Corporate Bond Portfolio and Investment Analysis

$1.7b Net Investment Result from Non-Par and Surplus Assets 1H23 Net Investment Result After Expenses ($m) From Non-Par and Surplus Assets Expected long-term investment return for equities and real estate 2,818 (1,000) 662 Interest revenue on 2,156 financial assets Investment Return Insurance Finance Expenses and Others (3) ☐ ☐ AIA 1H22 FY22 1H23 (97) 1,721 Fixed Income Yield (1) 4.1% 4.2% 4.3% Investment Management Expenses Total Investment Return (2) 4.3% 4.5% 4.8% Net Investment Result After Expenses Unwind of discount rate on non-par insurance contract liabilities Uses a level discount rate locked-in at contract issue Average insurance contract liabilities (4) balance of $63.1b in 1H23 Rate changes gradually over time with new business Notes: Excludes participating funds and other participating business with distinct portfolios, unit-linked contracts and consolidated investment funds Interest revenue from fixed income investments, as a percentage of average amortised cost of fixed income investments over the period Interest revenue from fixed income investments, cash and cash equivalents and expected long-term investment returns of equities and real estate, as a percentage of average fixed income investments, cash and cash equivalents, equities and real estate over the period Primarily represents interest accreted on non-par business liabilities net of investment return relating to unit-linked business with significant protection (4) Net of reinsurance, insurance contract asset and insurance finance reserve (1) (2) (3) 20 47

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