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AIA Group

SEHK:1299
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1299
SEHK
HK$995B
Market Cap
  1. Home
  2. HK
  3. Insurance
Company description

AIA Group Limited provides insurance products and services. The last earnings update was 102 days ago. More info.


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1299 Share Price and Events
7 Day Returns
10.2%
SEHK:1299
8.2%
HK Insurance
3.9%
HK Market
1 Year Returns
23.3%
SEHK:1299
8.9%
HK Insurance
-9.3%
HK Market
1299 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AIA Group (1299) 10.2% 9.8% 9.5% 23.3% 86.2% 112.7%
HK Insurance 8.2% 9.5% 4.5% 8.9% 74.8% 77%
HK Market 3.9% 3.5% -3.6% -9.3% 24.9% 7.4%
1 Year Return vs Industry and Market
  • 1299 outperformed the Insurance industry which returned 8.9% over the past year.
  • 1299 outperformed the Market in Hong Kong which returned -9.3% over the past year.
Price Volatility
1299
Industry
5yr Volatility vs Market

1299 Value

 Is AIA Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AIA Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AIA Group.

SEHK:1299 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 17 analysts.
= Stable Book Value * Return on Equity
= $4.05 * 16.3%
$0.66
Book Value of Equity per Share Weighted future Book Value estimates from 15 analysts. $4.05
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1299
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.691 (1 + (1- 25%) (5.24%))
0.811
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.811 * 6.65%)
7.4%

Discounted Cash Flow Calculation for SEHK:1299 using Excess Returns Model Model

The calculations below outline how an intrinsic value for AIA Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

SEHK:1299 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.3% – 7.4%) * $4.05)
$0.36
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.36 / (7.4% - 2%)
$6.68
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $4.05 + $6.68
$10.73
SEHK:1299 Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:1299)
7.81
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $10.73 x 7.81
HK$83.78
Value per share (HKD) From above. HK$83.78
Current discount Discount to share price of HK$82.85
= -1 x (HK$82.85 - HK$83.78) / HK$83.78
1.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AIA Group is available for.
Intrinsic value
1%
Share price is HK$82.85 vs Future cash flow value of HK$83.78
Current Discount Checks
For AIA Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AIA Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • AIA Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AIA Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AIA Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1299 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.24
SEHK:1299 Share Price ** SEHK (2019-06-24) in HKD HK$82.85
SEHK:1299 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $10.61
Hong Kong Insurance Industry PE Ratio Median Figure of 8 Publicly-Listed Insurance Companies 12.95x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AIA Group.

SEHK:1299 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1299 Share Price ÷ EPS (both in USD)

= 10.61 ÷ 0.24

43.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AIA Group is overvalued based on earnings compared to the HK Insurance industry average.
  • AIA Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does AIA Group's expected growth come at a high price?
Raw Data
SEHK:1299 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
21.8%per year
Hong Kong Insurance Industry PEG Ratio Median Figure of 7 Publicly-Listed Insurance Companies 0.81x
Hong Kong Market PEG Ratio Median Figure of 469 Publicly-Listed Companies 0.78x

*Line of best fit is calculated by linear regression .

SEHK:1299 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.67x ÷ 21.8%

2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AIA Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AIA Group's assets?
Raw Data
SEHK:1299 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.24
SEHK:1299 Share Price * SEHK (2019-06-24) in HKD HK$82.85
SEHK:1299 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $10.61
Hong Kong Insurance Industry PB Ratio Median Figure of 11 Publicly-Listed Insurance Companies 1.13x
Hong Kong Market PB Ratio Median Figure of 2,172 Publicly-Listed Companies 0.94x
SEHK:1299 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1299 Share Price ÷ Book Value per Share (both in USD)

= 10.61 ÷ 3.24

3.27x

* Primary Listing of AIA Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AIA Group is overvalued based on assets compared to the HK Insurance industry average.
X
Value checks
We assess AIA Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. AIA Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1299 Future Performance

