|
Cayman Islands
|
| |
6411
|
| |
Not Applicable
|
|
|
(State or Other Jurisdiction of
Incorporation or Organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Colin J. Diamond, Esq.
White & Case LLP 1221 Avenue of the Americas New York, New York 10020 United States +1-212-819-8200 |
| |
Kaya Proudian, Esq.
White & Case Pte. Ltd. 8 Marina View #27-01 Asia Square Tower 1 Singapore 018960 +65-6225-6000 |
| |
Jessica Zhou, Esq.
White & Case 9th Floor Central Tower 28 Queen’s Road Central Hong Kong SAR +852-2822-8700 |
| |
Alyssa Caples, Esq.
Nicholas Dorsey, Esq. Cravath, Swaine & Moore LLP CityPoint One Ropemaker Street London EC2Y 9HR United Kingdom +44-20-7453-1000 |
| |
John D. Moore, Esq.
Slaughter and May 47th Floor, Jardine House One Connaught Place Central Hong Kong SAR +852 2521-0551 |
|
| | ||||||||||||||
Title of Each Class of
Securities to be Registered(1) |
| | |
Proposed Maximum
Aggregate Offering Price(2)(3) |
| | |
Amount of
Registration Fee |
| ||||||
Class A ordinary shares, par value US$0.01 per share
|
| | | | US$ | 100,000,000 | | | | | | US$ | 10,910.00 | | |
| | | | | iii | | | |
| | | | | 1 | | | |
| | | | | 17 | | | |
| | | | | 21 | | | |
| | | | | 74 | | | |
| | | | | 75 | | | |
| | | | | 76 | | | |
| | | | | 77 | | | |
| | | | | 79 | | | |
| | | | | 81 | | | |
| | | | | 83 | | | |
| | | | | 84 | | | |
| | | | | 91 | | | |
| | | | | 95 | | | |
| | | | | 165 | | | |
| | | | | 167 | | | |
| | | | | 186 | | | |
| | | | | 216 | | | |
| | | | | 226 | | | |
| | | | | 255 | | | |
| | | | | 277 | | | |
| | | | | 280 | | | |
| | | | | 287 | | | |
| | | | | 299 | | | |
| | | | | 314 | | | |
| | | | | 317 | | | |
| | | | | 323 | | | |
| | | | | 336 | | | |
| | | | | 337 | | | |
| | | | | 337 | | | |
| | | | | 337 | | | |
| | | | | A-1 | | | |
| | | | | B-1 | | | |
| | | | | F-1 | | |
|
“Actual Exchange Rate” or “AER”
|
| | actual exchange rates for the relevant periods used for the purpose of calculation of growth. | |
|
“Adjusted Net Worth” or “ANW”
|
| | the statutory net asset value, reflecting the excess of assets over policy reserves and other liabilities reported on a local regulatory basis plus/minus mark-to-market adjustments for assets that have not been held on a market value basis minus the value of intangible assets. | |
|
“Adjusted Net UFSG”
|
| | Net UFSG excluding one-off opening adjustments (including non-economic assumption change) and expense overruns. | |
|
“Annualized Premium Equivalent” or “APE”
|
| | the sum of 10% of single premiums and 100% of annualized first year premiums for all new policies, before reinsurance ceded. Consistent with customary industry practice, a factor of 10% is applied to single premiums because such weighting makes the value of a single premium sale broadly equivalent to the same dollar amount of first year premiums. APE provides an indicative volume measure of new policies issued in the relevant period. See note 6.4 to the audited consolidated financial statements included elsewhere in this prospectus for more information. For takaful business, APE refers to annualized contribution equivalent. | |
|
“as-converted basis”
|
| | assuming (i) that each outstanding preference share and convertible preference share in FL or FGL is converted into one ordinary share in FL or FGL, as the case may be, in connection with the Reorganization Conversion, and (ii) the completion of the Reorganization and taking account of the Share Split. This does not take into account any difference between the total number of ordinary shares of our company that will be issued to certain the holders of convertible preference shares in FL and FGL as a result of the Reorganization Conversion and those under the assumptions described above. | |
|
“bancassurance”
|
| | the distribution of insurance products through banks or other financial institutions. | |
|
“CAGR”
|
| | compound annual growth rate. | |
|
“cede”
|
| | the transfer of all or part of a risk written by an insurer to a reinsurer. | |
|
“Constant Exchange Rate” or “CER”
|
| | constant exchange rate used for the calculation of growth and is based on average exchange rates of relevant periods, other than for balance sheet items where growth as at the end of the current year over the end of the prior year is based on end of period exchange rates. | |
|
“claim”
|
| | an occurrence that is the basis for submission and/or payment of a benefit under an insurance policy. Depending on the terms of the insurance policy, a | |
| | | | claim may be covered, limited or excluded from coverage. | |
|
“customer”
|
| | anyone who owns or receives value from insurance products and services. Customers are categorized as either individual customers or group scheme customers. | |
|
“COLI”
|
| | corporate-owned life insurance. | |
|
“commission”
|
| | a fee paid to a distribution partner by an insurance company for services rendered in connection with the sale or maintenance of an insurance product. | |
|
“conversion rate”
|
| | the percentage of quoted leads that convert into successful sales. | |
|
“D2C”
|
| | direct-to-customer. | |
|
“Embedded Value” or “EV”
|
| | an actuarial method of measuring the consolidated value of shareholders’ interests in the existing business of an insurance company. Represents an estimate of the economic value of its life insurance business based on a particular set of assumptions as to future experience, excluding any economic value attributable to any future new business. | |
|
“Embedded Value Equity” or “EV Equity”
|
| | the equity attributable to shareholders on an actuarial basis, reflecting the Group EV, adjusted to include goodwill and other intangible assets attributable to shareholders. It is presented on a net-of-financing basis. Financing for this purpose includes debt held by us and comprises borrowings and perpetual securities. | |
|
“Embedded value operating profit” or “EV Operating Profit”
|
| | the change in EV over the relevant period, adjusted for movements relating to acquisitions, partnerships and discontinued businesses, economic variance, economic assumption charge, non-operating variance, capital movements, corporate adjustments, financing and foreign exchange movement. It comprises expected returns on EV, VNB, operating variance, and the impact of operating assumption changes. The results have been presented before allowing for operating expense and commission variance as these are considered as short term variances as Business Units are still in their growth phase and have not achieved economies of scale. | |
|
“exclusive bancassurance partnerships” or “exclusive bancassurance arrangements”
|
| | our exclusive bancassurance partnerships in-market generally require bancassurance partners to distribute our products on either an exclusive or preferred basis to their customers across networks and jurisdictions specified under their contracts and subject to applicable laws and regulations. Exclusive bancassurance arrangements commonly include termination rights which may be triggered if specific, pre-defined conditions are met, for example upon material breaches by either party, in the event a party becomes a competitor, upon a change of control or in the event of force majeure; in addition, in limited cases exclusivity also applies to us over the partnership term. | |
|
“expense ratio”
|
| | operating expenses expressed as a percentage of TWPI for the relevant period. | |
|
“financial investments”
|
| | equity and fixed income securities plus receivables and derivative financial instruments classified as assets, excluding cash and cash equivalents. | |
|
“first year premiums”
|
| | premiums received in the first year of a recurring premium policy. As such they provide an indication of the volume of new policies sold. | |
|
“Free Surplus”
|
| | excess of adjusted net worth, i.e. adjusted statutory net asset value attributable to shareholders, over the required capital. | |
|
“Group Embedded Value” or “Group EV”
|
| | the consolidated EV of our Group and is presented on a net-of-financing basis. Financing for this purpose includes debt held and comprises borrowings and perpetual securities. | |
|
“Group Office”
|
| | employees from FWD Group Financial Services Pte. Ltd, FWD Group Management and Valdimir Pte. Ltd. | |
|
“GWP”
|
| | gross written premiums calculated based on applicable guidelines promulgated by the relevant insurance authorities. | |
|
“GWS”
|
| | group-wide supervision framework introduced by the HKIA, which came into effect on March 29, 2021. | |
|
“high net worth” or “HNW”
|
| | individuals who have investable assets of US$1 million or more. | |
|
“HKEX”
|
| | The Stock Exchange of Hong Kong Limited. | |
|
“IFA”
|
| | independent financial adviser. | |
|
“IFRS”
|
| | International Financial Reporting Standards. | |
|
“in-force customers,” “in-force agents,”
“in-force products” or “in-force policies” |
| | customers, agents or products with respect to an insurance policy or contract reflected on records that has not expired, matured or otherwise been surrendered or terminated, or such policies or contracts themselves. | |
|
“investment experience”
|
| | realized gains and losses, impairments and unrealized gains and losses on investments held at fair value through profit or loss. | |
|
“LCSM”
|
| | local capital summation method. | |
|
“lifetime value”
|
| | policyholder lifetime value is calculated by discounting the aggregate VNB of a policyholder’s purchase over his or her life to today’s value. | |
|
“MCV”
|
| | mainland Chinese visitor. | |
|
“morbidity” or “morbidity rate”
|
| | Incidence rates and period of disability, varying by such parameters as age, gender and period since disability, used in pricing and computing liabilities for accident and health insurance. | |
|
“mortality” or “mortality rate”
|
| | rate of death, varying by such parameters as age, gender and health, used in pricing and computing liabilities for life and annuity products, which contain mortality risks. | |
|
“net premiums”
|
| | life insurance premiums net of reinsurance premiums ceded to reinsurers. | |
|
“net Underlying Free Surplus Generation” or “net UFSG”
|
| | underlying free surplus generation, allowing for the free surplus used to fund new business. It excludes investment return variances and other items such as the impact of acquisitions, new partnerships and discontinued businesses, capital movements and impact | |
| | | | of financing. | |
|
“O2O”
|
| | collectively, online-to-online, online-to-offline and offline-to-online. | |
|
“offshore”
|
| | (x) with respect to our Hong Kong business, an offshore policy is any policy where the policyholder does not have or disclose a Hong Kong identity card number and an offshore customer is any customer who does not have or disclose a Hong Kong identity card; and (y) with respect to our Macau business, an offshore policy is any policy where the policyholder is not a resident of Macau and an offshore customer is any customer who is not a resident of Macau. | |
|
“onshore”
|
| | (x) with respect to our Hong Kong business, an onshore policy is any policy where the policyholder has a Hong Kong identity card and an onshore customer is any customer who has a Hong Kong identity card, and (y) with respect to our Macau business, any policy where the policyholder is a resident of Macau and an onshore customer is any customer who is a resident of Macau. | |
| “Operating Embedded Value” or “Operating EV” | | |
consolidated EV of operating entities.
