Aia Group Limited · HKEX:1299

Aia — FY2015 Earnings Presentation

82 slides from Aia's earnings presentation, Feb 25, 2016

1. Slide 1: 2015 Annual Results Presentation

   2015 ANNUAL RESULTS PRESENTATION 25 February 2016

2. Slide 2: Disclaimer

   Disclaimer This document (“document”) has been prepared by AIA Group Limited (the “Company”) and its advisers solely for use at the presentation (the “Presentation”) held in connection with the announcement of the Company’s financial results. Document in this disclaimer shall be construed to include

3. Slide 3: Mark Tucker

   Value of New Business $2,198m +26% CER Operating Profit After Tax $3,209m +16% CER Final Dividend per Share 51.00 HK cents +50% Mark Tucker Group Chief Executive

4. Slide 4: Excellent Financial Results

   Excellent Financial Results  VONB up 26% to $2,198m  OPAT up 16% to $3,209m  Underlying free surplus generation of $3.7b  EV Equity of $39.8b  AIA Co. solvency ratio of 428%  Final dividend per share increase of 50% 4

5. Slide 5: Agenda

   Agenda Presenter Position Topic Mark Tucker Group Chief Executive 2015 Group Review Garth Jones Group Chief Financial Officer 2015 Financial Results Gordon Watson Bill Lisle Regional Chief Executives 2015 Market Reviews Ng Keng Hooi Mark Tucker Group Chief Executive Closing Remarks All Presenters Ex

6. Slide 6: Aligned Growth Platforms and Priorities

   Aligned Growth Platforms and Priorities Growth Growth Growth Drivers Platforms Priorities Large Population Growth  Sustain competitive advantages in Premier Agency Premier 4.1 billion  Recruit, develop and promote next generation of agents Agency  Enhance productivity and service through technolo

7. Slide 7: Premier Agency Delivery

   Premier Agency Delivery Premier Agency VONB ($m) Premier Agency Delivery 1,691 +25%  VONB up 25% on CER 1,357  Quality recruitment focus  Expanded training and development  Benefited from iPoS technology  Active new agents up 70% since IPO 2014 2015 Contribution to Growth by Channel Global MDRT

8. Slide 8: Premier Agency Delivery (Cont.)

   Premier Agency Delivery (Cont.) AIA Leadership Centre  Group-wide leadership centre in Thailand providing best-in-class training and development to agents and employees  Dedicated, full-time, in-house staff represents AIA’s capacity to invest at scale in supporting our distribution  Strategic par

9. Slide 9: Profitable Partnership Expansion

   Profitable Partnership Expansion Partnership Distribution VONB ($m) Profitable Partnership Expansion 658  VONB up 29% on CER +29%  Diversified growth across the Group 510  Accelerating bancassurance growth through local and regional partners  Citi contribution growing strongly  Strong IFA growt

10. Slide 10: Balanced Growth Platform

    Balanced Growth Platform Right Balance Across Distribution, Geography and Product Distribution Mix Geographical Mix Product Mix % of 2015 ANP % of 2015 ANP % of 2015 ANP Korea 6% Malaysia Others 7% 12% China Traditional Partnerships 11% Hong Kong Protection 36% 32% Unit-linked 33% 19% Singapore 12%

11. Slide 11: AIA Vitality – Increasing Customer Engagement

    AIA Vitality – Increasing Customer Engagement The Oxford Health Alliance’s 3-4-50 Model(1) Significant Growth Opportunity 3  Vitality – Leading wellness platform globally with Behaviours Smoking more than 3 million members No exercise Poor diet  AIA Vitality – Fully regional, full-scale exclusive(

12. Slide 12: High-quality Earnings Mix

    High-quality Earnings Mix 2015 Sources of IFRS Operating Profit(1) High-quality Business  Right earnings balance Return on Net Worth 14%  Majority insurance and fee-based profits  Profitable new business mix  Protection cover across our product range Participating and Spread 22%  Underpinned by

