AIA Group
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
1 Year Returns
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.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for AIA Group.
| 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.
| 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.
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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 .
| 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?
| 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 |
| 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.
Value checks
We assess AIA Group's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check) 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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| 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 |
| 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.
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.
| 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 |
| 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.
Future performance checks
We assess AIA Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from AIA Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess AIA Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from AIA Group Company Filings, last reported 5 months ago.
| 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).
Financial health checks
We assess AIA Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) AIA Group has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
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
- 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.
| 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.
| 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 |
| 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.
Income/ dividend checks
We assess AIA Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The tenure for the AIA Group management team is about average.
Management Team
Keng Hooi Ng
Group Chief Executive
$10M
63
2 yrs
Garth Brian Jones
Group Chief Financial Officer
55
8.2 yrs
Biswa Misra
Group Chief Technology & Operations Officer
40
2 yrs
Mark Konyn
Group Chief Investment Officer
56
3.8 yrs
Lance Montague Burbidge
Head of Investor Relations
Mitchell New
Group General Counsel
53
Mark Vincent Thomas Saunders
Group Chief Strategy & Corporate Development Officer
54
2 yrs
Stuart Anthony Spencer
Group Chief Marketing Officer
52
2 yrs
Cara Ang
Group Chief Human Resources Officer
50
2 yrs
Jon Nielsen
Group Chief Risk Officer
46
9.4 yrs
Board of Directors Tenure
Average tenure and age of the AIA Group board of directors in years:
- The tenure for the AIA Group board of directors is about average.
Board of Directors
Edmund Tse
Independent Non-Executive Chairman
$752K
80
8.4 yrs
Keng Hooi Ng
Group Chief Executive
$10M
63
2 yrs
Chung-Kong Chow
Independent Non-Executive Director
$239K
67
8.8 yrs
Jack So
Independent Non-Executive Director
$282K
72
8.8 yrs
John Harrison
Independent Non-Executive Director
$282K
62
7.9 yrs
George Yeo
Independent Non-Executive Director
$266K
64
6.6 yrs
Narongchai Akrasanee
Independent Non-Executive Director
$287K
73
3.4 yrs
Mohamed Azman Bin Yahya
Independent Non-Executive Director
$222K
54
5.3 yrs
Lawrence Lau
Independent Non-Executive Director
$222K
74
4.8 yrs
Swee-Lian Teo
Independent Non-Executive Director
$222K
58
3.8 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by AIA Group individual insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | 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 | ||
Management checks
We assess AIA Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleThese 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 - – Full articleCould 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 - – Full articleWhy 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 - – Full articleShould 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 - – Full articleWith 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 - – Full articleDid 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 - – Full articleIs 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 - – Full articleIntrinsic 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 - – Full articleWhat 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 - – Full article1299 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
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.