|
|
|
“Operating ROEV”
|
| | the ratio of EV Operating Profit to the opening Group EV (net of financing basis) for the relevant period. | |
|
“participating funds”
|
| | distinct portfolios where the policyholders have a contractual right to receive at the discretion of the insurer additional benefits based on factors such as the performance of the pool of assets held within the fund, as a supplement to any guaranteed benefits. The insurer may either have discretion as to the timing of the allocation of those benefits to participating policyholders or as to the timing and the amount of the additional benefits. | |
|
“participating products” or “participating business”
|
| | contracts of insurance where the policyholders have a contractual right to receive, at the discretion of the insurer, additional benefits based on factors such as investment performance, as a supplement to any guaranteed benefits. | |
|
“persistency”
|
| | the proportion of insurance policies remaining in force from month to month, as measured by the number of policies. | |
|
“protection ratio”
|
| | the protection ratio of each product is calculated by dividing the present value of mortality and morbidity benefits expected to be paid on account of the product by the present value of all customer benefits expected to be paid on account of the product. | |
|
“Protection VNB”
|
| | the aggregated protection VNB at product level, which is determined by protection ratio multiplied by VNB. | |
|
“RBC” or ‘‘Risk-based capital”
|
| | a method of measuring the minimum amount of capital appropriate for an insurance entity to support its overall business operations in consideration of its size and risk profile. | |
|
“reinsurance”
|
| | the practice whereby a reinsurer, in consideration of a premium paid to it, agrees to indemnify another party for part or all of the liabilities assumed by the reinsured party under an insurance contract, which the reinsured party has issued. | |
|
“renewal premiums”
|
| | premiums receivable in subsequent years of a multi-year insurance policy. | |
|
“Reorganization Conversion”
|
| | the conversion of ordinary shares, preference shares and convertible preference shares issued by FL and FGL into Class A ordinary shares in our company as part of Phase 2 of the Reorganization. | |
|
“reserves”
|
| | liability established to provide for future payments of claims and benefits to policyholders net of liability ceded to reinsurers. | |
|
“retrocession”
|
| | the reinsuring of reinsurance. | |
|
“riders”
|
| | a supplemental plan that can be attached to a base insurance policy, typically with payment of additional premium. Unless otherwise stated, riders include unit-deducting riders for which no premiums are received. The insurance coverage of unit-deducting riders is funded by deduction of units from account balances of underlying unit-linked and universal life contracts. | |
|
“SFO”
|
| | Securities and Futures Ordinance (Cap. 571 of the laws of Hong Kong). | |
|
“Share Split”
|
| | the share sub-division effected on August 20, 2021 whereby each of the then-authorized ordinary shares of our company, par value US$1.00 each, was divided into 100 ordinary shares, par value US$0.01 each. Following such share sub-division, PCGI Holdings Limited owned 2,162,950,800 ordinary shares in our company and surrendered for no consideration 1,514,065,560 ordinary shares to our company for cancellation, following which PCGI Holdings Limited owns 648,885,240 ordinary shares in our company. | |
|
“single premiums”
|
| | single premium policies of insurance are those that require only a single lump sum payment from the policyholder. | |
|
“SME”
|
| | small and medium enterprise. | |
|
“surrender”
|
| | the termination of a life insurance policy or annuity contract at the request of the policyholder after which the policyholder receives the cash surrender value, if any, of the contract. | |
|
“takaful”
|
| | insurance that is compliant with Islamic principles. | |
|
“tied agent”
|
| | a sales representative who sells the products of one company exclusively. | |
|
“TWPI” or “total weighted premium income”
|
| | total weighted premium income consists of 100% of renewal premiums, 100% of first year premiums and 10% of single premiums; it provides an indication of total premiums and the new business premiums that we have generated in the reporting period and that have the potential to generate profits for the Shareholders. | |
|
“Underlying APE”
|
| | the APE for the relevant periods excluding, as applicable, (A) for 2018, 2019 and 2020, the impact of (i) our acquisition of SCB Life in Thailand, PT Commonwealth Life in Indonesia, VCLI in Vietnam, HSBC Amanah Takaful in Malaysia, and the associated bancassurance partnerships with SCB, PT Bank Commonwealth, VCB and HSBC Amanah Malaysia Berhad, (ii) the COLI business in Japan, the sales of which have declined on account of the taxation rule changes in 2019, (iii) the employee benefits business in Singapore, which we discontinued in 2019, (iv) the one-off retrocession reinsurance with Swiss Re and FWD Reinsurance for a block of in-force life and health business in Japan in 2020 and (v) our partnership with TMB, which ended on December 31, 2020, and (B) for six months ended June 30, 2020 and June 30, 2021, (i) our acquisition of Commonwealth Life in Indonesia, VCLI in Vietnam and the associated bancassurance partnerships with PT Bank Commonwealth, and VCB, (ii) the COLI business in Japan, the sales of which have declined on account of the taxation rule changes in 2019, and (iii) our partnership with TMB, which ended on December 31, 2020. | |
|
“Underlying VNB”
|
| | the VNB for the relevant periods excluding, as applicable, (A) for 2018, 2019 and 2020, the effects of (i) our acquisition of SCB Life in Thailand, PT Commonwealth Life in Indonesia, VCLI in Vietnam, HSBC Amanah Takaful in Malaysia, and the associated bancassurance partnerships with SCB, PT Bank Commonwealth, VCB and HSBC Amanah Malaysia Berhad, (ii) the COLI business in Japan, the sales of which have declined on account of the taxation rule changes in 2019, (iii) the employee benefits business in Singapore, which we discontinued in 2019, (iv) the one-off retrocession reinsurance with Swiss Re and FWD Reinsurance for a block of in-force life and health business in Japan in 2020 and (v) our partnership with TMB, which ended on December 31, 2020, and (B) for six months ended June 30, 2020 and June 30, 2021, (i) our acquisition of Commonwealth Life in Indonesia, VCLI in Vietnam and the associated bancassurance partnerships with PT Bank Commonwealth, and VCB, (ii) the COLI business in Japan, the sales of which have declined on account of the taxation rule changes in 2019, and (iii) our partnership with TMB, which ended on December 31, 2020. | |
|
“Underlying VNB Margin”
|
| | Underlying VNB expressed as a percentage of Underlying APE for the relevant period. | |
|
“underwriting”
|
| | the process of examining, accepting or rejecting insurance risks, and classifying those accepted, in order to charge an appropriate premium for each accepted risk. | |
|
“Value of Business Acquired” or “VOBA”
|
| | VOBA in respect of a portfolio of long-term insurance and investment contracts acquired is recognized as an asset, calculated by discounting all future cash flows expected to be realized from the portfolio. VOBA is amortized over the estimated life of the contracts in the acquired portfolio on a systematic basis. The carrying value of VOBA is reviewed at least annually for impairment and any impairment is charged to the consolidated income statement. | |
|
“Value of New Business” or “VNB”
|
| | present value, measured at point of sale, of future net-of-tax profits on a local statutory basis less the corresponding cost of capital. VNB is calculated quarterly, based on assumptions applicable at the start of each quarter. | |
|
“VHIS”
|
| | Voluntary Health Insurance Scheme of Hong Kong. | |
|
“VNB Margin”
|
| | VNB expressed as a percentage of APE for the relevant period. | |
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Net premiums and fee income
|
| | | | 4,155 | | | | | | 5,127 | | | | | | 7,682 | | | | | | 3,564 | | | | | | 4,849 | | |
Investment return
|
| | | | 429 | | | | | | 955 | | | | | | 1,581 | | | | | | 260 | | | | | | 1,038 | | |
Other operating revenue
|
| | | | 104 | | | | | | 150 | | | | | | 224 | | | | | | 117 | | | | | | 134 | | |
Total revenue
|
| | | | 4,688 | | | | | | 6,232 | | | | | | 9,487 | | | | | | 3,941 | | | | | | 6,021 | | |
EXPENSE | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Insurance and investment contract benefits
|
| | | | 4,402 | | | | | | 5,362 | | | | | | 7,941 | | | | | | 3,507 | | | | | | 4,895 | | |
Insurance and investment contract benefits ceded
|
| | | | (639) | | | | | | (477) | | | | | | (646) | | | | | | (348) | | | | | | (413) | | |
Net insurance and investment contract benefits
|
| | | | 3,763 | | | | | | 4,885 | | | | | | 7,295 | | | | | | 3,159 | | | | | | 4,482 | | |
Commission and commission related expenses
|
| | | | 299 | | | | | | 416 | | | | | | 832 | | | | | | 380 | | | | | | 597 | | |
General expenses
|
| | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | | | | | 562 | | | | | | 564 | | |
Finance costs
|
| | | | 31 | | | | | | 109 | | | | | | 209 | | | | | | 106 | | | | | | 79 | | |
Other expenses
|
| | | | 104 | | | | | | 155 | | | | | | 157 | | | | | | 55 | | | | | | 91 | | |
Total expenses
|
| | | | 4,937 | | | | | | 6,575 | | | | | | 9,705 | | | | | | 4,262 | | | | | | 5,813 | | |
Share of profit/(loss) from associates and joint venture
|
| | | | 18 | | | | | | 7 | | | | | | (1) | | | | | | 3 | | | | | | (2) | | |
Profit/(loss) before tax from continuing operations
|
| | | | (231) | | | | | | (336) | | | | | | (219) | | | | | | (318) | | | | | | 206 | | |
Tax benefit/(expense) from continuing operations
|
| | | | 33 | | | | | | 20 | | | | | | (53) | | | | | | 1 | | | | | | (50) | | |
Profit/(loss) from continuing operations
|
| | | | (198) | | | | | | (316) | | | | | | (272) | | | | | | (317) | | | | | | 156 | | |
Profit/(loss) from discontinued operations, net of tax
|
| | | | 2 | | | | | | (16) | | | | | | 20 | | | | | | (1) | | | | | | 49 | | |
Net profit/(loss)
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | | | | | (318) | | | | | | 205 | | |
Other comprehensive income/(loss)
|
| | | | (286) | | | | | | 1,121 | | | | | | 512 | | | | | | 89 | | | | | | (1,471) | | |
Total comprehensive income/(loss)
|
| | | | (482) | | | | | | 789 | | | | | | 260 | | | | | | (229) | | | | | | (1,266) | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | |||||