13. Slide 13: Disciplined Financial Management

    Disciplined Financial Management New Business Strain VONB ($m) as % of VONB 144% 2,198 (76)pps 3.3x 68% 667 2010 2015 2010 2015 OPAT ($m) Final Dividend Per Share (HK cents) 51.00 3,209 1.9x 2.3x 1,699 22.00 2010 2015 2011 2015 13

14. Slide 14: Sustained Delivery Through Market Cycles

    Sustained Delivery Through Market Cycles VONB ($m) OPAT ($m) 2,198 3,209 3.3x 1.9x 2,910 1,845 2,506 1,490 2,159 1,188 1,922 932 1,699 667 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Final Dividend Per Share (HK cents) Interest Rate and Equity Market Volatility 51.00 4.0% 650 2.3x 3.

15. Slide 15: Garth Jones

    Garth Jones Group Chief Financial Officer

16. Slide 16: Excellent Financial Results – Across All Key Metrics

    Excellent Financial Results – Across All Key Metrics ($m) 2015 2014 CER AER VONB 2,198 1,845 26% 19% VONB Margin 54.0% 49.1% 4.6 pps 4.9 pps Growth ANP 3,991 3,700 14% 8% EV Operating Profit 5,068 4,535 17% 12% IFRS Operating Profit After Tax 3,209 2,910 16% 10% Earnings TWPI 19,876 19,211 10% 3% Op

17. Slide 17: Growth, Earnings, Capital and Dividends

    Growth Earnings Capital and Dividends 17

18. Slide 18: Sustained VONB Growth

    Sustained VONB Growth ANP ($m) 3,991 +14% VONB ($m) 3,490 2,198 +26% 1,750 2014 2015 VONB Margin 54.0% 49.4% +4.6pps 2014 2015 2014 2015 Note: Comparatives are shown on a constant exchange rate basis 18

19. Slide 19: Sustained Growth in Profitable New Business

    Sustained Growth in Profitable New Business VONB ($m) 2,198 1,845 1,490 1,188 932 667 2015 vs 2010 3.3x 19

20. Slide 20: Strong and Broad-based Product Profitability

    Strong and Broad-based Product Profitability PVNBP Margin by Product 14% 13% 9% 8% 8% 7% 7% 6% 6% 6% Overall Traditional Participating Unit-linked Others Protection 2014 2015 20

21. Slide 21: VONB Margin Improvement

    VONB Margin Improvement 4.9 pps Increase in VONB Margin 21

22. Slide 22: Diversified Growth Portfolio

    Diversified Growth Portfolio VONB ($m) 2015 VONB by Market Segment 820 +32% Hong Kong 619 Malaysia 395 7% +15% Thailand 344 Other Markets 366 +45% China 11% Hong Kong 253 34% 341 +24% Singapore 276 Singapore 14% Other 250 +32% Markets 190 172 +27% Malaysia 135 China 15% Thailand 17% 46 (39)% Korea 7

23. Slide 23: EV Equity of $39.8b – EV Operating Profit up 17%

    EV Equity of $39.8b – EV Operating Profit up 17% 2015 EV Equity Movement ($m) EV Operating Profit $5.1b up 17%(1) 248 ( 76 ) ( 1,659 ) 2,198 ( 1,819 ) 2,698 ( 814 ) 44,110 39,818 39,042 Group Expected VONB Operating Finance Group Investment Exchange Dividend Group EV Equity Return on EV Variances an

24. Slide 24: Operating Performance Driving Positive Variances

    Operating Performance Driving Positive Variances Expense Ratio 8.8% 8.7% 8.7% Persistency Rate 8.6% 8.5% 8.3% 95% 94% 94.2% 2010 2011 2012 2013 2014 2015 93% Operating Variances ($m) 92% 248 91% 144 124 111 108 90% 2011 2012 2013 2014 2015 24

25. Slide 25: Interest Rates and EV Sensitivity

    Interest Rates and EV Sensitivity AIA Long-term Assumptions vs Market Rates Sensitivity of EV Weighted Average by Geography (1) As at 30 Nov 2015 4.5% Interest rates +50 bps 0.3% 4.0% 3.5% Interest rates -50 bps (0.3)% 3.0% Equity prices +10% 1.9% 2.5% 2.0% 2010 Nov-10 2011 Nov-11 2012 Nov-12 2013 N

