Hong Kong Stocks: AIA Group Soars on Strong Q1 Results, Buyback Plan Unveiled

In major news on Hong Kong stocks, AIA Group (HK:1299) shares soared by 6.4% today after the company announced strong results for its first quarter of 2024 and an additional buyback plan of $2 billion. AIA reported a 31% increase in the value of new business (VONB) at constant exchange rates to a record quarterly high of $1.33 billion. The company also achieved double-digit growth in VONB across all its reportable segments.

AIA is a leading Asian insurance company, providing a range of insurance products and financial services, including life, medical, accident protection, and more tailored for individuals.

More from AIA’s Q1 Update

Regionally, AIA recorded a 38% increase in its VONB in China, while its Hong Kong operations saw 43% growth during the quarter. This growth was supported by heightened demand from Mainland China visitors and increased activity among agents.

The company’s ANP (annualised new premiums) increased by 26% on a constant currency basis to $2.45 billion as compared to the same quarter last year. VONB margin increased to 54.2% in Q1 2024 from 52.3% in the prior-year quarter.

AIA Boosts Shareholder Returns

AIA unveiled an “enhanced capital management policy,” aiming to enhance its annual distributions to shareholders via dividends and buybacks. As per this policy, the company will distribute 75% of its annual net free surplus generation through dividends and buybacks, beginning with the FY24 results. Also, it announced an additional $2 billion share buyback, bringing the total program to $12 billion.

Is AIA a Good Stock to Buy?

As per the consensus rating on TipRanks, 1299 stock has received a Strong Buy rating, backed by Buy recommendations from all 10 analysts covering the stock. The AIA share price forecast stands at HK$95.19, signifying a huge potential upside of 76.3% in the share price.

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