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AIA Group Limited (AAGIY)
OTHER OTC:AAGIY
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AIA Group
(OTC:AAGIY)
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Rating:73Outperform
Price Target:
$47.00
â–²(9.46% Upside)
AIA Group's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust growth in key metrics and strategic expansion plans are promising. However, technical indicators suggest caution due to overbought conditions, and valuation remains fair but not undervalued.
Positive Factors
Strong Financial Performance
AIA's robust financial performance, with significant profit and surplus growth, indicates effective management and operational efficiency, supporting long-term sustainability.
Strategic Expansion
AIA's strategic focus on expanding in China with a 40% CAGR target underscores its commitment to capturing growth opportunities in emerging markets, enhancing future revenue potential.
Technological Advancements
Investments in AI-driven technology improve operational efficiency and customer service, providing a competitive edge and supporting long-term profitability.
Negative Factors
Inconsistent Revenue Growth
Inconsistent revenue growth poses a risk to long-term stability, as it may indicate challenges in maintaining market share or adapting to market changes.
Declining Equity Ratio
A declining equity ratio suggests rising liabilities, which could strain financial stability and limit the company's ability to invest in growth opportunities.
Regulatory Challenges
Regulatory challenges in key markets like Malaysia can hinder growth and require strategic adjustments, potentially affecting long-term revenue and market positioning.
AIA Group (AAGIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$113.24B
Dividend Yield2.11%
Average Volume (3M)9.22K
Price to Earnings (P/E)19.3
Beta (1Y)0.25
Revenue Growth6.02%
EPS Growth30.95%
CountryUS
Employees23,000
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)0.95
Shares Outstanding2,626,654,300
10 Day Avg. Volume0
30 Day Avg. Volume9,219
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.97
Price to Sales (P/S)3.92
P/FCF Ratio26.34
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue3.60
Enterprise Value/Gross Profit3.98
Enterprise Value/Ebitda14.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through the sale of insurance premiums from its life and health insurance products. The company earns income by collecting premiums from policyholders in exchange for providing coverage and benefits. Additionally, AIA earns investment income from the investment of these premium funds in various assets, such as stocks, bonds, and real estate. Key revenue streams include individual life insurance, group insurance, and health insurance products. The company also benefits from fee-based income generated through asset management and wealth management services. Strategic partnerships with banks and financial institutions further enhance AIA's distribution capabilities, allowing for a broader reach and increased sales. Overall, AIA's diverse product offerings and extensive network contribute significantly to its earnings.
AIA Group Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted robust growth in key financial metrics, significant achievements in various geographic segments, and strategic advancements in technology. While there were some regulatory challenges and tax impacts, the positive aspects significantly outweighed the negatives.Q2-2025 Updates
Positive Updates
Record Value of New Business Growth
Value of new business (VONB) increased by 14% to a record high of $2.8 billion.
Strong Financial Performance Across Key Metrics
Operating profit after tax per share rose by 12%, and underlying free surplus generation per share grew by 10%.
Dividend Increase and Shareholder Returns
AIA returned $3.7 billion to shareholders and declared a 10% increase in the interim dividend per share.
Exceptional Growth in Hong Kong
Hong Kong achieved record VONB of $1.1 billion, up 24% with strong demand from both domestic and Mainland Chinese visitors.
Successful Expansion in China
VONB in China grew to $743 million with growth accelerating to 15% in the second quarter. New regions grew by 36%.
Strong ASEAN Region Performance
VONB grew by 20% to over $1 billion for the first time, with agency and partnership channels both showing strong growth.
India's Impressive Growth
Tata AIA Life's VONB increased by 38%, maintaining its position as the market leader in retail protection.
Operational and Technological Advancements
AIA's AI-driven health technology and analytics company, Amplify Health, contributed to a 250 basis point improvement in loss ratio.
Negative Updates
Impact of Global Minimum Tax
The introduction of the global minimum tax affected the effective tax rate, which increased to 18%.
Regulatory Challenges in Malaysia
The regulatory review on health insurance in Malaysia temporarily impacted agency channel growth.