26. Slide 26: Currency Sensitivity

    Currency Sensitivity EV ($m) VONB ($m) (2.6)% 38,198 2.6% (3.4)% 2,198 3.4% 5% fall in 5% rise in 5% fall in 5% rise in local market local market local market local market currencies vs currencies vs currencies vs currencies vs US dollar US dollar US dollar US dollar 988 75 2015 (75) 2015 EV VONB (9

27. Slide 27: Group Corporate Centre and AIA HK Portfolio

    Group Corporate Centre and AIA HK Portfolio Group Corporate Centre AIA HK Assets and Liabilities by Currency by Currency HKD & Total $7.8 billion Others 11% 14% Others 10% USD 89% 86% USD 90% Assets Liabilities Note: As of 30 November 2015 27

28. Slide 28: Growth, Earnings, Capital and Dividends

    Growth Earnings Capital and Dividends 28

29. Slide 29: IFRS Operating Profit up 16%

    IFRS Operating Profit up 16% Operating Margin 19.5% Operating Profit After Tax ($m) 18.2% +1.3pps 3,209 +16% 2,772 2014 2015 Expense Ratio 8.5% (0.2)pps 8.3% 2014 2015 2014 2015 Note: OPAT comparative is shown on a constant exchange rate basis 29

30. Slide 30: Resilient and Diversified Earnings

    Resilient and Diversified Earnings 2015 Sources of IFRS Operating Profit(1) 2015 IFRS OPAT by Market Segment Korea Return on 6% Net Worth Malaysia 14% 8% China Hong Kong 11% 33% Participating and Spread 22% Insurance and Other Fee-based Markets 64% 11% Thailand Singapore 17% 14% Note: (1) Before Gro

31. Slide 31: Delivering Sustainable Growth

    Delivering Sustainable Growth Operating Profit Before Tax ($m) 81% +66 +39 +159 +281 3,884 3,339 OPBT Insurance Fee Participating Return on OPBT 2014 Operating Based and Net Worth 2015 Income Income Spread Income Note: OPBT comparative is shown on a constant exchange rate basis 31

32. Slide 32: Stable Investment Yield

    Stable Investment Yield Investment Income ($m) Total Investments of $126b % as of 30 Nov 2015 5,645 Dividend 5,352 Cash & Cash and 636 551 Properties Equivalents Rental 4% 1% Income Equities 10% Interest 4,801 5,009 Income Fixed Income(1) 85% 2014 2015 Investment Yield 4.7% 4.6% Investment Return 6.

33. Slide 33: Conservative and High-quality Fixed Income Portfolio

    Conservative and High-quality Fixed Income Portfolio Total Bond Portfolio by Type % as of 30 November 2015 Conservative Fixed Income Portfolio(1) Structured Securities 1%  High proportion of government bonds Government  Average rating A- on corporate bond portfolio & Government Agency  Stable cre

34. Slide 34: IFRS Shareholders’ Equity Movement

    IFRS Shareholders’ Equity Movement IFRS Shareholders’ Equity Movement ($m) Allocated Equity Movement up 8% 3,021 3,209 ( 370 ) ( 148 ) ( 814 ) ( 10 ) 29,401 26,380 24,513 Allocated Equity Operating Profit Net Return Other Dividend Other Capital Allocated Equity Fair Value Shareholders' End of 2014 A

35. Slide 35: OPAT Recognition: Moving to Long-term Return

    OPAT Recognition: Moving to Long-term Return Principal Reporting Change Better Reflecting Underlying Performance  AIA will change its presentation of reported Properties 4% Move from dividend OPAT in 2016 Equities 10% and rental yield to Long-Term  This is consistent with the approach taken by Inv