Intangible assets
|
| | | | 1,671 | | | | | | 3,487 | | | | | | 3,531 | | | | | | 3,383 | | |
Assets other than financial investments(1)
|
| | | | 8,194 | | | | | | 10,867 | | | | | | 13,377 | | | | | | 13,672 | | |
Financial investments | | | | | | | | | | | | | | | | | | | | | |||||
Loans and deposits
|
| | | | 782 | | | | | | 1,701 | | | | | | 1,754 | | | | | | 1,686 | | |
Available for sale debt securities
|
| | | | 16,709 | | | | | | 30,837 | | | | | | 37,839 | | | | | | 36,283 | | |
At fair value through profit or loss:
|
| | | | | | | | | | | | | | | | | | | | |||||
Debt securities
|
| | | | 60 | | | | | | 109 | | | | | | 129 | | | | | | 100 | | |
Equity securities
|
| | | | 2,634 | | | | | | 4,111 | | | | | | 5,740 | | | | | | 7,276 | | |
Derivative financial instruments
|
| | | | 30 | | | | | | 193 | | | | | | 180 | | | | | | 148 | | |
Total financial investments
|
| | | | 20,215 | | | | | | 36,951 | | | | | | 45,642 | | | | | | 45,493 | | |
Total assets
|
| | | | 30,080 | | | | | | 51,305 | | | | | | 62,550 | | | | | | 62,548 | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | |||||
Insurance and investment contract liabilities
|
| | | | 23,047 | | | | | | 37,656 | | | | | | 45,481 | | | | | | 46,656 | | |
Deferred commission income
|
| | | | 538 | | | | | | 724 | | | | | | 990 | | | | | | 997 | | |
Financial liabilities(2)
|
| | | | 614 | | | | | | 4,113 | | | | | | 3,671 | | | | | | 3,613 | | |
Liabilities – other than above(3)
|
| | | | 1,858 | | | | | | 3,282 | | | | | | 4,183 | | | | | | 3,338 | | |
Total liabilities
|
| | | | 26,057 | | | | | | 45,775 | | | | | | 54,325 | | | | | | 54,604 | | |
Total equity(4)
|
| | | | 4,023 | | | | | | 5,530 | | | | | | 8,225 | | | | | | 7,944 | | |
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Net cash provided/(used in) by operating activities
|
| | | | 161 | | | | | | (32) | | | | | | (2) | | | | | | 428 | | | | | | (132) | | |
Net cash used in investing activities
|
| | | | (393) | | | | | | (3,351) | | | | | | (533) | | | | | | (543) | | | | | | (274) | | |
Net cash provided by financing activities
|
| | | | 325 | | | | | | 3,774 | | | | | | 1,353 | | | | | | 629 | | | | | | 276 | | |
Net increase/(decrease) in cash and cash equivalents
|
| | | | 93 | | | | | | 391 | | | | | | 818 | | | | | | 514 | | | | | | (130) | | |
Cash and cash equivalents at beginning of year/period
|
| | | | 1,395 | | | | | | 1,493 | | | | | | 1,911 | | | | | | 1,911 | | | | | | 2,730 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 5 | | | | | | 27 | | | | | | 11 | | | | | | (21) | | | | | | (57) | | |
Cash and cash equivalents at end of year/period
|
| | | | 1,493 | | | | | | 1,911 | | | | | | 2,740 | | | | | | 2,404 | | | | | | 2,543 | | |
| | |
For the Year Ended
December 31/ As of December 31, |
| |
For the Six Months Ended
June 30/ As of June 30, |
| |
2018-2020
CAGR |
| |
1H20-1H21
YoY |
| ||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||
Growth & Value Creation | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||
Annualized Premium Equivalent (APE)(1)
|
| | | | 1,055 | | | | | | 1,125 | | | | | | 1,692 | | | | | | 751 | | | | | | 751 | | | | | | 26.6% | | | | | | 0.0% | | |
Value of New Business (VNB)(2)
|
| | | | 648 | | | | | | 498 | | | | | | 617 | | | | | | 235 | | | | | | 346 | | | | | | (2.4)% | | | | | | 47.5% | | |
Operating Embedded Value (Operating EV)(2)
|
| | | | 4,251 | | | | | | 7,048 | | | | | | 8,479 | | | | | | N/A | | | | | | 8,669 | | | | | | 41.2% | | | | | | N/A | | |
Group Embedded Value (Group EV)(2)(3)
|
| | | | 2,666 | | | | | | 1,463 | | | | | | 3,761 | | | | | | N/A | | | | | | 4,526 | | | | | | 18.8% | | | | | | N/A | | |
Embedded Value Equity (EV Equity)(2)(3)
|
| | | | 4,275 | | | | | | 4,845 | | | | | | 7,110 | | | | | | N/A | | | | | | 7,902 | | | | | | 29.0% | | | | | | N/A | | |
Profitability & Scale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Total Weighted Premium Income (TWPI)(4)
|
| | | | 3,810 | | | | | | 4,655 | | | | | | 6,546 | | | | | | 3,266 | | | | | | 3,657 | | | | | | 31.1% | | | | | | 12.0% | | |
Adjusted Operating Profit Before Tax
|
| | | | 44 | | | | | | 47 | | | | | | 125 | | | | | | 68 | | | | | | 106 | | | | | | 68.5% | | | | | | 55.9% | | |
Net Profit / (Loss)(5)
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | | | | | (318) | | | | | | 205 | | | | | | N/A | | | | | | N/A | | |
Adjusted Net Profit / (Loss)(4)(5)
|
| | | | (196) | | | | | | (330) | | | | | | (216) | | | | | | (303) | | | | | | 205 | | | | | | N/A | | | | | | N/A | | |
Embedded Value (EV) Operating Profit(2)(6)
|
| | | | 822 | | | | | | 772 | | | | | | 1,010 | | | | | | 443 | | | | | | 513 | | | | | | 10.8% | | | | | | 15.8% | | |
Capital | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Net Underlying Free Surplus Generation (Net UFSG)(2)
|
| | | | (92) | | | | | | 182 | | | | | | 248 | | | | | | 19 | | | | | | (26) | | | | | | N/A | | | | | | N/A | | |
Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Growth & Value Creation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
VNB Margin(2)(7)
|
| | | | 61.4% | | | | | | 44.2% | | | | | | 36.5% | | | | | | 31.2% | | | | | | 46.1% | | | | | | N/A | | | | | | N/A | | |
Profitability & Scale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Expense Ratio(8)
|
| | | | 16.8% | | | | | | 17.8% | | | | | | 14.7% | | | | | | 13.9% | | | | | | 12.9% | | | | | | N/A | | | | | | N/A | | |
Operating ROEV(9)
|
| | | | 45.6% | | | | | | 29.0% | | | | | | 69.0% | | | | | | 69.8% | | | | | | 29.2% | | | | | | N/A | | | | | | N/A | | |
Pro forma Operating ROEV(9)(10)
|
| | | | N/A | | | | | | N/A | | | | | | % | | | | | | N/A | | | | | | % | | | | | | N/A | | | | | | N/A | | |
| | |
As of June 30, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro forma
|
| |
Pro forma
as adjusted |
| |||||||||
| | |
(US$ millions, except share and
per share data) |
| |||||||||||||||
Cash and cash equivalents
|
| | | | 2,541 | | | | | | [•] | | | | | | [•] | | |
Bank borrowings
|
| | | | 2,239 | | | | | | [•] | | | | | | [•] | | |
Medium-term notes
|
| | | | 324 | | | | | | [•] | | | | | | [•] | | |
Subordinated notes
|
| | | | 900 | | | | | | [•] | | | | | | [•] | | |
Total borrowings
|
| | | | 3,463 | | | | | | [•] | | | | | | [•] | | |
Share capital and share premium:
|
| | | | | | | | | | | | | | | | | | |
Ordinary shares, par value US$0.01 each
|
| | | | 4,645 | | | | | | [•] | | | | | | [•] | | |
Class A ordinary shares, par value US$0.01 per share; shares authorized and shares issued and outstanding pro forma; shares authorized and shares issued and outstanding pro forma as adjusted (unaudited)
|
| | | | — | | | | | | [•] | | | | | | [•] | | |
Class B ordinary shares, par value US$0.01 per share; shares authorized and shares issued and outstanding pro forma; shares authorized and shares issued and outstanding pro forma as adjusted (unaudited)
|
| | | | — | | | | | | [•] | | | | | | [•] | | |
Other reserves, Accumulated losses and Amounts reflected in other comprehensive income
|
| | | | (35) | | | | | | [•] | | | | | | [•] | | |
| | |
As of June 30, 2021
|
| |||||||||||||||
| | |
Actual
|
| |
Pro forma
|
| |
Pro forma
as adjusted |
| |||||||||
| | |
(US$ millions, except share and
per share data) |
| |||||||||||||||
Total equity attributable to shareholders of the Company
|
| | | | 4,610 | | | | | | [•] | | | | | | [•] | | |
Perpetual securities
|
| | | | 1,607 | | | | | | [•] | | | | | | [•] | | |
Non-controlling interests
|
| | | | 1,727 | | | | | | [•] | | | | | | [•] | | |
Total equity
|
| | | | 7,944 | | | | | | [•] | | | | | | [•] | | |
Total capitalization(1)
|
| | | | 11,407 | | | | | | [•] | | | | | | [•] | | |
| | |
Per
Ordinary Share |
| |
Per ADS
|
| ||||||
Assumed initial public offering price
|
| | | US$ | | | | | US$ | | | ||
Actual net tangible book value as of , 2021
|
| | | US$ | | | | | US$ | | | ||
Pro forma net tangible book value after giving effect to Phase 2 of our Reorganization and redesignation of ordinary shares into Class B ordinary shares
|
| | | | | | | | | | | | |
Pro forma As adjusted net tangible book value after giving effect to this offering and the concurrent private placement
|
| | | US$ | | | | | US$ | | | ||
Dilution in net tangible book value to new investors in this offering and the concurrent private placement
|
| | | US$ | | | | | US$ | | |
| | |
Class A Ordinary
Shares Total |
| |
Total Consideration
|
| |
Average
Price per Ordinary Share Equivalent |
| |
Average
Price per ADS Equivalent |
| |||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount (in thousands)
|
| |
Percent
|
| |||||||||||||||
Pre-IPO shareholders
|
| |
|
| | | | % | | | |
US$
|
| | | | % | | | |
US$
|
| |
US$
|
| |||
New investors
|
| | | | | | | | | % | | | |
US$
|
| | | | % | | | |
US$
|
| |
US$
|
| |
Total
|
| | | | | | | | | % | | | |
US$
|
| | | | % | | | | | | | | |
| | |
Year Ended December 31,
|
| |
Six Months
Ended June 30, |
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net premiums and fee income
|
| | | | 4,155 | | | | | | 5,127 | | | | | | 7,682 | | | | | | 3,564 | | | | | | 4,849 | | |
Investment return
|
| | | | 429 | | | | | | 955 | | | | | | 1,581 | | | | | | 260 | | | | | | 1,038 | | |
Other operating revenue
|
| | | | 104 | | | | | | 150 | | | | | | 224 | | | | | | 117 | | | | | | 134 | | |
Total revenue
|
| | | | 4,688 | | | | | | 6,232 | | | | | | 9,487 | | | | | | 3,941 | | | | | | 6,021 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance and investment contract benefits
|
| | | | 4,402 | | | | | | 5,362 | | | | | | 7,941 | | | | | | 3,507 | | | | | | 4,895 | | |
Insurance and investment contract benefits ceded
|
| | | | (639) | | | | | | (477) | | | | | | (646) | | | | | | (348) | | | | | | (413) | | |
Net insurance and investment contract benefits
|
| | | | 3,763 | | | | | | 4,885 | | | | | | 7,295 | | | | | | 3,159 | | | | | | 4,482 | | |
Commission and commission related expenses
|
| | | | 299 | | | | | | 416 | | | | | | 832 | | | | | | 380 | | | | | | 597 | | |
General expenses
|
| | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | | | | | 562 | | | | | | 564 | | |
Finance costs
|
| | | | 31 | | | | | | 109 | | | | | | 209 | | | | | | 106 | | | | | | 79 | | |
Other expenses
|
| | | | 104 | | | | | | 155 | | | | | | 157 | | | | | | 55 | | | | | | 91 | | |
Total expenses
|
| | | | 4,937 | | | | | | 6,575 | | | | | | 9,705 | | | | | | 4,262 | | | | | | 5,813 | | |
Share of profit/(loss) from associates and joint venture
|
| | | | 18 | | | | | | 7 | | | | | | (1) | | | | | | 3 | | | | | | (2) | | |
Profit/(loss) before tax from continuing operations
|