 How is AIA Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AIA Group expected to grow at an attractive rate?
  • AIA Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • AIA Group's earnings growth is expected to exceed the Hong Kong market average.
  • AIA Group's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1299 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1299 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 21.8%
SEHK:1299 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 16.6%
Hong Kong Insurance Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
Hong Kong Insurance Industry Revenue Growth Rate Market Cap Weighted Average 11.6%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.1%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1299 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1299 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 49,243 8,271 8
2020-12-31 42,517 7,383 10
2019-12-31 36,560 6,480 10
SEHK:1299 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 33,025 1,865 2,920
2017-11-30 38,761 1,451 6,120
2017-08-31 36,151 1,231 5,572
2017-05-31 33,540 1,011 5,024
2017-02-28 30,669 1,188 4,594
2016-11-30 27,797 1,364 4,164
2016-08-31 24,643 1,501 3,395
2016-05-31 21,489 1,638 2,626
2016-02-29 21,988 1,438 2,696

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AIA Group's earnings are expected to grow significantly at over 20% yearly.
  • AIA Group's revenue is expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1299 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from AIA Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1299 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.70 0.77 0.59 14.00
2020-12-31 0.63 0.84 0.53 20.00
2019-12-31 0.54 0.69 0.48 19.00
SEHK:1299 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.24
2017-11-30 0.51
2017-08-31 0.46
2017-05-31 0.42
2017-02-28 0.38
2016-11-30 0.35
2016-08-31 0.28
2016-05-31 0.22
2016-02-29 0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AIA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AIA Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AIA Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1299 Past Performance

  How has AIA Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AIA Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AIA Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • AIA Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • AIA Group's 1-year earnings growth is negative, it can't be compared to the HK Insurance industry average.
Earnings and Revenue History
AIA Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AIA Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1299 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 33,024.93 2,919.69 2,184.00
2017-11-30 38,761.00 6,120.00 1,969.00
2017-08-31 36,150.50 5,572.00 1,913.00
2017-05-31 33,540.00 5,024.00 1,857.00
2017-02-28 30,668.50 4,594.00 1,804.50
2016-11-30 27,797.00 4,164.00 1,752.00
2016-08-31 24,643.00 3,395.00 1,715.00
2016-05-31 21,489.00 2,626.00 1,678.00
2016-02-29 21,987.50 2,695.50 1,658.00
2015-11-30 22,486.00 2,765.00 1,638.00
2015-08-31 24,940.50 3,436.50 1,650.00
2015-05-31 27,395.00 4,108.00 1,662.00
2015-02-28 26,282.00 3,779.00 1,649.00
2014-11-30 25,169.00 3,450.00 1,636.00
2014-08-31 23,213.00 2,942.50 1,600.00
2014-05-31 21,257.00 2,435.00 1,564.00
2014-02-28 21,444.00 2,629.50 1,550.50
2013-11-30 21,631.00 2,824.00 1,537.00
2013-08-31 22,634.00 3,167.00 1,490.50
2013-05-31 23,637.00 3,510.00 1,444.00
2013-02-28 22,155.50 3,264.50 1,392.00
2012-11-30 20,674.00 3,019.00 1,340.00
2012-08-31 17,408.50 2,374.50 1,305.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AIA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AIA Group used its assets less efficiently than the HK Insurance industry average last year based on Return on Assets.
  • AIA Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AIA Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AIA Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1299 Health

 How is AIA Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AIA Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AIA Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AIA Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of AIA Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 11.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AIA Group Company Filings, last reported 5 months ago.