36. Slide 36: OPAT: Summary of Changes in Presentation

    OPAT: Summary of Changes in Presentation 2015 Net Profit Reconciliation ($m) Previous Effect of New Presentation Change Presentation OPAT 3,209 +347 3,556 Non-operating Items (518) (347) (865) Net Profit 2,691 - 2,691 36

37. Slide 37: Profitable Growth – Delivered with Scale

    Profitable Growth – Delivered with Scale Contribution to Growth by Market OPAT 2010 2015 % of Growth Since IPO (1) >$1,000m - Hong Kong Hong Kong 23% $550-750m Hong Kong Thailand China 21% Singapore $350-550m - China Thailand 18% Other Markets Other Markets 17% Thailand Malaysia $150-350m Singapore

38. Slide 38: Growth, Earnings, Capital and Dividends

    Growth Earnings Capital and Dividends 38

39. Slide 39: Regulatory Solvency Ratio of 428%

    Regulatory Solvency Ratio of 428% Solvency Ratio on HKICO Basis for AIA Co. Ongoing Capital Strength 427% 428%  Resilient solvency position  Prudent HKICO reserves and capital  Strong retained earnings  AIA Co. S&P Rating of AA- and Required Moody’s Rating of Aa3 Level of 150% 2014 2015 Total Av

40. Slide 40: Self-financed Growth at Attractive Returns

    Self-financed Growth at Attractive Returns Free Surplus of $7.5b on the HKICO Basis ($m) 3,719 (1,488) (216) (1,444) (23) (814) 9,809 7,794 7,528 Free Surplus Underlying New Unallocated Investment Exchange Dividend Free Surplus End of 2014 Free Surplus Business Group Office Return Rates Paid End of

41. Slide 41: Increased Returns and Capital Efficiency Since IPO

    Increased Returns and Capital Efficiency Since IPO VONB ($m) New Business Strain as % of VONB 2,198 144% (76)pps 3.3x 68% 667 2010 2015 2010 2015 IRRs Consistently above 20% Decreasing Payback Periods (Years) 5 +41% 4 2010 2015 2010 2015 41

42. Slide 42: Disciplined Financial Management

    Disciplined Financial Management VONB ($m) Underlying Free Surplus Generation ($m) 2,198 3,719 1.7x 3.3x 2,239 667 2010 2015 2010 2015 New Business Investment ($m) Final Dividend Per Share (HK cents) 1,488 51.00 1.6x 2.3x 958 22.00 2010 2015 2011 2015 42

43. Slide 43: Upward Rebasing of Final Dividend Per Share by 50%

    Upward Rebasing of Final Dividend Per Share by 50% Final Dividend Per Share (HK cents) 2.3x 51.00 +50% 34.00 +19% +16% 28.62 +12% 24.67 22.00 2011 2012 2013 2014 2015 43

44. Slide 44: 2015 Financial Results Summary

    2015 Financial Results Summary  Considerable growth in profitable new business Growth  Significant capital investment at high returns  Improvement in new business capital efficiency  Strong increase in IFRS operating profit Earnings  Consistent growth across the region  Diversified and scale s

45. Slide 45: Gordon Watson

    Gordon Watson Regional Chief Executive

46. Slide 46: Hong Kong: Another Excellent Performance

    Hong Kong: Another Excellent Performance VONB ($m)  Premier Agency 820  Delivered excellent VONB growth 619 +32%  Generation Y recruitment focus  Active new agents up 21%  Active agent productivity up 21%  4th largest MDRT company worldwide  Profitable Partnerships  Significant growth in all

47. Slide 47: Other Markets: Excellent Broad-based Results

    Other Markets: Excellent Broad-based Results VONB ($m)  Double-digit VONB growth Australia 250  #1 ranked in IFA individual life market +32%  Significant increase in OPAT 190  Premier Bancassurance model Indonesia  Agency VONB up 37% in 2H  Captured profitable market share: #2 ranked Philippin

