Insurance giant AIA will buy back US$10 billion of shares over three years as new policy sales, M&A deals drive profit growth
- The insurer conducted a number of deals last year, which helped boost net profit by 28 per cent to US$7.48 billion, beating analysts’ estimates
- AIA joins a wave of financial firms buying back stock, after HSBC and Standard Chartered announced similar moves
“The share buy-back programme enhances return to shareholders while retaining the financial strength that allows AIA to continue investing in the significant growth opportunities available to it,” said Lee Yuan Siong, group chief executive and president, in a stock exchange filing.
AIA, which traces its roots to 1919 in Shanghai, joins a wave of financial firms buying back stock.
HSBC announced a US$1 billion share buy-back last month, adding to a US$2 billion programme announced late in 2021. Standard Chartered plans to buy back US$750 million of shares.
05:12
‘No choice’: Hong Kong security boss says residents asked to go into Covid isolation must comply
“Buying back the shares will cut down the number of shares in circulation and hence will help boost the share price of the company. It is positive news for its shares price,” said Tom Chan Pak-lam, chairman of the Hong Kong Institute of Securities Dealers.