| | | | (231) | | | | | | (336) | | | | | | (219) | | | | | | (318) | | | | | | 206 | | |
Tax benefit/(expense) from continuing operations
|
| | | | 33 | | | | | | 20 | | | | | | (53) | | | | | | 1 | | | | | | (50) | | |
Profit/(loss) from continuing operations
|
| | | | (198) | | | | | | (316) | | | | | | (272) | | | | | | (317) | | | | | | 156 | | |
| | |
Year Ended December 31,
|
| |
Six Months
Ended June 30, |
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Profit/(loss) from discontinued operations, net of tax
|
| | | | 2 | | | | | | (16) | | | | | | 20 | | | | | | (1) | | | | | | 49 | | |
Net profit/(loss)
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | | | | | (318) | | | | | | 205 | | |
Other comprehensive income/(loss)
|
| | | | (286) | | | | | | 1,121 | | | | | | 512 | | | | | | 89 | | | | | | (1,471) | | |
Total comprehensive income/(loss)
|
| | | | (482) | | | | | | 789 | | | | | | 260 | | | | | | (229) | | | | | | (1,266) | | |
Total comprehensive income/(loss) attributable to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders of the company
|
| | | | (390) | | | | | | 569 | | | | | | 126 | | | | | | (198) | | | | | | (939) | | |
Perpetual securities
|
| | | | 26 | | | | | | 38 | | | | | | 65 | | | | | | 32 | | | | | | 32 | | |
Non-controlling interests
|
| | | | (118) | | | | | | 182 | | | | | | 69 | | | | | | (63) | | | | | | (359) | | |
Net profit/(loss) attributable to shareholders of the
Company |
| | | | (169) | | | | | | (278) | | | | | | (243) | | | | | | 267 | | | | | | 128 | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(audited)
|
| |
(unaudited)
|
| ||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Intangible assets
|
| | | | 1,671 | | | | | | 3,487 | | | | | | 3,531 | | | | | | 3,383 | | |
Assets other than financial investments(1)
|
| | | | 8,194 | | | | | | 10,867 | | | | | | 13,377 | | | | | | 13,672 | | |
Financial investments | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and deposits
|
| | | | 782 | | | | | | 1,701 | | | | | | 1,754 | | | | | | 1,686 | | |
Available for sale debt securities
|
| | | | 16,709 | | | | | | 30,837 | | | | | | 37,839 | | | | | | 36,283 | | |
At fair value through profit or loss:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 60 | | | | | | 109 | | | | | | 129 | | | | | | 100 | | |
Equity securities
|
| | | | 2,634 | | | | | | 4,111 | | | | | | 5,740 | | | | | | 7,276 | | |
Derivative financial instruments
|
| | | | 30 | | | | | | 193 | | | | | | 180 | | | | | | 148 | | |
Total financial investments
|
| | | | 20,215 | | | | | | 36,951 | | | | | | 45,642 | | | | | | 45,493 | | |
Total assets
|
| | | | 30,080 | | | | | | 51,305 | | | | | | 62,550 | | | | | | 62,548 | | |
Insurance and investment contract liabilities
|
| | | | 23,047 | | | | | | 37,656 | | | | | | 45,481 | | | | | | 46,656 | | |
Deferred commission income
|
| | | | 538 | | | | | | 724 | | | | | | 990 | | | | | | 997 | | |
Financial liabilities(2)
|
| | | | 614 | | | | | | 4,113 | | | | | | 3,671 | | | | | | 3,613 | | |
Liabilities – other than above(3)
|
| | | | 1,858 | | | | | | 3,282 | | | | | | 4,183 | | | | | | 3,338 | | |
Total liabilities
|
| | | | 26,057 | | | | | | 45,775 | | | | | | 54,325 | | | | | | 54,604 | | |
Equity attributable to: | | | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | 2,315 | | | | | | 2,918 | | | | | | 4,898 | | | | | | 4,610 | | |
Perpetual securities
|
| | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | | | | | 1,607 | | |
Non-controlling interests
|
| | | | 711 | | | | | | 1,004 | | | | | | 1,720 | | | | | | 1,727 | | |
Total equity
|
| | | | 4,023 | | | | | | 5,530 | | | | | | 8,225 | | | | | | 7,944 | | |
| | |
Year Ended December 31,
|
| |
Six Months Ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(audited)
|
| |
(Unaudited)
|
| ||||||||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Net cash provided by/(used in) operating activities
|
| | | | 161 | | | | | | (32) | | | | | | (2) | | | | | | 428 | | | | | | (132) | | |
Net cash used in investing activities
|
| | | | (393) | | | | | | (3,351) | | | | | | (533) | | | | | | (543) | | | | | | (274) | | |
Net cash provided by financing activities
|
| | | | 325 | | | | | | 3,774 | | | | | | 1,353 | | | | | | 629 | | | | | | 276 | | |
Net increase/(decrease) in cash and cash equivalents
|
| | | | 93 | | | | | | 391 | | | | | | 818 | | | | | | 514 | | | | | | (130) | | |
Cash and cash equivalents at beginning of year/period
|
| | | | 1,395 | | | | | | 1,493 | | | | | | 1,911 | | | | | | 1,911 | | | | | | 2,730 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 5 | | | | | | 27 | | | | | | 11 | | | | | | (21) | | | | | | (57) | | |
Cash and cash equivalents at end of year/period
|
| | | | 1,493 | | | | | | 1,911 | | | | | | 2,740 | | | | | | 2,404 | | | | | | 2,543 | | |
| | |
For the Year Ended
December 31/ As of December 31, |
| |
For the Six Months
Ended June 30/ As of June 30, |
| |
2018-2020
CAGR |
| |
1H20-1H21
YoY |
| ||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||||||||||||||
| | |
(US$ millions except for percentages)
|
| | ||||||||||||||||||||||||||||||||||||||
Growth & Value Creation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Annualized Premium Equivalent (APE)(1)
|
| | | | 1,055 | | | | | | 1,125 | | | | | | 1,692 | | | | | | 751 | | | | | | 751 | | | | | | 26.6% | | | | | | 0.0% | | |
Value of New Business (VNB)(2)
|
| | | | 648 | | | | | | 498 | | | | | | 617 | | | | | | 235 | | | | | | 346 | | | | | | (2.4)% | | | | | | 47.5% | | |
Operating Embedded Value (Operating EV)(2)
|
| | | | 4,251 | | | | | | 7,048 | | | | | | 8,479 | | | | | | N/A | | | | | | 8,669 | | | | | | 41.2% | | | | | | N/A | | |
Group Embedded Value (Group EV)(2)(3)
|
| | | | 2,666 | | | | | | 1,463 | | | | | | 3,761 | | | | | | N/A | | | | | | 4,526 | | | | | | 18.8% | | | | | | N/A | | |
Embedded Value Equity (EV Equity)(2)(3)
|
| | | | 4,275 | | | | | | 4,845 | | | | | | 7,110 | | | | | | N/A | | | | | | 7,902 | | | | | | 29.0% | | | | | | N/A | | |
Profitability & Scale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Total Weighted Premium Income (TWPI)(4)
|
| | | | 3,810 | | | | | | 4,655 | | | | | | 6,546 | | | | | | 3,266 | | | | | | 3,657 | | | | | | 31.1% | | | | | | 12.0% | | |
Adjusted Operating Profit Before Tax
|
| | | | 44 | | | | | | 47 | | | | | | 125 | | | | | | 68 | | | | | | 106 | | | | | | 68.5% | | | | | | 55.9% | | |
Net Profit/(Loss)(5)
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | | | | | (318) | | | | | | 205 | | | | | | N/A | | | | | | N/A | | |
Adjusted Net Profit/(loss)(4)(5)
|
| | | | (196) | | | | | | (330) | | | | | | (216) | | | | | | (303) | | | | | | 205 | | | | | | N/A | | | | | | N/A | | |
Embedded Value (EV) Operating Profit(2)(6)
|
| | | | 822 | | | | | | 772 | | | | | | 1,010 | | | | | | 443 | | | | | | 513 | | | | | | 10.8% | | | | | | 15.8% | | |
Capital | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Net Underlying Free Surplus Generation (Net UFSG)(2)
|
| | | | (92) | | | | | | 182 | | | | | | 248 | | | | | | 19 | | | | | | (26) | | | | | | N/A | | | | | | N/A | | |
Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Growth & Value Creation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
VNB Margin(2)(7)
|
| | | | 61.4% | | | | | | 44.2% | | | | | | 36.5% | | | | | | 31.2% | | | | | | 46.1% | | | | | | N/A | | | | | | N/A | | |
Profitability & Scale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Expense Ratio(8)
|
| | | | 16.8% | | | | | | 17.8% | | | | | | 14.7% | | | | | | 13.9% | | | | | | 12.9% | | | | | | N/A | | | | | | N/A | | |
Operating ROEV(9)
|
| | | | 45.6% | | | | | | 29.0% | | | | | | 69.0% | | | | | | 69.8% | | | | | | 29.2% | | | | | | N/A | | | | | | N/A | | |
Pro forma Operating ROEV(9)(10)
|
| | | | N/A | | | | | | N/A | | | | | | – % | | | | | | N/A | | | | | | | | | | | | N/A | | | | | | N/A | | |
| | |
For the Year ended December 31/
As of December 31, |
| |
For the Six Months ended June 30/
As of June 30, |
| |
2018-2020
CAGR |
| |
1H20-1H21
YoY |
| ||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| | ||||||||||||||||||||||||||||||||||||||
Growth & Value Creation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Annualized Premium Equivalent (APE)(1)
|
| | | | 1,055 | | | | | | 1,125 | | | | | | 1,692 | | | | | | 751 | | | | | | 751 | | | | | | 26.6% | | | | | | 0.0% | | |
Value of New Business (VNB)(2)
|
| | | | 648 | | | | | | 498 | | | | | | 617 | | | | | | 235 | | | | | | 346 | | | | | | (2.4)% | | | | | | 47.5% | | |
Operating Embedded Value (Operating EV)(2)
|
| | | | 4,251 | | | | | | 7,048 | | | | | | 8,479 | | | | | | N/A | | | | | | 8,669 | | | | | | 41.2% | | | | | | N/A | | |
Group Embedded Value (Group EV)(2)(3)
|
| | | | 2,666 | | | | | | 1,463 | | | | | | 3,761 | | | | | | N/A | | | | | | 4,526 | | | | | | 18.8% | | | | | | N/A | | |
| | |
For the Year ended December
31/ As of December 31, |
| |
For the Six Months ended June
30/ As of June 30, |
| |
2018-2020
CAGR |
| |
1H20-1H21
YoY |
| ||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| | ||||||||||||||||||||||||||||||||||||||
Embedded Value Equity (EV Equity)(2)(3)
|
| | | | 4,275 | | | | | | 4,845 | | | | | | 7,110 | | | | | | N/A | | | | | | 7,902 | | | | | | 29.0% | | | | | | N/A | | |
Profitability & Scale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Total Weighted Premium Income (TWPI)(4)
|
| | | | 3,810 | | | | | | 4,655 | | | | | | 6,546 | | | | | | 3,266 | | | | | | 3,657 | | | | | | 31.1% | | | | | | 12.0% | | |
Adjusted Operating Profit Before Tax(4)
|
| | | | 44 | | | | | | 47 | | | | | | 125 | | | | | | 68 | | | | | | 106 | | | | | | 68.5% | | | | | | 55.9% | | |
Net Profit / (Loss)(5)
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | | | | | (318) | | | | | | 205 | | | | | | N/A | | | | | | N/A | | |
Adjusted Net Profit / (Loss)(5)
|
| | | | (196) | | | | | | (330) | | | | | | (216) | | | | | | (303) | | | | | | 205 | | | | | | N/A | | | | | | N/A | | |
Embedded Value (EV) Operating Profit(2)(6)
|
| | | | 822 | | | | | | 772 | | | | | | 1,010 | | | | | | 443 | | | | | | 513 | | | | | | 10.8% | | | | | | 15.8% | | |
Capital | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Net Underlying Free Surplus Generation (Net UFSG)(2)
|
| | | | (92) | | | | | | 182 | | | | | | 248 | | | | | | 19 | | | | | | (26) | | | | | | N/A | | | | | | N/A | | |
Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Growth & Value Creation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
VNB Margin(2)(7)
|
| | | | 61.4% | | | | | | 44.2% | | | | | | 36.5% | | | | | | 31.2% | | | | | | 46.1% | | | | | | N/A | | | | | | N/A | | |
Profitability & Scale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Expense Ratio(8)
