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<Results>AIA: US$2B Addition to Existing Shr Buyback Program, Bringing Total to US$12B
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AIA (01299.HK) announced its enhanced capital management policy and enlarged share buyback programme. This involved a US$2 billion addition to its existing share buyback programme, which will increase the total to US$12 billion. The additional US$2 billion share buyback is targeted to commence as soon as practicable and is expected to be completed in around 12 months. AIA set a payout ratio target of 75% of annual net free surplus generation (net FSG) returned to shareholders each year through dividends and share buybacks, starting from its 2024 annual results. The group will also regularly review its capital position and returning capital that is in excess of its needs. As a reference, the net FSG in 2023 was US$3.9 billion. For illustrative purposes, the first component of the enhanced capital management policy would have generated capital returns to shareholders of US$2.9 billion, representing 75% of net FSG, and comprising US$2.3 billion from dividends for the financial year 2023, together with US$0.6 billion through share buybacks. While the Group Local Capital Summation Method (LCSM) surplus is AIA's principal regulatory solvency measure, the group believed that free surplus provided a more representative view of the capital position for shareholders. The group is providing broad guidance in relation to the level of free surplus that it will target as a Group going forward. AIA will do this based on the shareholders’ view of total capital resources, which comprises free surplus, eligible Tier 2 debt capital and required capital as used in its embedded value calculations. Based on AIA's assessment of the capital needs of its business, the group target for the shareholders’ view of total capital resources to comfortably exceed 200% of required capital. AAStocks Financial News |
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