group
80.47
29.85
58.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.