|
| | | | 16.8% | | | | | | 17.8% | | | | | | 14.7% | | | | | | 13.9% | | | | | | 12.9% | | | | | | N/A | | | | | | N/A | | |
Operating ROEV(9)
|
| | | | 45.6% | | | | | | 29.0% | | | | | | 69.0% | | | | | | 69.8% | | | | | | 29.2% | | | | | | N/A | | | | | | N/A | | |
Pro forma Operating ROEV(9)(10)
|
| | | | N/A | | | | | | N/A | | | | | | – % | | | | | | N/A | | | | | | | | | | | | N/A | | | | | | N/A | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Hong Kong (and Macau)
|
| | | | 367 | | | | | | 431 | | | | | | 372 | | | | | | 167 | | | | | | 252 | | |
Thailand (and Cambodia)
|
| | | | 207 | | | | | | 266 | | | | | | 616 | | | | | | 358 | | | | | | 269 | | |
Japan
|
| | | | 367 | | | | | | 270 | | | | | | 507 | | | | | | 140 | | | | | | 106 | | |
Emerging Markets
|
| | | | 114 | | | | | | 157 | | | | | | 197 | | | | | | 85 | | | | | | 123 | | |
Total APE
|
| | | | 1,055 | | | | | | 1,125 | | | | | | 1,692 | | | | | | 751 | | | | | | 751 | | |
| | |
Year ended December 31
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
APE | | | | | 1,055 | | | | | | 1,125 | | | | | | 1,692 | | | | | | 751 | | | | | | 751 | | |
Less: Acquisitions/Partnerships and Discontinued Businesses | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Thailand – SCB(1)
|
| | | | — | | | | | | 57 | | | | | | 434 | | | | | | N/A | | | | | | N/A | | |
Thailand – TMB
|
| | | | 150 | | | | | | 139 | | | | | | 86 | | | | | | 46 | | | | | | — | | |
Emerging Markets(2)
|
| | | | 7 | | | | | | 23 | | | | | | 49 | | | | | | 6 | | | | | | 23 | | |
Less: Japan – COLI
|
| | | | 320 | | | | | | 176 | | | | | | 149 | | | | | | 85 | | | | | | 41 | | |
Less: Japan – Retrocession Reinsurance
|
| | | | — | | | | | | — | | | | | | 236 | | | | | | — | | | | | | — | | |
Underlying APE
|
| | | | 578 | | | | | | 730 | | | | | | 739 | | | | | | 614 | | | | | | 686 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Hong Kong (and Macau)
|
| | | | 130 | | | | | | 170 | | | | | | 167 | | | | | | 63 | | | | | | 98 | | |
Thailand (and Cambodia)
|
| | | | 72 | | | | | | 65 | | | | | | 183 | | | | | | 87 | | | | | | 125 | | |
Japan
|
| | | | 408 | | | | | | 210 | | | | | | 188 | | | | | | 53 | | | | | | 69 | | |
Emerging Markets
|
| | | | 38 | | | | | | 52 | | | | | | 79 | | | | | | 32 | | | | | | 54 | | |
Total VNB
|
| | | | 648 | | | | | | 498 | | | | | | 617 | | | | | | 235 | | | | | | 346 | | |
VNB Margin
|
| | | | 61.4% | | | | | | 44.2% | | | | | | 36.5% | | | | | | 31.2% | | | | | | 46.1% | | |
| | |
Year ended December 31
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||
VNB | | | | | 648 | | | | | | 498 | | | | | | 617 | | | | | | 235 | | | | | | 346 | | |
Less: Acquisitions/Partnerships and Discontinued Businesses
|
| | | | | | | | | | | | | | | | | | | | | ||||||||||
Thailand – SCB(1)
|
| | | | — | | | | | | 11 | | | | | | 127 | | | | | | N/A | | | | | | N/A | | |
Thailand – TMB
|
| | | | 56 | | | | | | 34 | | | | | | 20 | | | | | | 8 | | | | | | — | | |
Emerging Markets(2)
|
| | | | 2 | | | | | | 3 | | | | | | 19 | | | | | | 2 | | | | | | 9 | | |
Less: Japan – COLI
|
| | | | 363 | | | | | | 134 | | | | | | 38 | | | | | | 17 | | | | | | 14 | | |
Less: Japan – Retrocession Reinsurance
|
| | | | — | | | | | | — | | | | | | 56 | | | | | | — | | | | | | — | | |
Underlying VNB
|
| | | | 227 | | | | | | 316 | | | | | | 358 | | | | | | 207 | | | | | | 323 | | |
Underlying VNB Margin
|
| | | | 39.2% | | | | | | 43.2% | | | | | | 48.5% | | | | | | 33.7% | | | | | | 47.1% | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Operating EV
|
| | | | 4,251 | | | | | | 7,048 | | | | | | 8,479 | | | | | | 8,669 | | |
Group EV(1)
|
| | | | 2,666 | | | | | | 1,463 | | | | | | 3,761 | | | | | | 4,526 | | |
EV Equity(1)
|
| | | | 4,275 | | | | | | 4,845 | | | | | | 7,110 | | | | | | 7,902 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Hong Kong (and Macau)
|
| | | | 1,183 | | | | | | 1,443 | | | | | | 1,730 | | | | | | 767 | | | | | | 950 | | |
Thailand (and Cambodia)
|
| | | | 795 | | | | | | 1,140 | | | | | | 2,255 | | | | | | 1,190 | | | | | | 1,248 | | |
Japan
|
| | | | 1,655 | | | | | | 1,801 | | | | | | 2,131 | | | | | | 1,141 | | | | | | 1,174 | | |
Emerging Markets
|
| | | | 177 | | | | | | 271 | | | | | | 430 | | | | | | 168 | | | | | | 285 | | |
Total TWPI
|
| | | | 3,810 | | | | | | 4,655 | | | | | | 6,546 | | | | | | 3,266 | | | | | | 3,657 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Hong Kong (and Macau)
|
| | | | 130 | | | | | | 128 | | | | | | 141 | | | | | | 58 | | | | | | 85 | | |
Thailand (and Cambodia)
|
| | | | 48 | | | | | | 41 | | | | | | 86 | | | | | | 43 | | | | | | 64 | | |
Japan
|
| | | | 56 | | | | | | 71 | | | | | | 100 | | | | | | 54 | | | | | | 69 | | |
Emerging Markets
|
| | | | (81) | | | | | | (98) | | | | | | (87) | | | | | | (41) | | | | | | (52) | | |
Corporate and Others
|
| | | | (109) | | | | | | (95) | | | | | | (115) | | | | | | (46) | | | | | | (60) | | |
Total | | | | | 44 | | | | | | 47 | | | | | | 125 | | | | | | 68 | | | | | | 106 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Net profit/(loss)
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | | | | | (318) | | | | | | 205 | | |
Less: | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Net loss of the Company and Financing Entities
|
| | | | — | | | | |
|
2
|
| | | |
|
36
|
| | | |
|
15
|
| | | | | — | | |
Interest income
|
| | | | — | | | | | | (1) | | | | | | (1) | | | | | | (1) | | | | | | — | | |
General expenses
|
| | | | — | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | — | | |
Finance costs
|
| | | | — | | | | | | 2 | | | | | | 36 | | | | | | 15 | | | | | | — | | |
Adjusted net profit/(loss)(1)
|
| | | | (196) | | | | | | (330) | | | | | | (216) | | | | | | (303) | | | | | | 205 | | |
| | |
For the Year ended December 31/
As of December 31, |
| |
For the Six Months ended
June 30/ As of June 30, |
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
UFSG
|
| | | | 146 | | | | | | 597 | | | | | | 654 | | | | | | 237 | | | | | | 223 | | |
Surplus used to fund new business
|
| | | | (238) | | | | | | (415) | | | | | | (406) | | | | | | (217) | | | | | | (249) | | |
Net UFSG
|
| | | | (92) | | | | | | 182 | | | | | | 248 | | | | | | 19 | | | | | | (26) | | |
One-off opening adjustments and non-economic assumption changes
|
| | | | (8) | | | | | | (388) | | | | | | (410) | | | | | | (82) | | | | | | (94) | | |
Expense overruns
|
| | | | 202 | | | | | | 308 | | | | | | 297 | | | | | | 163 | | | | | | 123 | | |
Adjusted Net UFSG
|
| | | | 102 | | | | | | 103 | | | | | | 135 | | | | | | 101 | | | | | | 3 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
Hong Kong (and Macau)
|
| | | | 10.4% | | | | | | 13.4% | | | | | | 11.3% | | | | | | 10.7% | | | | | | 10.6% | | |
Thailand (and Cambodia)
|
| | | | 9.5% | | | | | | 11.2% | | | | | | 9.8% | | | | | | 8.9% | | | | | | 8.6% | | |
Japan
|
| | | | 13.7% | | | | | | 14.5% | | | | | | 12.4% | | | | | | 12.1% | | | | | | 9.8% | | |
Emerging Markets
|
| | | | 63.3% | | | | | | 53.4% | | | | | | 40.6% | | | | | | 42.6% | | | | | | 36.9% | | |
Total | | | | | 16.8% | | | | | | 17.8% | | | | | | 14.7% | | | | | | 13.9% | | | | | | 12.9% | | |
| | |
For the Year ended December 31/
As of December 31, |
| |
For the Six Months ended
June 30/ As of June 30, |
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
Operating ROEV
|
| | | | 45.6% | | | | | | 29.0% | | | | | | 69.0% | | | | | | 69.8% | | | | | | 29.2% | | |
Pro forma Operating ROEV(1)
|
| | | | — | | | | | | — | | | | | | % | | | | | | — | | | | | | % | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Revenue | | | | | | | |||||||||||||||||||||||||
Premiums and fee income
|
| | | | 5,053 | | | | | | 6,047 | | | | | | 8,776 | | | | | | 4,165 | | | | | | 5,468 | | |
Premiums ceded to reinsurers
|
| | | | (898) | | | | | | (920) | | | | | | (1,094) | | | | | | (601) | | | | | | (619) | | |
Net premiums and fee income
|
| | | | 4,155 | | | | | | 5,127 | | | | | | 7,682 | | | | | | 3,564 | | | | | | 4,849 | | |
Investment return
|
| | | | 429 | | | | | | 955 | | | | | | 1,581 | | | | | | 260 | | | | | | 1,038 | | |
Other operating revenue
|
| | | | 104 | | | | | | 150 | | | | | | 224 | | | | | | 117 | | | | | | 134 | | |
Total revenue
|
| | | | 4,688 | | | | | | 6,232 | | | | | | 9,487 | | | | | | 3,941 | | | | | | 6,021 | | |
Expenses | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Insurance and investment contract benefits
|
| | | | 4,402 | | | | | | 5,362 | | | | | | 7,941 | | | | | | 3,507 | | | | | | 4,895 | | |
Insurance and investment contract benefits ceded
|
| | | | (639) | | | | | | (477) | | | | | | (646) | | | | | | (348) | | | | | | (413) | | |
Net insurance and investment contract benefits
|
| | | | 3,763 | | | | | | 4,885 | | | | | | 7,295 | | | | | | 3,159 | | | | | | 4,482 | | |
Commission and commission related expenses
|
| | | | 299 | | | | | | 416 | | | | | | 832 | | | | | | 380 | | | | | | 597 | | |
General expenses
|
| | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | | | | | 562 | | | | | | 564 | | |
Finance costs
|
| | | | 31 | | | | | | 109 | | | | | | 209 | | | | | | 106 | | | | | | 79 | | |
Other expenses
|
| | | | 104 | | | | | | 155 | | | | | | 157 | | | | | | 55 | | | | | | 91 | | |
Total expenses
|
| | | | 4,937 | | | | | | 6,575 | | | | | | 9,705 | | | | | | 4,262 | | | | | | 5,813 | | |
Share of profit/(loss) from associates and joint venture
|
| | | | 18 | | | | | | 7 | | | | | | (1) | | | | | | 3 | | | | | | (2) | | |
Profit/(loss) before tax from continuing operations
|
| | | | (231) | | | | | | (336) | | | | | | (219) | | | | | | (318) | | | | | | 206 | | |
Tax benefit/(expense) from continuing operations
|
| | | | 33 | | | | | | 20 | | | | | | (53) | | | | | | 1 | | | | | | (50) | | |
Profit/(loss) from continuing operations
|
| | | | (198) | | | | | | (316) | | | | | | (272) | | | | | | (317) | | | | | | 156 | | |
Profit/(loss) from discontinued operations, net of tax
|
| | | | 2 | | | | | | (16) | | | | | | 20 | | | | | | (1) | | | | | | 49 | | |
Net profit/(loss)
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | | | | | (318) | | | | | | 205 | | |
Other comprehensive income/(loss)
|
| | | | (286) | | | | | | 1,121 | | | | | | 512 | | | | | | 89 | | | | | | (1,471) | | |
Total comprehensive income/(loss)
|
| | | | (482) | | | | | | 789 | | | | | | 260 | | | | | | (229) | | | | | | (1,266) | | |
Total comprehensive income/(loss) attributable to:
|
| | | | | | | | | | | | | | | | | | | | | ||||||||||
Shareholders of the Company
|
| | | | (390) | | | | | | 569 | | | | | | 126 | | | | | | (198) | | | | | | (939) | | |