48. Slide 48: Bill Lisle

    Bill Lisle Regional Chief Executive

49. Slide 49: Malaysia: Delivering Excellent Growth

    Malaysia: Delivering Excellent Growth VONB ($m)  Premier Agency 172  Quality recruitment and training initiatives 135 +27%  MDRT qualifiers up more than 30%  Active new agents up more than 20% in 2H  More than 90% iPoS policy submission rate  Active Takaful-producing agents up 40% in 2H  Prof

50. Slide 50: Korea: Challenging Market Conditions

    Korea: Challenging Market Conditions VONB ($m)  Direct Marketing 76  Selective recruitment strategy (39)%  New incentive schemes introduced 46  Net TSRs increased in 4Q  Premier Agency  Differentiated agency model  Use of iPoS to improve agent productivity 2014 2015  Products and Customers 

51. Slide 51: India: JV Update

    India: JV Update x THE REAL LIFE TATA AIA Lire

52. Slide 52: Ng Keng Hooi

    Ng Keng Hooi Regional Chief Executive

53. Slide 53: Singapore: Sustained Profitable Growth

    Singapore: Sustained Profitable Growth VONB ($m)  Premier Agency 341 +24%  Solid VONB growth 276  iPoS established as primary sales tool  MDRT qualifiers up 17%  Profitable Partnerships  Excellent VONB growth  Products and Customers 2014 2015  New packaged participating savings and protectio

54. Slide 54: Thailand: Solid Performance

    Thailand: Solid Performance VONB ($m)  Premier Agency 395 +15%  Recruitment programme targeting young 344 and highly-educated new recruits  Substantial investment in in-house training  Unit-linked licensed agents up 77%  AIA accounts for around 80% of industry agents licensed to sell unit-linke

55. Slide 55: China: Sustained Outperformance

    China: Sustained Outperformance VONB ($m) 366  Premier Agency  Differentiated product and distribution strategy +45% 253  Focus on quality recruitment and training  New recruits up over 50%  Active agents up 33%  MDRT qualifiers up 71%  Products and Customers  Protection market leadership dr

56. Slide 56: Mark Tucker

    Mark Tucker Group Chief Executive

57. Slide 57: Long-term Structural Growth Drivers

    Long-term Structural Growth Drivers Large  4.1 billion people by 2020; increase of 700 million people since 2000 Population  4x the population of the G7 in 2020 Growth Rapid  1.7 billion urban dwellers by 2020, an additional 720 million in 20 years Urbanisation  2x the urban population of the G7

58. Slide 58: Sustained Delivery Through Market Cycles

    Sustained Delivery Through Market Cycles 2010 2011 2012 2013 2014 2015  Anaemic GFC  US sovereign  Expansionary  Strengthening  Lower for  US increase recovery downgrade policy; US QE3 US recovery longer interest interest rates rates  Deepening  Continued  European  Taper tantrum  Oil pri

59. Slide 59: AIA Group – Sustainable, Profitable Growth

    AIA Group – Sustainable, Profitable Growth  Unprecedented long-term structural growth drivers  Market-leading franchise and brand  Advantaged platform and clear strategy  Experienced and proven management team  Consistent, sustainable execution  Strong financial discipline 59

60. Slide 60: Q&A Session

    Q&A Session

61. Slide 61: Definitions and Notes

    Definitions and Notes  Annualised new premiums (ANP) excludes pension business.  Change on constant exchange rates is calculated using constant average exchange rates for current year and prior year.  EV Equity is the total of embedded value, goodwill and other intangible assets attributable to s

62. Slide 62: Appendix

    APPENDIX , THE REAL LIFE EX COMPANY 41

63. Slide 63: Capital Fungibility

    Capital Fungibility Net Funds Remitted to Group(1) ($m) Group Working Capital ($m) 7,843 2,195 6,614 1,733 1,718 1,583 5,556 1,521 1,525 5,185 3,912 2,180 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Note: (1) Excluding $618m from Singapore subsidiarisation in 2011 63

64. Slide 64: 2015 Working Capital Movement

    2015 Working Capital Movement Working Capital Movement ($m) 183 ( 98 ) ( 814 ) 2,195 ( 237 ) 7,843 6,614 Working Capital Net Funds Increase in Purchase of Cost of Change in Fair Working Capital End of 2014 Remitted Borrowings Shares Held by Dividend Value Reserve End of 2015 Employee Share- Paid and