SEHK:1299 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 39,406.00 6,679.00 67,885.00
2017-11-30 42,372.00 5,896.00 64,628.00
2017-08-31 42,372.00 5,896.00 64,628.00
2017-05-31 38,675.00 6,225.00 60,451.00
2017-02-28 38,675.00 6,225.00 60,451.00
2016-11-30 35,310.00 5,479.00 1,409.00
2016-08-31 35,310.00 5,479.00 1,409.00
2016-05-31 35,881.00 6,173.00 54,193.00
2016-02-29 35,881.00 6,173.00 54,193.00
2015-11-30 31,422.00 6,527.00 1,699.00
2015-08-31 31,422.00 6,527.00 1,699.00
2015-05-31 31,898.00 7,051.00 1,314.00
2015-02-28 31,898.00 7,051.00 1,314.00
2014-11-30 30,955.00 6,688.00 1,469.00
2014-08-31 30,955.00 6,688.00 1,469.00
2014-05-31 28,179.00 6,029.00 1,697.00
2014-02-28 28,179.00 6,029.00 1,697.00
2013-11-30 24,827.00 4,015.00 1,930.00
2013-08-31 24,827.00 4,015.00 1,930.00
2013-05-31 27,321.00 4,533.00 1,727.00
2013-02-28 27,321.00 4,533.00 1,727.00
2012-11-30 26,828.00 2,558.00 2,280.00
2012-08-31 26,828.00 2,558.00 2,280.00
  • AIA Group's level of debt (16.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (18.2% vs 16.9% today).
  • Debt is well covered by operating cash flow (27.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18x coverage).
X
Financial health checks
We assess AIA Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AIA Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1299 Dividends

 What is AIA Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.37%
Current annual income from AIA Group dividends. Estimated to be 1.87% next year.
If you bought HK$2,000 of AIA Group shares you are expected to receive HK$27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AIA Group's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • AIA Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1299 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Hong Kong Insurance Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1299 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.23 14.00
2020-12-31 0.20 19.00
2019-12-31 0.17 19.00
SEHK:1299 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-14 0.145 1.464
2018-08-24 0.132 1.555
2018-02-27 0.127 1.460
2017-03-23 0.109 1.450
2017-02-23 0.110 1.733
2016-07-28 0.094 1.512
2016-02-25 0.090 1.563
2015-02-26 0.064 1.072
2014-03-24 0.055 1.029
2014-02-20 0.055 1.161
2013-02-27 0.048 1.036
2012-02-24 0.057 1.552
2011-07-29 0.028 0.892

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, AIA Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but AIA Group only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of AIA Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).
X
Income/ dividend checks
We assess AIA Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AIA Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AIA Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1299 Management

 What is the CEO of AIA Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keng Hooi Ng
COMPENSATION $9,536,956
AGE 63
TENURE AS CEO 2 years
CEO Bio

Mr. Keng Hooi Ng has been President, Group Chief Executive and Executive Director at AIA Group Limited since June 1, 2017. Mr. Ng served as Executive Vice President and Regional Chief Executive Officer at AIA Group ltd. until March 13, 2017. Mr. Ng joined the AIA Group in October 2010 and is responsible for overseeing various aspects of business from a regional perspective, with a focus on achieving further profitable growth through agency, bancassurance and direct distribution. He served as Group Chief Executive Officer of Great Eastern Life and OAC since December 1, 2008 until 2010. Mr. Ng has over 37 years of experience in Asian life insurance having spent his entire career in the sector. Prior to his current role, he was Group Chief Executive and President Designate from March 2017 and was a Regional Chief Executive for the Group since his initial appointment in 2010. During that time, he was responsible for a number of the Company’s businesses, including most recently those operating in Mainland China, Thailand, Indonesia, Singapore, Brunei and Taiwan as well as for the Group’s Agency Distribution channel. He is a director of various companies within the Group including acting as Chairman and Chief Executive Officer for both AIA Co. and AIA International. Mr. Ng worked for about 19 years with the Prudential plc since 1989 until November 2008 where he last held the position of Regional Managing Director, Insurance, for Malaysia, Singapore, Indonesia and Philippines from 2005 to 2008. He served as the Group Chief Executive Officer of Great Eastern Holdings Ltd. from December 1, 2008 to 2010. He served as General Manager of Prudential Assurance Malaysia Berhad since 1995 and it’s Chief Executive Officer since 1998. Mr. Ng also spent six years with AIA Malaysia in actuarial, system and operations functions. He serves as the Chairman of Lion Global Investors Limited. He served as the Chairman of Prudential Assurance Malaysia Berhad. He served as Chairman of Prudential Assurance Co Singapore. He served as the President Commissioner of PT Prudential Life Assurance, Indonesia. Mr. Ng began his career in life insurance at AIA Malaysia in 1980. He has been a board member of the Financial Services Professional Board in Kuala Lumpur since 24 September 2014. He serves as a Director of Great Eastern Life, OAC, GEC, GELM and OACM. He served as an Executive Director of Great Eastern Holdings Ltd. from December 1, 2008 to 2010. Mr. Ng served as a Director of Prudential Corporation Asia. Mr. Ng received a Bachelor of Science in Mechanical Engineering (Summa Cum Laude) from Lafayette College, Easton, Pennsylvania, USA in 1979 and is a Fellow of the Society of Actuaries, USA since 1985.