Perpetual securities
|
| | | | 26 | | | | | | 38 | | | | | | 65 | | | | | | 32 | | | | | | 32 | | |
Non-controlling interests
|
| | | | (118) | | | | | | 182 | | | | | | 69 | | | | | | (63) | | | | | | (359) | | |
Net profit/(loss) attributable to Shareholders of the Company
|
| | | | (169) | | | | | | (278) | | | | | | (243) | | | | | | (267) | | | | | | 128 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Revenue | | | | | | | |||||||||||||||||||||||||
Premiums and fee income
|
| | | | 5,053 | | | | | | 6,047 | | | | | | 8,776 | | | | | | 4,165 | | | | | | 5,468 | | |
Premiums ceded to reinsurers
|
| | | | (898) | | | | | | (920) | | | | | | (1,094) | | | | | | (601) | | | | | | (619) | | |
Net premiums and fee income
|
| | | | 4,155 | | | | | | 5,127 | | | | | | 7,682 | | | | | | 3,564 | | | | | | 4,849 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Interest income
|
| | | | 478 | | | | | | 619 | | | | | | 867 | | | | | | 402 | | | | | | 465 | | |
Dividend income
|
| | | | 80 | | | | | | 82 | | | | | | 140 | | | | | | 48 | | | | | | 128 | | |
Rental income(1)
|
| | | | 8 | | | | | | 21 | | | | | | 25 | | | | | | 12 | | | | | | 13 | | |
Investment income
|
| | | | 566 | | | | | | 722 | | | | | | 1,032 | | | | | | 462 | | | | | | 606 | | |
Net realized gains/(losses) from debt securities
|
| | | | (19) | | | | | | 65 | | | | | | 217 | | | | | | 87 | | | | | | 68 | | |
Impairment of available-for-sale financial assets
|
| | | | — | | | | | | (3) | | | | | | (7) | | | | | | (4) | | | | | | — | | |
Net gains/(losses) of available-for-sale financial assets reflected in the consolidated income statement
|
| | | | (19) | | | | | | 62 | | | | | | 210 | | | | | | 83 | | | | | | 68 | | |
Net gains/(losses) of debt securities
|
| | | | (2) | | | | | | 7 | | | | | | 32 | | | | | | (46) | | | | | | (2) | | |
Net gains/(losses) of equity securities
|
| | | | (118) | | | | | | 278 | | | | | | 316 | | | | | | (194) | | | | | | 471 | | |
Net fair value movement on derivatives
|
| | | | 24 | | | | | | (81) | | | | | | 9 | | | | | | 45 | | | | | | (403) | | |
Net gains/(losses) in respect of financial instruments at fair value through profit or loss
|
| | | | (96) | | | | | | 204 | | | | | | 357 | | | | | | (195) | | | | | | 66 | | |
Net fair value movement of investment property
|
| | | | 1 | | | | | | 6 | | | | | | (8) | | | | | | (7) | | | | | | — | | |
Net foreign exchange gains/(losses)
|
| | | | (26) | | | | | | (40) | | | | | | (33) | | | | | | (84) | | | | | | 296 | | |
Other net realized gains
|
| | | | 3 | | | | | | 1 | | | | | | 23 | | | | | | 1 | | | | | | 2 | | |
Investment experience
|
| | | | (137) | | | | | | 233 | | | | | | 549 | | | | | | (202) | | | | | | 432 | | |
Investment return
|
| | | | 429 | | | | | | 955 | | | | | | 1,581 | | | | | | 260 | | | | | | 1,038 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Other
operating revenue |
| |
%
|
| |
Other
operating revenue |
| |
%
|
| |
Other
operating revenue |
| |
%
|
| |
Other
operating revenue |
| |
%
|
| |
Other
operating revenue |
| |
%
|
| ||||||||||||||||||||||||||||||
Commission
from reinsurance arrangements |
| | | | 98 | | | | | | 94.2 | | | | | | 134 | | | | | | 89.3 | | | | | | 194 | | | | | | 86.6 | | | | | | 96 | | | | | | 82.1 | | | | | | 123 | | | | | | 91.7 | | |
Asset
management fees |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10 | | | | | | 4.5 | | | | | | 3 | | | | | | 2.6 | | | | | | 8 | | | | | | 6.2 | | |
Other
|
| | | | 6 | | | | | | 5.8 | | | | | | 16 | | | | | | 10.7 | | | | | | 20 | | | | | | 8.9 | | | | | | 18 | | | | | | 15.3 | | | | | | 3 | | | | | | 2.1 | | |
Other operating revenue
|
| | | | 104 | | | | | | 100.0 | | | | | | 150 | | | | | | 100.0 | | | | | | 224 | | | | | | 100.0 | | | | | | 117 | | | | | | 100.0 | | | | | | 134 | | | | | | 100.0 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Participating life
|
| | | | 1,206 | | | | | | 1,574 | | | | | | 2,588 | | | | | | 815 | | | | | | 2,093 | | |
Non-participating life
|
| | | | 1,769 | | | | | | 2,465 | | | | | | 3,761 | | | | | | 1,963 | | | | | | 1,995 | | |
Critical illness, term life, medical and riders
|
| | | | 523 | | | | | | 607 | | | | | | 1,109 | | | | | | 351 | | | | | | 695 | | |
Unit-linked
|
| | | | 354 | | | | | | 592 | | | | | | 850 | | | | | | 191 | | | | | | 503 | | |
Group
|
| | | | 198 | | | | | | 229 | | | | | | 396 | | | | | | 179 | | | | | | 233 | | |
COLI
|
| | | | 597 | | | | | | 684 | | | | | | 708 | | | | | | 408 | | | | | | 469 | | |
Others(1) | | | | | 41 | | | | | | 81 | | | | | | 75 | | | | | | 34 | | | | | | 33 | | |
Total revenue
|
| | | | 4,688 | | | | | | 6,232 | | | | | | 9,487 | | | | | | 3,941 | | | | | | 6,021 | | |
| | |
Year ended December 31
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Insurance contract benefits
|
| | | | 1,546 | | | | | | 2,200 | | | | | | 3,301 | | | | | | 1,502 | | | | | | 1,812 | | |
Change in insurance contract liabilities
|
| | | | 2,766 | | | | | | 3,140 | | | | | | 4,596 | | | | | | 1,993 | | | | | | 3,073 | | |
Investment contract benefits
|
| | | | 90 | | | | | | 22 | | | | | | 44 | | | | | | 12 | | | | | | 10 | | |
Insurance and investment contract benefits
|
| | | | 4,402 | | | | | | 5,362 | | | | | | 7,941 | | | | | | 3,507 | | | | | | 4,895 | | |
Insurance and investment contract benefits ceded
|
| | | | (639) | | | | | | (477) | | | | | | (646) | | | | | | (348) | | | | | | (413) | | |
Net insurance and investment contract benefits
|
| | | | 3,763 | | | | | | 4,885 | | | | | | 7,295 | | | | | | 3,159 | | | | | | 4,482 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Participating life
|
| | | | 1,045 | | | | | | 1,290 | | | | | | 2,033 | | | | | | 654 | | | | | | 1,701 | | |
Non-participating life
|
| | | | 1,558 | | | | | | 2,063 | | | | | | 3,184 | | | | | | 1,795 | | | | | | 1,580 | | |
Critical illness, term life, medical and riders
|
| | | | 333 | | | | | | 383 | | | | | | 669 | | | | | | 231 | | | | | | 408 | | |
Unit-linked
|
| | | | 300 | | | | | | 558 | | | | | | 782 | | | | | | 129 | | | | | | 442 | | |
Group
|
| | | | 117 | | | | | | 105 | | | | | | 128 | | | | | | 66 | | | | | | 86 | | |
COLI
|
| | | | 391 | | | | | | 444 | | | | | | 457 | | | | | | 266 | | | | | | 258 | | |
Others(1) | | | | | 19 | | | | | | 42 | | | | | | 42 | | | | | | 18 | | | | | | 7 | | |
Total net insurance and investment contract benefits
|
| | | | 3,763 | | | | | | 4,885 | | | | | | 7,295 | | | | | | 3,159 | | | | | | 4,482 | | |
| | |
Year ended December 31
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Commission and other acquisition expenses incurred
|
| | | | 1,072 | | | | | | 1,249 | | | | | | 1,525 | | | | | | 722 | | | | | | 842 | | |
Deferral and amortization of acquisition expenses
|
| | | | (773) | | | | | | (833) | | | | | | (693) | | | | | | (342) | | | | | | (245) | | |
Commission and commission related expenses
|
| | | | 299 | | | | | | 416 | | | | | | 832 | | | | | | 380 | | | | | | 597 | | |
| | |
Year ended December 31
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Employee benefits expenses
|
| | | | 360 | | | | | | 439 | | | | | | 624 | | | | | | 277 | | | | | | 287 | | |
Depreciation
|
| | | | 19 | | | | | | 70 | | | | | | 78 | | | | | | 38 | | | | | | 39 | | |
Amortization
|
| | | | 15 | | | | | | 24 | | | | | | 42 | | | | | | 19 | | | | | | 14 | | |
Marketing and advertising
|
| | | | 56 | | | | | | 83 | | | | | | 55 | | | | | | 23 | | | | | | 20 | | |
Professional service fees
|
| | | | 60 | | | | | | 114 | | | | | | 165 | | | | | | 72 | | | | | | 64 | | |
Information technology expenses
|
| | | | 82 | | | | | | 100 | | | | | | 121 | | | | | | 57 | | | | | | 63 | | |
Operating lease rentals
|
| | | | 34 | | | | | | 7 | | | | | | 6 | | | | | | 3 | | | | | | 4 | | |
Other general expenses(1)
|
| | | | 114 | | | | | | 173 | | | | | | 121 | | | | | | 73 | | | | | | 73 | | |
General expenses
|
| | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | | | | | 562 | | | | | | 564 | | |
| | |
Year ended December 31
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Operating expenses
|
| | | | 639 | | | | | | 836 | | | | | | 978 | | | | | | 461 | | | | | | 481 | | |
Non-operating expenses
|
| | | | 101 | | | | | | 174 | | | | | | 234 | | | | | | 101 | | | | | | 83 | | |
Total general expenses
|
| | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | | | | | 562 | | | | | | 564 | | |
| | |
Year ended December 31
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Borrowings
|
| | | | 29 | | | | | | 94 | | | | | | 168 | | | | | | 88 | | | | | | 61 | | |
Lease liabilities
|
| | | | — | | | | | | 6 | | | | | | 6 | | | | | | 3 | | | | | | 3 | | |
Others
|
| | | | 2 | | | | | | 9 | | | | | | 35 | | | | | | 15 | | | | | | 15 | | |
Total finance costs
|
| | | | 31 | | | | | | 109 | | | | | | 209 | | | | | | 106 | | | | | | 79 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Investment management expenses and others
|
| | | | 41 | | | | | | 47 | | | | | | 62 | | | | | | 27 | | | | | | 31 | | |
Amortization of value of business acquired
|
| | | | 40 | | | | | | 31 | | | | | | 82 | | | | | | 25 | | | | | | 58 | | |
Others
|
| | | | 23 | | | | | | 77 | | | | | | 13 | | | | | | 3 | | | | | | 2 | | |
Total other expenses
|
| | | | 104 | | | | | | 155 | | | | | | 157 | | | | | | 55 | | | | | | 91 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Net profit/(loss) from interest in associates
|
| | | | 1 | | | | | | (2) | | | | | | (2) | | | | | | (1) | | | | | | (8) | | |
Net profit/(loss) from interest in OGS
|
| | | | 17 | | | | | | 9 | | | | | | 1 | | | | | | 4 | | | | | | 6 | | |
Total share of profit/(loss) from associates and joint
venture |
| | | | 18 | | | | | | 7 | | | | | | (1) | | | | | | 3 | | | | | | (2) | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Profit/(loss) from continuing operations after tax
|
| | | | (198) | | | | | | (316) | | | | | | (272) | | | | | | (317) | | | | | | 156 | | |
Net loss of the Company and Financing Entities(1)
|
| | | | — | | | | | | 2 | | | | | | 36 | | | | | | 15 | | | | | | — | | |
Adjusted net profit/(loss) from continuing operations after tax
|
| | | | (198) | | | | | | (314) | | | | | | (236) | | | | | | (302) | | | | | | 156 | | |
Tax on adjusted operating profit before tax
|
| | | | 29 | | | | | | 34 | | | | | | 50 | | | | | | 16 | | | | | | 30 | | |
Tax impact from non-operating items
|
| | | | (62) | | | | | | (54) | | | | | | 3 | | | | | | (17) | | | | | | 20 | | |
Adjusted profit/(loss) before tax from continuing operations
|
| | | | (231) | | | | | | (334) | | | | | | (183) | | | | | | (303) | | | | | | 206 | | |
