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AIA Group
(OTC:AAGIY)
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Rating:70Outperform
Price Target:
$41.00
â–²(7.64% Upside)
Action:Upgraded
Date:08/20/26
The score is driven primarily by solid (but volatile) financial performance and a very constructive earnings call with upgraded confidence in exceeding prior growth targets and continued capital returns. These positives are partially offset by weak technical setup (below key moving averages with negative MACD), while valuation and dividend yield appear reasonable and supportive.
Positive Factors
Broad-based earnings and new-business growth
Double-digit growth across new business, operating earnings and embedded-value profit indicates sustained customer demand and effective execution. Exceeding the prior OPAT target would support a stronger multi-year earnings trajectory across AIA’s Asian markets.
Negative Factors
Volatile cash conversion and rising leverage
Although AIA remains profitable and generates positive free cash flow, weaker recent cash conversion reduces visibility over distributable resources. Rising debt also increases sensitivity to asset values and interest-rate movements, which can constrain financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based earnings and new-business growth
Double-digit growth across new business, operating earnings and embedded-value profit indicates sustained customer demand and effective execution. Exceeding the prior OPAT target would support a stronger multi-year earnings trajectory across AIA’s Asian markets.
Read all positive factors
AIA Group (AAGIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.27B
Dividend Yield2.54%
Average Volume (3M)148.51K
Price to Earnings (P/E)13.0
Beta (1Y)0.10
Revenue Growth13.00%
EPS Growth36.35%
CountryUS
Employees27,421
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.04
Shares Outstanding2,586,661,100
10 Day Avg. Volume203,868
30 Day Avg. Volume148,509
Financial Highlights & Ratios
PEG Ratio-3.59
Price to Book (P/B)2.50
Price to Sales (P/S)3.33
P/FCF Ratio21.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.03
Revenue Forecast (FY)$24.31B
AIA Group Business Overview & Revenue Model
Company Description
AIA Group Limited, together with its subsidiaries, provides life insurance based financial services in Hong Kong. The company offers life insurance, accident, and health insurance and savings plans; and employee benefits, credit life, and pension ...
How the Company Makes Money
AIA makes money primarily by underwriting and administering long-duration insurance and savings-type policies and earning income on the assets it holds to back those obligations. Key revenue and earnings drivers include: (1) Policy-related charges...
AIA Group Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 05, 2027
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance: record VONB, double-digit growth across new business, earnings and cash, record ROE/ROEV, robust cash returns and a 10% dividend increase. Most key markets including China, Hong Kong, ASEAN and India showed healthy growth and improved economics, and management reiterated confidence in exceeding prior OPAT per share targets. Key risks discussed were largely short-term or transitional: regulatory/product redesign impacts in China bancassurance, market/regulatory noise around CMV demand, some quarterly volatility and competition in Hong Kong, and timing of holding company cash flows. Overall, the substantive and broad-based growth metrics and capital returns outweighed the noted challenges, which management framed as manageable or being mitigated.Positive Updates
Record Value of New Business (VONB)
VONB reached a record $3.2 billion, up 10% year-on-year; underlying VONB growth was 14% when adjusting for Thailand; VONB has been compounding at ~17% p.a. over the last 3 years.
Negative Updates
H1 VONB Growth Below Mid-Teens Historic Pace
Group VONB grew 10% in H1 2026 versus historical mid-teens compounding (17% p.a. over 3 years), implying growth will need to accelerate in H2 for some investor expectations to be met.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Value of New Business (VONB)
VONB reached a record $3.2 billion, up 10% year-on-year; underlying VONB growth was 14% when adjusting for Thailand; VONB has been compounding at ~17% p.a. over the last 3 years.
Read all positive updates
Company Guidance
Management guided that AIA expects to exceed its previously stated OPAT per‑share CAGR target of 9–11% for 2023–2026, underpinned by H1 results including VONB of $3.2bn (up 10%), OPAT $4.2bn (up 13% per share), operating ROE of 17.5%, EV operating profit $6.6bn (up 12% per share) and EV equity of $83.4bn after $3.6bn returned in H1; they reiterated their capital policy to return 75% of annual net free surplus generation (net free surplus generation $2.8bn, up 12% per share; UFSG $3.9bn, up 10% per share), declared a 10% higher interim dividend of HKD 0.539, flagged a strong holding‑company position (shareholder capital ratio 210%), and pointed to an in‑force portfolio expected to generate $57bn of distributable earnings over 10 years (up 15% year‑on‑year), with new‑business economics of >20% IRR, ~$4 of distributable earnings per $1 of new‑business capital within 10 years and a ~3‑year payback.AIA Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.45B | 32.53B | 20.36B | 19.76B | 57.14B | 46.36B |
| Gross Profit | 27.23B | 32.53B | 28.02B | 19.76B | -18.87B | 47.99B |
| EBITDA | 10.22B | 8.13B | 8.92B | 5.46B | 4.46B | 9.22B |
| Net Income | 7.99B | 6.23B | 6.84B | 3.76B | 3.33B | 7.43B |
Balance Sheet | ||||||
| Total Assets | 360.04B | 345.43B | 305.44B | 286.31B | 270.46B | 334.89B |
| Cash, Cash Equivalents and Short-Term Investments | 7.78B | 9.61B | 8.10B | 11.52B | 8.02B | 4.99B |
| Total Debt | 21.16B | 20.58B | 18.29B | 15.63B | 13.35B | 11.65B |
| Total Liabilities | 319.01B | 301.82B | 264.63B | 244.72B | 225.32B | 273.96B |
| Stockholders Equity | 40.68B | 43.25B | 40.49B | 41.11B | 44.67B | 60.47B |
Cash Flow | ||||||
| Free Cash Flow | 1.41B | 5.13B | 3.03B | 10.59B | 9.48B | 3.27B |
| Operating Cash Flow | 1.58B | 5.33B | 3.26B | 10.92B | 9.87B | 3.91B |
| Investing Cash Flow | -479.99M | -939.92M | -945.00M | -2.14B | -817.00M | -2.78B |
| Financing Cash Flow | -3.30B | -3.07B | -5.69B | -6.07B | -4.79B | -1.66B |
AIA Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $62.04B | 18.59 | 12.95% | 2.38% | 8.96% | -11.62% | |
72 Outperform | $58.76B | 12.58 | 16.42% | 2.06% | 13.57% | 110.75% | |
72 Outperform | $42.10B | 10.94 | 12.00% | 4.55% | 9.38% | 144.26% | |
72 Outperform | $34.35B | 9.73 | 18.25% | 1.92% | 38.57% | 10.07% | |
70 Outperform | $102.27B | 13.01 | 19.05% | 2.54% | 13.00% | 36.35% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $8.71B | 3.79 | 21.99% | 3.96% | 12.32% | 97.86% |
* Financial Sector Average
AAGIY
AIA Group
39.54
2.92
7.98%
AFL
AFLAC
117.21
13.05
12.53%
LNC
Lincoln National
45.47
5.67
14.24%
MET
Metlife
97.62
20.23
26.14%
PRU
Prudential Financial
122.02
21.50
21.39%
PUK
Prudential
27.75
1.31
4.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.