CEO Compensation
  • Keng Hooi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Keng Hooi's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the AIA Group management team in years:

2
Average Tenure
53
Average Age
  • The tenure for the AIA Group management team is about average.
Management Team

Keng Hooi Ng

TITLE
Group Chief Executive
COMPENSATION
$10M
AGE
63
TENURE
2 yrs

Garth Brian Jones

TITLE
Group Chief Financial Officer
AGE
55
TENURE
8.2 yrs

Biswa Misra

TITLE
Group Chief Technology & Operations Officer
AGE
40
TENURE
2 yrs

Mark Konyn

TITLE
Group Chief Investment Officer
AGE
56
TENURE
3.8 yrs

Lance Montague Burbidge

TITLE
Head of Investor Relations

Mitchell New

TITLE
Group General Counsel
AGE
53

Mark Vincent Thomas Saunders

TITLE
Group Chief Strategy & Corporate Development Officer
AGE
54
TENURE
2 yrs

Stuart Anthony Spencer

TITLE
Group Chief Marketing Officer
AGE
52
TENURE
2 yrs

Cara Ang

TITLE
Group Chief Human Resources Officer
AGE
50
TENURE
2 yrs

Jon Nielsen

TITLE
Group Chief Risk Officer
AGE
46
TENURE
9.4 yrs
Board of Directors Tenure

Average tenure and age of the AIA Group board of directors in years:

6
Average Tenure
65.5
Average Age
  • The tenure for the AIA Group board of directors is about average.
Board of Directors

Edmund Tse

TITLE
Independent Non-Executive Chairman
COMPENSATION
$752K
AGE
80
TENURE
8.4 yrs

Keng Hooi Ng

TITLE
Group Chief Executive
COMPENSATION
$10M
AGE
63
TENURE
2 yrs

Chung-Kong Chow

TITLE
Independent Non-Executive Director
COMPENSATION
$239K
AGE
67
TENURE
8.8 yrs

Jack So

TITLE
Independent Non-Executive Director
COMPENSATION
$282K
AGE
72
TENURE
8.8 yrs

John Harrison

TITLE
Independent Non-Executive Director
COMPENSATION
$282K
AGE
62
TENURE
7.9 yrs

George Yeo

TITLE
Independent Non-Executive Director
COMPENSATION
$266K
AGE
64
TENURE
6.6 yrs

Narongchai Akrasanee

TITLE
Independent Non-Executive Director
COMPENSATION
$287K
AGE
73
TENURE
3.4 yrs

Mohamed Azman Bin Yahya

TITLE
Independent Non-Executive Director
COMPENSATION
$222K
AGE
54
TENURE
5.3 yrs

Lawrence Lau

TITLE
Independent Non-Executive Director
COMPENSATION
$222K
AGE
74
TENURE
4.8 yrs