Non-operating items, net of related changes in insurance and investment contract liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term fluctuations in investment return related to equities
and property investments |
| | | | 66 | | | | | | (40) | | | | | | 104 | | | | | | 211 | | | | | | (255) | | |
Other non-operating investment return(2)
|
| | | | 18 | | | | | | 55 | | | | | | (233) | | | | | | (50) | | | | | | 34 | | |
Finance costs related to borrowings and long-term payables(3)
|
| | | | 29 | | | | | | 99 | | | | | | 162 | | | | | | 85 | | | | | | 73 | | |
Amortization of value of business acquired
|
| | | | 40 | | | | | | 31 | | | | | | 82 | | | | | | 25 | | | | | | 58 | | |
M&A, business set up and restructuring related costs
|
| | | | 71 | | | | | | 100 | | | | | | 144 | | | | | | 50 | | | | | | 41 | | |
IPO-related costs including incentive costs
|
| | | | — | | | | | | 2 | | | | | | 40 | | | | | | 24 | | | | | | 24 | | |
Implementation costs for significant new accounting standards
such as IFRS 9 and 17 and other mandatory regulatory changes such as Group-wide Supervision |
| | | | 5 | | | | | | 18 | | | | | | 31 | | | | | | 14 | | | | | | 15 | | |
Other non-operating items(4)
|
| | | | 46 | | | | | | 116 | | | | | | (22) | | | | | | 12 | | | | | | (90) | | |
Adjusted operating profit before tax
|
| | | | 44 | | | | | | 47 | | | | | | 125 | | | | | | 68 | | | | | | 106 | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| |||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
|
Hong Kong
|
| |
16.5%
|
| |
16.5%
|
| |
16.5%
|
| |
16.5%
|
| |
16.5%
|
|
Thailand
|
| |
20%
|
| |
20%
|
| |
20%
|
| |
20%
|
| |
20%
|
|
Japan
|
| |
28%
|
| |
28%
|
| |
28%
|
| |
28%
|
| |
28%
|
|
Others
|
| |
12% – 30%
|
| |
12% – 30%
|
| |
12% – 30%
|
| |
12% – 30%
|
| |
12% – 25%
|
|
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Pension business
|
| | | | 2 | | | | | | 2 | | | | | | 2 | | | | | | 1 | | | | | | 9 | | |
General insurance business
|
| | | | — | | | | | | (18) | | | | | | 18 | | | | | | (2) | | | | | | 40 | | |
Profit/(loss) from discontinued operations, net of tax
|
| | | | 2 | | | | | | (16) | | | | | | 20 | | | | | | (1) | | | | | | 49 | | |
| | |
For the Year ended December 31/
As of December 31 |
| |
For the Six Months ended
June 30/ As of June 30, |
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||
TWPI(1) | | | | | 1,183 | | | | | | 1,443 | | | | | | 1,730 | | | | | | 767 | | | | | | 950 | | |
APE(2) | | | | | 367 | | | | | | 431 | | | | | | 372 | | | | | | 167 | | | | | | 252 | | |
Onshore
|
| | | | 195 | | | | | | 224 | | | | | | 281 | | | | | | 127 | | | | | | 172 | | |
Offshore
|
| | | | 172 | | | | | | 207 | | | | | | 91 | | | | | | 41 | | | | | | 80 | | |
VNB(3) | | | | | 130 | | | | | | 170 | | | | | | 167 | | | | | | 63 | | | | | | 98 | | |
Onshore
|
| | | | 71 | | | | | | 90 | | | | | | 146 | | | | | | 51 | | | | | | 87 | | |
Offshore
|
| | | | 59 | | | | | | 81 | | | | | | 21 | | | | | | 12 | | | | | | 11 | | |
Adjusted operating profit before tax
|
| | | | 130 | | | | | | 128 | | | | | | 141 | | | | | | 58 | | | | | | 85 | | |
Allocated segment assets
|
| | | | 15,084 | | | | | | 17,027 | | | | | | 22,669 | | | | | | N/A | | | | | | 23,368 | | |
Ratios: | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Expense Ratio
|
| | | | 10.4% | | | | | | 13.4% | | | | | | 11.3% | | | | | | 10.7% | | | | | | 10.6% | | |
VNB Margin(3)
|
| | | | 35.5% | | | | | | 39.6% | | | | | | 45.0% | | | | | | 37.4% | | | | | | 39.0% | | |
| | |
For the Year ended December 31/
As of December 31, |
| |
For the Six Months ended
June 30/ As of June 30, |
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||
TWPI(1) | | | | | 795 | | | | | | 1,140 | | | | | | 2,255 | | | | | | 1,190 | | | | | | 1,248 | | |
APE(2) | | | | | 207 | | | | | | 266 | | | | | | 616 | | | | | | 358 | | | | | | 269 | | |
TMB
|
| | | | 150 | | | | | | 139 | | | | | | 86 | | | | | | 46 | | | | | | — | | |
SCB(3)
|
| | | | — | | | | | | 57 | | | | | | 434 | | | | | | 260 | | | | | | 225 | | |
Others
|
| | | | 57 | | | | | | 71 | | | | | | 96 | | | | | | 53 | | | | | | 44 | | |
VNB(4) | | | | | 72 | | | | | | 65 | | | | | | 183 | | | | | | 87 | | | | | | 125 | | |
TMB
|
| | | | 56 | | | | | | 34 | | | | | | 20 | | | | | | 8 | | | | | | — | | |
SCB(3)
|
| | | | — | | | | | | 11 | | | | | | 127 | | | | | | 63 | | | | | | 104 | | |
Others
|
| | | | 15 | | | | | | 21 | | | | | | 36 | | | | | | 15 | | | | | | 21 | | |
Adjusted operating profit before tax
|
| | | | 48 | | | | | | 41 | | | | | | 86 | | | | | | 43 | | | | | | 64 | | |
Allocated segment assets
|
| | | | 4,896 | | | | | | 21,137 | | | | | | 22,475 | | | | | | N/A | | | | | | 20,736 | | |
Ratios: | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Expense Ratio
|
| | | | 9.5% | | | | | | 11.2% | | | | | | 9.8% | | | | | | 8.9% | | | | | | 8.6% | | |
VNB Margin(4)
|
| | | | 34.5% | | | | | | 24.5% | | | | | | 29.7% | | | | | | 24.3% | | | | | | 46.5% | | |
| | |
For the Year ended December 31/
As of December 31, |
| |
For the Six Months ended
June 30/ As of June 30, |
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||
TWPI(1) | | | | | 1,655 | | | | | | 1,801 | | | | | | 2,131 | | | | | | 1,141 | | | | | | 1,174 | | |
APE(2) | | | | | 367 | | | | | | 270 | | | | | | 507 | | | | | | 140 | | | | | | 106 | | |
Individual
|
| | | | 47 | | | | | | 95 | | | | | | 123 | | | | | | 55 | | | | | | 65 | | |
COLI
|
| | | | 320 | | | | | | 176 | | | | | | 149 | | | | | | 85 | | | | | | 41 | | |
Retrocession reinsurance
|
| | | | — | | | | | | — | | | | | | 236 | | | | | | — | | | | | | — | | |
VNB(3) | | | | | 408 | | | | | | 210 | | | | | | 188 | | | | | | 53 | | | | | | 69 | | |
Individual
|
| | | | 45 | | | | | | 76 | | | | | | 95 | | | | | | 36 | | | | | | 55 | | |
COLI
|
| | | | 363 | | | | | | 134 | | | | | | 38 | | | | | | 17 | | | | | | 14 | | |
Retrocession reinsurance
|
| | | | — | | | | | | — | | | | | | 56 | | | | | | — | | | | | | — | | |
Adjusted operating profit before tax
|
| | | | 56 | | | | | | 71 | | | | | | 100 | | | | | | 54 | | | | | | 69 | | |
Allocated segment assets
|
| | | | 8,832 | | | | | | 10,618 | | | | | | 12,970 | | | | | | N/A | | | | | | 13,007 | | |
Ratios: | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Expense Ratio
|
| | | | 13.7% | | | | | | 14.5% | | | | | | 12.4% | | | | | | 12.1% | | | | | | 9.8% | | |
VNB Margin(3)
|
| | | | 111.2% | | | | | | 77.7% | | | | | | 37.1% | | | | | | 38.0% | | | | | | 64.7% | | |
| | |
For the Year ended December 31/
As of December 31, |
| |
For the Six Months ended
June 30 / As of June 30, |
| | ||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| | |||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| | | | |||||||||||||||||||||||||||
TWPI(1) | | | | | 177 | | | | | | 271 | | | | | | 430 | | | | | | 168 | | | | | | 285 | | | | ||
APE(2) | | | | | 114 | | | | | | 157 | | | | | | 197 | | | | | | 85 | | | | | | 123 | | | | ||
Partnerships and discontinued businesses(3)
|
| | | | 7 | | | | | | 23 | | | | | | 49 | | | | | | 6 | | | | | | 23 | | | | ||
Others
|
| | | | 107 | | | | | | 134 | | | | | | 147 | | | | | | 79 | | | | | | 100 | | | | ||
VNB(4) | | | | | 38 | | | | | | 52 | | | | | | 79 | | | | | | 32 | | | | | | 54 | | | | ||
Partnerships and discontinued businesses(3)
|
| | | | 2 | | | | | | 3 | | | | | | 19 | | | | | | 2 | | | | | | 9 | | | | ||
Others
|
| | | | 36 | | | | | | 49 | | | | | | 60 | | | | | | 30 | | | | | | 45 | | | | ||
Adjusted operating loss before tax
|
| | | | (81) | | | | | | (98) | | | | | | (87) | | | | | | (41) | | | | | | (52) | | | | ||
Allocated segment assets
|
| | | | 784 | | | | | | 1,912 | | | | | | 3,409 | | | | | | N/A | | | | | | 3,950 | | | | ||
Ratios: | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Expense Ratio
|
| | | | 63.3% | | | | | | 53.4% | | | | | | 40.6% | | | | | | 42.6% | | | | | | 36.9% | | | | ||
VNB Margin(4)
|
| | | | 33.5% | | | | | | 32.9% | | | | | | 40.0% | | | | | | 37.3% | | | | | | 43.8% | | | |
| | |
For the Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Adjusted operating loss before tax
|
| | | | (109) | | | | | | (95) | | | | | | (115) | | | | | | (46) | | | | | | (60) | | |
| | |
As of December 31,
|
| |
As of June 30,
2021 |
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Intangible assets
|
| | | | 1,671 | | | | | | 3,487 | | | | | | 3,531 | | | | | | 3,383 | | |
Assets other than financial investments(1)
|
| | | | 8,194 | | | | | | 10,867 | | | | | | 13,377 | | | | | | 13,672 | | |
Financial investments | | | | | | | | | | | | | | | | | | | | | |||||
Loans and deposits
|
| | | | 782 | | | | | | 1,701 | | | | | | 1,754 | | | | | | 1,686 | | |
Available for sale debt securities
|
| | | | 16,709 | | | | | | 30,837 | | | | | | 37,839 | | | | | | 36,283 | | |
At fair value through profit or loss: | | | | | | | | | | | | | | | | | | | | | |||||
Debt securities
|
| | | | 60 | | | | | | 109 | | | | | | 129 | | | | | | 100 | | |
Equity securities
|
| | | | 2,634 | | | | | | 4,111 | | | | | | 5,740 | | | | | | 7,276 | | |
Derivative financial instruments
|
| | | | 30 | | | | | | 193 | | | | | | 180 | | | | | | 148 | | |
Total financial investments
|
| | | | 20,215 | | | | | | 36,951 | | | | | | 45,642 | | | | | | 45,493 | | |
Total assets
|
| | | | 30,080 | | | | | | 51,305 | | | | | | 62,550 | | | | | | 62,548 | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| | ||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| | ||||||||||||||
| | |
(US$ millions)
|
| ||||||||||||||||||||||||
Intangible assets | | | | | | | | | | | | | | | | | | | | | | |||||||
Goodwill
|
| | | | 932 | | | | | | 1,448 | | | | | | 1,615 | | | | | | 1,576 | | | | ||
Distribution rights
|
| | | | 678 | | | | | | 1,935 | | | | | | 1,786 | | | | | | 1,684 | | | | ||
Computer software and others
|
| | | | 61 | | | | | | 104 | | | | | | 130 | | | | | | 123 | | | | ||
Total intangible assets
|
| | | | 1,671 | | | | | | 3,487 | | | | | | 3,531 | | | | | | 3,383 | | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Assets other than financial investments | | | | | | | | | | | | | | | | | | | | | |||||
Reinsurance assets
|
| | | | 2,335 | | | | | | 2,880 | | | | | | 3,232 | | | | | | 3,317 | | |
Deferred acquisition costs
|
| | | | 2,747 | | | | | | 3,766 | | | | | | 4,591 | | | | | | 4,609 | | |
Cash and cash equivalents
|
| | | | 1,493 | | | | | | 1,911 | | | | | | 2,730 | | | | | | 2,541 | | |
Other non-financial assets(1)
|
| | | | 1,619 | | | | | | 2,310 | | | | | | 2,824 | | | | | | 3,205 | | |
Total assets other than financial investments
|
| | | | 8,194 | | | | | | 10,867 | | | | | | 13,377 | | | | | | 13,672 | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Liabilities | | | | | | ||||||||||||||||||||