65. Slide 65: 2015 ANW Movement

    2015 ANW Movement ANW Movement ($m) 3,364 ( 902 ) ( 83 ) ( 76 ) ( 1,494 ) 436 ( 593 ) ( 814 ) 17,654 15,351 15,189 ANW Expected Contribution Operating Finance ANW Investment Other Non- Exchange Dividend ANW End of 2014 Return to Variances Costs Before Variances operating Rates and Paid End of 2015 A

66. Slide 66: 2015 VIF Movement

    2015 VIF Movement VIF Movement ($m) 331 ( 165 ) ( 67 ) ( 1,326 ) 3,100 ( 666 ) 24,567 23,009 21,802 VIF Expected Contribution to Operating VIF Investment Other Non- Exchange VIF End of 2014 Return VIF from VONB Variances and Before Return Variances operating Rates and End of 2015 Assumption Non-oper

67. Slide 67: 2015 IFRS Shareholders’ Equity and ANW

    2015 IFRS Shareholders’ Equity and ANW Reconciliation of IFRS Shareholders’ Equity to ANW ($m) ( 6,891 ) 1,249 ( 1,834 ) 2,582 ( 112 ) ( 9,206 ) - 29,401 24,395 15,189 Equity Difference Mark-to-market Deferred Tax Elimination of Non-controlling Group ANW Adjustment to Group ANW End of 2015 Between I

68. Slide 68: 2014 Free Surplus Movement

    2014 Free Surplus Movement Free Surplus on the HKICO Basis ($m) 3,552 (1,655) 845 (67) (689) (119) (800) 7,705 7,794 6,727 5,927 Free Surplus Citibank Free Surplus Underlying New Unallocated Free Surplus Investment Finance Cost Dividend Free Surplus End of 2013 Upfront at Beginning Free Surplus Busi

69. Slide 69: Robust Capital Structure

    Robust Capital Structure Solvency Ratio AIA Capital Structure ($b) on HKICO Basis for AIA Co. 2015 Leverage Ratio(1) 9.8% 433% 427% 428% Borrowings 3.2 353% 311% Total Equity 29.5 2011 2012 2013 2014 2015 Note: (1) Leverage ratio defined as Borrowings / (Borrowings + Total Equity) 69

70. Slide 70: Total Invested Assets

    Total Invested Assets Total Invested Assets by Type Other Participating Policyholder $m Funds and Total Total $126.4b Shareholder Fixed Income 20,973 86,485 107,458 Fixed income 85% Equities 4,915 7,296 12,211 Equities 10% Cash and cash Cash and cash equivalents 1% 204 1,338 1,542 equivalents Deriva

71. Slide 71: Fixed Income Portfolio

    Fixed Income Portfolio Total Fixed Income by Type Total Bonds by Rating Total $107.5b Total $100.5b Average Rating A- Government & Government 40% AAA 5% Agency Bonds AA 23% Corporate Bonds 52% A 38% Structured Securities 1% BBB 28% Loans and deposits BB & Below (1) 6% 7% Note: As of 30 November 2015

72. Slide 72: Fixed Income Portfolio (Cont.)

    Fixed Income Portfolio (Cont.) Total Bonds by Accounting Classification Fixed Income Portfolio by Maturity(1) Total $100.5b Other Policyholder & 10+ Years & 80% No Fixed 52% 53% Shareholder (AFS) Maturity Participating Funds 19% (FVTPL) Other Policyholder & 1% Shareholder (FVTPL) 5 – 10 Years 25% 26

73. Slide 73: Government Bond Portfolio

    Government Bond Portfolio Government and Agency Bonds Government and Agency Bonds by Rating by Geography Total $43.3b Total $43.3b Thailand 25% AAA 11% China 23% AA 38% Korea 17% A 36% Singapore 12% Malaysia 8% BBB 11% Philippines 7% BB & Below 4% Others 8% Note: As of 30 November 2015 73

