Corporate Bond Portfolio and Investment Analysis
Definitions and Notes (Cont.)
AIA
☐
☐
B
☐
☐
☐
"
☐
"
ANW is the market value of assets in excess of the assets backing the policy reserves and other liabilities of the life (and similar) business of AIA, plus the IFRS equity value of other activities, such as
general insurance business, less the value of intangible assets. It excludes any amounts not attributable to shareholders of AIA Group Limited. ANW for AIA is stated after adjustment to reflect consolidated
reserving requirements. ANW by market is stated before adjustment to reflect consolidated reserving requirements, and presented on a local statutory basis.
ASEAN, officially the Association of Southeast Asian Nations, businesses refers to operations in Thailand, Singapore, Malaysia, Vietnam, Indonesia, the Philippines, Cambodia, Myanmar and Brunei.
Composition of investments includes participating funds and other participating business with distinct portfolios, non-par funds and surplus assets.
Comprehensive equity is defined as shareholders' equity plus net contractual service margin (CSM).
CSM is a component of the carrying amount of the asset or liability for a group of insurance contracts representing the unearned profit the entity will recognise as it provides insurance contract services under
the insurance contracts in the group.
EV Equity is the total of embedded value, goodwill and other intangible assets attributable to shareholders of the Company, after allowing for taxes.
Fair value reserve comprises the cumulative net change in the fair value of debt securities measured at fair value through other comprehensive income and the cumulative related loss allowance recognised
in profit or loss.
Free surplus is the excess of the market value of AIA's assets over the sum of the statutory liabilities, required capital and adjustment for certain assets not eligible for regulatory capital purposes.
Holding company financial resources represent the debt securities, equity shares and interests in investment funds, deposits, cash and cash equivalents and dividends paid but not settled by subsidiaries, net
of obligations under repurchase agreements, at the Group's listed holding company, AIA Group Limited.
IFRS operating profit includes the expected long-term investment return for equities and real estate.
Insurance contract services are the services that the Group provides to a policyholder of an insurance contract: (a) coverage for an insured event (insurance coverage); (b) for insurance contracts without
direct participation features, the generation of an investment return for the policyholder, if applicable (investment-return service); and (c) for insurance contracts with direct participation features, the
management of underlying items on behalf of the policyholder (investment-related service).
Insurance finance reserve comprises the cumulative insurance finance income or expenses recognised in other comprehensive income.
Insurance service result comprises insurance revenue, insurance service expenses and net expenses from reinsurance contracts held.
Leverage ratio is total borrowings expressed as a percentage of the sum of total borrowings, total equity and CSM net of reinsurance and taxes.
Net CSM is the contractual service margin net of reinsurance, taxes and non-controlling interests.
Net investment result comprises investment return, net finance income or expenses from insurance contracts and reinsurance contracts held, movement in investment contract liabilities and movement in
third-party interests in consolidated investment funds.
☐
New business contractual service margin (NB CSM) represents the contractual service margin initially recognised in the period.
36View entire presentation