Swee-Lian Teo

TITLE
Independent Non-Executive Director
COMPENSATION
$222K
AGE
58
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by AIA Group individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
20. Jun 19 Buy Keng Hooi Ng Individual 17. Jun 19 17. Jun 19 474 HK$75.81 HK$35,934
04. Jun 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 30. May 19 30. May 19 1,718,676 HK$75.26 HK$129,353,405
31. May 19 Buy John Harrison Individual 28. May 19 28. May 19 5,000 HK$77.50 HK$387,500
20. May 19 Buy Keng Hooi Ng Individual 15. May 19 15. May 19 126 HK$77.24 HK$9,732
08. May 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 03. May 19 03. May 19 -877,347 HK$83.15 HK$-72,950,439
08. May 19 Buy Capital Group International Inc. Company 06. May 19 06. May 19 9,456,304 HK$80.26 HK$758,936,472
18. Apr 19 Buy Keng Hooi Ng Individual 15. Apr 19 15. Apr 19 122 HK$80.15 HK$9,778
19. Mar 19 Buy Keng Hooi Ng Individual 15. Feb 19 15. Feb 19 125 HK$78.11 HK$9,764
07. Mar 19 Buy Capital Research and Management Company Company 04. Mar 19 04. Mar 19 2,801,372 HK$78.65 HK$220,326,783
22. Feb 19 Sell Capital Group International Inc. Company 19. Feb 19 19. Feb 19 -3,640,776 HK$297.82 HK$-1,084,283,693
21. Feb 19 Buy Capital Research and Management Company Company 18. Feb 19 18. Feb 19 1,065,081 HK$74.10 HK$78,922,498
20. Feb 19 Buy Keng Hooi Ng Individual 15. Feb 19 15. Feb 19 131 HK$74.25 HK$9,726
18. Jan 19 Buy Keng Hooi Ng Individual 15. Jan 19 15. Jan 19 144 HK$67.88 HK$9,775
20. Dec 18 Buy Keng Hooi Ng Individual 17. Dec 18 17. Dec 18 152 HK$64.10 HK$9,743
20. Nov 18 Buy Keng Hooi Ng Individual 15. Nov 18 15. Nov 18 153 HK$63.61 HK$9,732
19. Oct 18 Buy Keng Hooi Ng Individual 15. Oct 18 15. Oct 18 273 HK$62.67 HK$17,110
20. Sep 18 Buy Keng Hooi Ng Individual 17. Sep 18 17. Sep 18 150 HK$64.99 HK$9,749
20. Aug 18 Buy Keng Hooi Ng Individual 15. Aug 18 15. Aug 18 143 HK$68.32 HK$9,770
19. Jul 18 Buy Keng Hooi Ng Individual 16. Jul 18 16. Jul 18 142 HK$68.61 HK$9,743
X
Management checks
We assess AIA Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AIA Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1299 News

Simply Wall St News

Is Now The Time To Look At Buying AIA Group Limited (HKG:1299)?

According to my valuation model, AIA Group seems to be fairly priced at around 12% below my intrinsic value, which means if you buy AIA Group today, you’d be paying a fair price for it. … Will you have enough confidence to invest in the company should the price drop below its fair value? … However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Simply Wall St -

These Fundamentals Make AIA Group Limited (HKG:1299) Truly Worth Looking At

In the case of AIA Group Limited (HKG:1299), there's is a company with robust financial health as well as a buoyant future outlook. … Excellent balance sheet with reasonable growth potential 1299's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … This implies that 1299 manages its cash and cost levels well, which is a crucial insight into the health of the company.

Simply Wall St -

Could AIA Group Limited's (HKG:1299) Investor Composition Influence The Stock Price?

We also tend to see lower insider ownership in companies that were previously publicly owned. … View our latest analysis for AIA Group SEHK:1299 Ownership Summary, May 15th 2019 What Does The Institutional Ownership Tell Us About AIA Group? … As you can see, institutional investors own 53% of AIA Group.