74. Slide 74: Government Bond Portfolio (Cont.)

    Government Bond Portfolio (Cont.) Government Bonds (issued in local currency) Countries Rating Total ($m) Thailand A 10,268 China AA 6,614 Korea AA 3,650 Singapore AAA 2,554 Philippines BBB 2,626 Malaysia A 1,939 Indonesia BB 569 Others 660 Total 28,880 Government Bonds (issued in foreign currency)

75. Slide 75: Government Agency Bond Portfolio

    Government Agency Bond Portfolio Government Agency Bonds by Rating Rating Total ($m) Total $12.1b Average Rating AA- AAA 2,224 AAA 19% AA 5,105 AA 42% A 3,283 A 27% BBB 1,318 BBB 11% BB and below 126 BB and below 1% Total 12,056 Note: As of 30 November 2015 75

76. Slide 76: Corporate Bond Portfolio

    Corporate Bond Portfolio Corporate Bonds by Rating Rating Total ($m) Total $56.2b Average Rating A- AAA 229 AAA 1% AA 6,710 AA 12% A 22,119 A 39% BBB 22,973 BBB 41% BB and below(1) 4,156 (1) BB and below 7% Total 56,187 Note: As of 30 November 2015 (1) Including not rated bonds 76

77. Slide 77: High Yield Oil and Gas & Eurozone Bank Exposures

    High Yield Oil and Gas & Eurozone Bank Exposures High Yield Oil & Gas Corporate Bond Exposures National Exploration & Oil/Gas Field Refining & Storage & Integrated Oils Oil Companies Production Services Marketing Transport 0.80% - - 0.04% 0.02% 0.03% 0.09% Eurozone Bank Exposures Senior Debt Subordi

78. Slide 78: Structured Security Portfolio

    Structured Security Portfolio Structured Securities by Rating Rating Total ($m) Total $980m Average Rating BBB+ AAA 11 AAA 1% AA 168 AA 17% A 252 A 26% BBB 411 BBB 42% BB and below(1) 138 BB and below(1) 14% Total 980 Note: As of 30 November 2015 (1) Including not rated bonds 78

79. Slide 79: Impairment Experience During GFC

    Impairment Experience During GFC AIA Impairments on 2008 Impairment Charges Invested Assets ($m) as % of Invested Assets 5.6% 142 67 1.8% 1.5% 1.5% 0.3% - 1 - - - - - 2007 2008 2009 2010 2011 2012 2013 2014 2015 Co. A Co. B Co. C Co. D AIA 79

80. Slide 80: Risk Discount Rate and Risk Premium

    Risk Discount Rate and Risk Premium As at 30 Nov 2010 As at 30 Nov 2015 Risk Discount 10-year Risk Risk Discount 10-year Risk % Rates Govt Bonds Premium Rates Govt Bonds Premium Australia 8.75 5.65 3.10 7.75 3.40 4.35 China 10.00 3.74 6.26 9.75 3.70 6.05 Hong Kong 8.00 3.53 4.47 7.00 2.50 4.50 Indon

81. Slide 81: Sensitivity Analysis – EV

    Sensitivity Analysis – EV Sensitivity of EV as at 30 November 2015 Equity prices + 10% 1.9% Equity prices - 10% -1.9% Interest rates + 50 bps 0.3% Interest rates - 50 bps -0.3% Presentation currency 5% appreciation -2.6% Presentation currency 5% depreciation 2.6% Lapse/discontinuance rates + 10% -1.

82. Slide 82: Sensitivity Analysis – VONB

    Sensitivity Analysis – VONB Sensitivity of VONB as at 30 November 2015 Interest rates + 50 bps 6.3% Interest rates - 50 bps -7.4% Presentation currency 5% appreciation -3.4% Presentation currency 5% depreciation 3.4% Lapse rates + 10% -6.1% Lapse rates - 10% 6.5% Mortality/morbidity rates + 10% -13.

AIA Group — FY2015 Earnings Presentation on 6ix