Company Guidance
During the call, AIA provided robust guidance showcasing its strong financial performance in the first half of 2025. The company reported a 14% increase in the value of new business (VONB) to a record $2.8 billion, with substantial contributions from various regions. AIA's underlying free surplus generation grew by 10% per share, and operating profit after tax rose by 12% per share. This financial strength allowed for a 10% increase in the interim dividend per share, returning $3.7 billion to shareholders. In Hong Kong, record VONB of $1.1 billion was achieved, marking a 24% increase, while Mainland China saw a 15% growth in VONB in the second quarter. AIA's operations in ASEAN and India also showed significant growth, with VONB up by 20% and 38%, respectively. The company emphasized its strategic expansion, highlighting a 40% compound annual growth rate (CAGR) target for new regions in China over the next five years. AIA maintained a strong operating return on embedded value (ROEV) of 17.8% and an operating return on equity (ROE) of 16.2%, supported by its disciplined capital management and high-quality product mix.AIA Group Financial Statement Overview
Summary
AIA Group demonstrates strong profitability and cash flow management, with a stable balance sheet supporting its financial health. However, the inconsistency in revenue growth and declining equity ratio highlight areas for potential 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.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.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.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.21B | 20.36B | 19.76B | 57.14B | 46.36B | 50.85B |
| Gross Profit | 25.49B | 28.02B | 19.76B | -18.87B | 47.99B | 50.85B |
| EBITDA | 7.16B | 8.92B | 5.46B | 4.56B | 9.22B | 7.58B |
| Net Income | 6.05B | 6.84B | 3.76B | 3.33B | 7.43B | 5.78B |
Balance Sheet | ||||||
| Total Assets | 328.43B | 305.45B | 286.32B | 270.47B | 339.87B | 326.12B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 106.39B | 100.14B | 8.02B | 3.91B | 4.40B |
| Total Debt | 14.38B | 13.67B | 15.63B | 13.35B | 11.65B | 10.72B |
| Total Liabilities | 287.56B | 264.64B | 244.72B | 225.32B | 278.94B | 262.45B |
| Stockholders Equity | 40.51B | 40.49B | 41.11B | 44.67B | 60.47B | 63.20B |
Cash Flow | ||||||
| Free Cash Flow | 4.95B | 3.03B | 10.59B | 9.48B | 3.27B | 2.10B |
| Operating Cash Flow | 5.05B | 3.26B | 10.92B | 9.87B | 3.91B | 2.36B |
| Investing Cash Flow | -854.74M | -945.00M | -2.14B | -817.00M | -2.78B | -1.22B |
| Financing Cash Flow | -3.08B | -5.69B | -6.07B | -4.79B | -1.66B | 392.00M |
AIA Group Technical Analysis
Positive
42.94
Price Trends
41.51
Positive
39.50
Positive
36.26
Positive
Market Momentum
0.66
Negative
55.80
Neutral
64.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAGIY, the sentiment is Positive. The current price of 42.94 is above the 20-day moving average (MA) of 42.42, above the 50-day MA of 41.51, and above the 200-day MA of 36.26, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 64.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAGIY.
AIA Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $41.33B | 16.18 | 8.36% | 4.73% | -19.35% | -35.23% | |
73 Outperform | $113.24B | 19.28 | 15.16% | 2.11% | 6.02% | 30.95% | |
73 Outperform | $39.55B | 12.17 | 20.19% | 1.49% | 42.45% | 304.26% | |
69 Neutral | $52.32B | 14.95 | 12.84% | 2.78% | 0.82% | 7.18% | |
68 Neutral | $57.25B | 14.24 | 15.58% | 2.10% | 2.31% | 15.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $13.44B | 15.64 | 8.35% | 2.22% | 1.80% | -44.44% |
* Financial Sector Average
AAGIY
AIA Group
42.94
16.54
62.63%
AFL
AFLAC
108.88
7.46
7.36%
MET
Metlife
78.32
-3.15
-3.87%
PRU
Prudential Financial
117.74
5.94
5.31%
PUK
Prudential
31.84
17.40
120.48%
UNM
Unum Group
80.06
8.72
12.22%
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.