Simply Wall St -

Why AIA Group Limited's (HKG:1299) High P/E Ratio Isn't Necessarily A Bad Thing

We'll apply a basic P/E ratio analysis to AIA Group Limited's (HKG:1299), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 42.15 = $10.24 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.24

Simply Wall St -

Should You Take Comfort From Insider Transactions At AIA Group Limited (HKG:1299)?

So shareholders might well want to know whether insiders have been buying or selling shares in AIA Group Limited (HKG:1299). … The good news for AIA Group share holders is that insiders were buying at near the current price … In the last twelve months AIA Group insiders were buying shares, but not selling

Simply Wall St -

With A Return On Equity Of 7.6%, Has AIA Group Limited's (HKG:1299) Management Done Well?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows AIA Group has a return on equity of 7.6% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Did Business Growth Power AIA Group's (HKG:1299) Share Price Gain of 120%?

It's also good to see the share price up 25% over the last quarter. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … This EPS growth is slower than the share price growth of 17% per year, over the same period.

Simply Wall St -

Is AIA Group Limited (HKG:1299) A Smart Choice For Dividend Investors?

Historically, AIA Group Limited (HKG:1299) has been paying a dividend to shareholders. … Let's dig deeper into whether AIA Group should have a place in your portfolio. … See our latest analysis for AIA Group

Simply Wall St -

Intrinsic Calculation For AIA Group Limited (HKG:1299) Shows Investors Are Overpaying

Pricing 1299, a financial stock, can be difficult since these insurance businesses have cash flows that are affected by regulations that are not imposed upon other sectors. … For instance, insurance firms that invest excess premiums are required to maintain a certain level of reserves to reduce the risk to shareholders.

Simply Wall St -

What Kind Of Shareholders Own AIA Group Limited (HKG:1299)?

A look at the shareholders of AIA Group Limited (HKG:1299) can tell us which group is most powerful. … Taking a look at the our data on the ownership groups (below), it's seems that. … We can zoom in on the different ownership groups, to learn more about 1299

Simply Wall St -

1299 Company Info

Description

AIA Group Limited provides insurance products and services. The company offers life, medical, accident protection, critical illness protection, and disability income protection insurance products, as well as savings plans for individuals; and employee benefit, Asia benefits network, credit insurance, and retirement solutions for businesses. It also distributes investment and other financial services products. The company distributes its products and services through agents; distribution partners; other intermediated channels, including independent financial advisers, brokers, private banks, and specialist advisers; and direct channel. It operates in Hong Kong, Macau, Thailand, Singapore, Brunei, Malaysia, China, Korea, Australia, Indonesia, New Zealand, the Philippines, Sri Lanka, Taiwan, Vietnam, India, Myanmar, and Cambodia. AIA Group Limited was founded in 1919 and is headquartered in Central, Hong Kong.

Details
Name: AIA Group Limited
1299
Exchange: SEHK
Founded: 1919
HK$995,245,111,146
12,034,402,795
Website: http://www.aia.com
Address: AIA Group Limited
AIA Central,
35th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1299 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 29. Oct 2010
OTCPK AAIG.F Ordinary Shares Pink Sheets LLC US USD 29. Oct 2010
DB 7A2 Ordinary Shares Deutsche Boerse AG DE EUR 29. Oct 2010
SHSC 1299 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 29. Oct 2010
SZSC 1299 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 29. Oct 2010
BMV 1299 N Ordinary Shares Bolsa Mexicana de Valores MX MXN 29. Oct 2010
OTCPK AAGI.Y SPONSORED ADR Pink Sheets LLC US USD 16. Jun 2011
Number of employees
Current staff
Staff numbers
22,000
AIA Group employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 13:00
End of day share price update: 2019/06/24 00:00
Last estimates confirmation: 2019/06/20
Last earnings filing: 2019/03/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.