HONG KONG, March 29, 2026, 18:10 HKT
AIA Group, the Hong Kong-listed insurer, said Friday it’s set to launch a US$1.743 billion automatic share buyback under a new broker agreement, with trading set to kick off March 30 and potentially running up to four months, according to its Hong Kong filing.
This move makes AIA’s capital return, first announced with its March 19 annual results, a live market operation. It comes just days after news of an $18 billion medium-term note programme spooked investors, sending shares tumbling 7.8%—the steepest single-day drop in almost a year. AIA later clarified that the $18 billion represented a debt programme cap, not the amount it intends to issue.
AIA is making the case that it can keep sending cash back to investors without sacrificing the balance sheet flexibility it needs for growth in its Asian markets. The whole sector is under the microscope: Prudential revealed a fresh $1.2 billion buyback starting in 2026 just last week, while Ping An posted higher 2025 earnings on Thursday but flagged tougher external conditions ahead.
AIA reported a 15% surge in its 2025 value of new business, hitting a record US$5.516 billion on a constant-currency basis. Operating profit after tax came in at US$7.136 billion. The board raised the final dividend by 10%, now paying out 144.08 Hong Kong cents per share.
Hong Kong powered ahead, with new business value soaring 28% thanks to strong demand from both local clients and visitors from mainland China. Growth in mainland China was far more subdued, up just 2%. Thailand notched a 13% increase.
Group Chief Executive Lee Yuan Siong described AIA as heading into 2026 with “strong business momentum.” The company, in its results release, pointed to the higher dividend and new buyback as signals of its “future prospects and financial strength.” AIA
Chief Financial Officer Garth Jones told analysts that the US$1.7 billion buyback combined US$0.7 billion from AIA’s regular capital return formula with an additional US$1 billion, following a review of the group’s capital position. Jones added that AIA was “very comfortable” with its leverage, calling the current level appropriate. AIA
Lee said AIA plans to “continue to expand” in China, having entered nine new regions since 2019—unlocking access to 200 million more middle-class and affluent customers. Mainland China, then, remains at the heart of AIA’s growth strategy, despite last year’s expansion there trailing the pace seen in Hong Kong. AIA
The buyback hasn’t solved everything. AIA got a special waiver from Hong Kong’s exchange, letting its broker keep buying even during blackout periods—times ahead of results when most companies can’t repurchase shares. Investors remain focused on funding costs, especially following this week’s debt filing. According to Reuters, fears have been stoked by higher U.S. yields and a general pullback from risk.
AIA has been relying on buybacks for a while. The company reported it had snapped up roughly 1.603 billion shares by Dec. 31, 2025, trimming its outstanding share count by 13%. As of year-end, its shareholder capital ratio measured 221%. Hong Kong regulations require the group to reveal any purchases on the following trading day, AIA said.