Insurance and investment contract liabilities
|
| | | | 23,047 | | | | | | 37,656 | | | | | | 45,481 | | | | | | 46,656 | | |
Financial liabilities(1)
|
| | | | 614 | | | | | | 4,113 | | | | | | 3,671 | | | | | | 3,613 | | |
Liabilities – other than the above(2)
|
| | | | 2,396 | | | | | | 4,006 | | | | | | 5,173 | | | | | | 4,335 | | |
Total liabilities
|
| | | | 26,057 | | | | | | 45,775 | | | | | | 54,325 | | | | | | 54,604 | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Total equity attributable to shareholders of the Company
|
| | | | 2,315 | | | | | | 2,918 | | | | | | 4,898 | | | | | | 4,610 | | |
Perpetual securities
|
| | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | | | | | 1,607 | | |
Non-controlling interests(1)
|
| | | | 711 | | | | | | 1,004 | | | | | | 1,720 | | | | | | 1,727 | | |
Total equity
|
| | | | 4,023 | | | | | | 5,530 | | | | | | 8,225 | | | | | | 7,944 | | |
Share capital and share premium
|
| | | | 710 | | | | | | 1,028 | | | | | | 1,713 | | | | | | 1,726 | | |
Non-controlling interests
|
| | | | (711) | | | | | | (966) | | | | | | (1,713) | | | | | | (1,726) | | |
Adjusted total equity
|
| | | | 4,022 | | | | | | 5,592 | | | | | | 8,225 | | | | | | 7,944 | | |
Adjusted total equity attributable to | | | | | | | | | | | | | | | | | | | | | |||||
Shareholders of the Company
|
| | | | 3,025 | | | | | | 3,946 | | | | | | 6,611 | | | | | | 6,336 | | |
Perpetual securities
|
| | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | | | | | 1,607 | | |
Non-controlling interests(1)
|
| | | | — | | | | | | 38 | | | | | | 7 | | | | | | 1 | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
Issued on
|
| |
(US$ millions)
|
| |||||||||||||||||||||
January 24, 2017
|
| | | | 255 | | | | | | 255 | | | | | | 255 | | | | | | 255 | | |
June 15, 2017
|
| | | | 360 | | | | | | 360 | | | | | | 360 | | | | | | 360 | | |
July 6, 2017
|
| | | | 179 | | | | | | 179 | | | | | | 179 | | | | | | 179 | | |
February 1, 2018
|
| | | | 203 | | | | | | 203 | | | | | | 203 | | | | | | 203 | | |
September 16, 2019
|
| | | | — | | | | | | 611 | | | | | | 610 | | | | | | 610 | | |
Total | | | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | | | | | 1,607 | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities
|
| | | | 16,921 | | | | | | 87.7% | | | | | | 31,529 | | | | | | 88.2% | | | | | | 38,596 | | | | | | 88.4% | | | | | | 36,993 | | | | | | 84.8% | | |
Equity securities
|
| | | | 1,670 | | | | | | 8.7% | | | | | | 2,821 | | | | | | 7.9% | | | | | | 3,630 | | | | | | 8.3% | | | | | | 5,115 | | | | | | 11.7% | | |
Investment properties
|
| | | | 306 | | | | | | 1.6% | | | | | | 542 | | | | | | 1.5% | | | | | | 609 | | | | | | 1.4% | | | | | | 684 | | | | | | 1.6% | | |
Others(1) | | | | | 376 | | | | | | 2.0% | | | | | | 805 | | | | | | 2.3% | | | | | | 866 | | | | | | 2.0% | | | | | | 825 | | | | | | 1.9% | | |
Derivatives
|
| | | | 9 | | | | | | 0.0% | | | | | | 26 | | | | | | 0.1% | | | | | | (34) | | | | | | (0.1)% | | | | | | (2) | | | | | | (0.0)% | | |
Total | | | | | 19,282 | | | | | | 100% | | | | | | 35,723 | | | | | | 100% | | | | | | 43,667 | | | | | | 100% | | | | | | 43,615 | | | | | | 100% | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Debt securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Government bonds
|
| | | | 6,543 | | | | | | 37.8% | | | | | | 15,124 | | | | | | 46.8% | | | | | | 17,755 | | | | | | 45.0% | | | | | | 16,423 | | | | | | 43.4% | | |
Government agency bonds
|
| | | | 984 | | | | | | 5.7% | | | | | | 961 | | | | | | 3.0% | | | | | | 2,171 | | | | | | 5.5% | | | | | | 1,848 | | | | | | 4.9% | | |
Corporate bonds
|
| | | | 8,441 | | | | | | 48.8% | | | | | | 13,749 | | | | | | 42.5% | | | | | | 16,253 | | | | | | 41.2% | | | | | | 16,334 | | | | | | 43.2% | | |
Structured securities
|
| | | | 524 | | | | | | 3.0% | | | | | | 770 | | | | | | 2.4% | | | | | | 1,391 | | | | | | 3.5% | | | | | | 1,419 | | | | | | 3.8% | | |
Others
|
| | | | 429 | | | | | | 2.5% | | | | | | 925 | | | | | | 2.9% | | | | | | 1,026 | | | | | | 2.6% | | | | | | 969 | | | | | | 2.6% | | |
Subtotal | | | | | 16,921 | | | | | | 97.8% | | | | | | 31,529 | | | | | | 97.5% | | | | | | 38,596 | | | | | | 97.8% | | | | | | 36,993 | | | | | | 97.9% | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Loans and deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Policy loans
|
| | | | 368 | | | | | | 2.2% | | | | | | 797 | | | | | | 2.5% | | | | | | 856 | | | | | | 2.2% | | | | | | 810 | | | | | | 2.1% | | |
Secured loans
|
| | | | 6 | | | | | | 0.0% | | | | | | 6 | | | | | | 0.0% | | | | | | 11 | | | | | | 0.0% | | | | | | 15 | | | | | | 0.0% | | |
Other financial receivables
|
| | | | 4 | | | | | | 0.0% | | | | | | 7 | | | | | | 0.0% | | | | | | 1 | | | | | | 0.0% | | | | | | 2 | | | | | | 0.0% | | |
Provision for impairment
|
| | | | (2) | | | | | | 0.0% | | | | | | (5) | | | | | | 0.0% | | | | | | (2) | | | | | | 0.0% | | | | | | (2) | | | | | | 0.0% | | |
Subtotal | | | | | 376 | | | | | | 2.2% | | | | | | 805 | | | | | | 2.5% | | | | | | 866 | | | | | | 2.2% | | | | | | 825 | | | | | | 2.1% | | |
Total(1) | | | | | 17,297 | | | | | | 100% | | | | | | 32,334 | | | | | | 100% | | | | | | 39,462 | | | | | | 100% | | | | | | 37,818 | | | | | | 100% | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Thailand
|
| | | | 1,874 | | | | | | 28.6% | | | | | | 11,155 | | | | | | 73.8% | | | | | | 12,930 | | | | | | 72.9% | | | | | | 11,519 | | | | | | 70.3% | | |
Japan
|
| | | | 3,290 | | | | | | 50.3% | | | | | | 2,548 | | | | | | 16.8% | | | | | | 2,561 | | | | | | 14.4% | | | | | | 2,643 | | | | | | 16.1% | | |
United States
|
| | | | 965 | | | | | | 14.8% | | | | | | 955 | | | | | | 6.3% | | | | | | 1,355 | | | | | | 7.6% | | | | | | 1,218 | | | | | | 7.4% | | |
Other
|
| | | | 414 | | | | | | 6.3% | | | | | | 466 | | | | | | 3.1% | | | | | | 909 | | | | | | 5.1% | | | | | | 1,043 | | | | | | 6.2% | | |
Total government bonds
|
| | | | 6,543 | | | | | | 100% | | | | | | 15,124 | | | | | | 100% | | | | | | 17,755 | | | | | | 100% | | | | | | 16,423 | | | | | | 100% | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
AAA
|
| | | | 1,308 | | | | | | 7.7% | | | | | | 1,270 | | | | | | 4.0% | | | | | | 1,871 | | | | | | 4.8% | | | | | | 1,647 | | | | | | 4.5% | | |
AA
|
| | | | 1,380 | | | | | | 8.2% | | | | | | 1,548 | | | | | | 4.9% | | | | | | 2,018 | | | | | | 5.2% | | | | | | 2,061 | | | | | | 5.6% | | |
A
|
| | | | 7,479 | | | | | | 44.3% | | | | | | 7,827 | | | | | | 24.8% | | | | | | 10,231 | | | | | | 26.5% | | | | | | 10,613 | | | | | | 28.7% | | |
BBB
|
| | | | 5,878 | | | | | | 34.7% | | | | | | 18,315 | | | | | | 58.1% | | | | | | 21,531 | | | | | | 55.8% | | | | | | 20,564 | | | | | | 55.6% | | |
Below Investment Grade
|
| | | | 364 | | | | | | 2.1% | | | | | | 1,501 | | | | | | 4.8% | | | | | | 1,602 | | | | | | 4.2% | | | | | | 1,687 | | | | | | 4.6% | | |
Non-Rated
|
| | | | 512 | | | | | | 3.0% | | | | | | 1,068 | | | | | | 3.4% | | | | | | 1,343 | | | | | | 3.5% | | | | | | 421 | | | | | | 1.0% | | |
Total | | | | | 16,921 | | | | | | 100% | | | | | | 31,529 | | | | | | 100% | | | | | | 38,596 | | | | | | 100% | | | | | | 36,993 | | | | | | 100% | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
(US$ millions, except for percentages)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Equity shares
|
| | | | 399 | | | | | | 23.9% | | | | | | 1,092 | | | | | | 38.7% | | | | | | 1,374 | | | | | | 37.9% | | | | | | 2,189 | | | | | | 42.8% | | |
Interests in investment funds
|
| | | | 1,271 | | | | | | 76.1% | | | | | | 1,729 | | | | | | 61.3% | | | | | | 2,256 | | | | | | 62.1% | | | | | | 2,926 | | | | | | 57.2% | | |
Total | | | | | 1,670 | | | | | | 100% | | | | | | 2,821 | | | | | | 100% | | | | | | 3,630 | | | | | | 100% | | | | | | 5,115 | | | | | | 100% | | |
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| ||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Net cash provided by/(used in) operating activities
|
| | | | 161 | | | | | | (32) | | | | | | (2) | | | | | | 428 | | | | | | (132) | | |
Net cash used in investing activities
|
| | | | (393) | | | | | | (3,351) | | | | | | (533) | | | | | | (543) | | | | | | (274) | | |
Net cash provided by financing activities
|
| | | | 325 | | | | | | 3,774 | | | | | | 1,353 | | | | | | 629 | | | | | | 276 | | |
Net increase/(decrease) in cash and cash equivalents
|
| | | | 93 | | | | | | 391 | | | | | | 818 | | | | | | 514 | | | | | | (130) | | |
Cash and cash equivalents at beginning of the year/ period
|
| | | | 1,395 | | | | | | 1,493 | | | | | | 1,911 | | | | | | 1,911 | | | | | | 2,730 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | 5 | | | | | | 27 | | | | | | 11 | | | | | | (21) | | | | | | (57) | | |
Cash and cash equivalents at the end of year/period(1)
|
| | | | 1,493 | | | | | | 1,911 | | | | | | 2,740 | | | | | | 2,404 | | | | | | 2,543 | | |
| | |
Year ended
December 31, |
| |
Six Months ended
June 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Purchase of property, plant and equipment (excluding right-of-use assets)
|
| | | | 31 | | | | | | 31 | | | | | | 13 | | | | | | 4 | | |
Purchase of intangible assets – computer software and others
|
| | | | 40 | | | | | | 54 | | | | | | 64 | | | | | | 19 | | |
Total
|
| | | | 71 | | | | | | 85 | | | | | | 77 | | | | | | 23 | | |
| | |
As of December 31,
|
| |
As of June 30,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||
Bank borrowings
|
| | | | 271 | | | | | | 2,223 | | | | | | 2,234 | | | | | | 2,239 | | |
Medium-term notes
|
| | | | 322 | | | | | | 323 | | | | | | 323 | | | | | | 324 | | |
Subordinated notes
|
| | | | — | | | | | | 902 | | | | | | 900 | | | | | | 900 | | |
Guaranteed notes
|
| | | | — | | | | | | 498 | | | | | | — | | | | | | — | | |
Total borrowings
|
| | | | 593 | | | | | | 3,946 | | | | | | 3,457 | | | | | | 3,463 | | |
|
Date of facility
|
| |
Nominal amount
|
| |
Interest rate
|
| |
Tenor
|
|
| July 31, 2018 | | |
US$275 million
|
| |
LIBOR + 2%
|
| | 3 years | |
| February 4, 2019 | | |
US$175 million
|
| |
LIBOR + 2%
|
| | 3 years | |
| September 10, 2019(1) | | |
US$1,800 million
|
| |
LIBOR + 1.5%
|
| | 3 years | |
|
Issue date
|
| |
Description
|
| |
Nominal amount
|
| |
Interest rate
|
| |
Tenor
|
|
| September 24, 2014 | | |
Medium-term notes
|
| |
US$325 million
|
| |
5.00%
|
| | 10 years | |
| July 9, 2019 | | |
Subordinated notes
|
| |
US$550 million
|
| |
5.75%
|
| | 5 years | |
| July 23, 2019 | | |
Subordinated notes
|
| |
US$250 million
|
| |
5.75%
|
| | 5 years | |
| July 30, 2019 | | |
Subordinated notes
|
| |
US$100 million
|
| |
5.75%
|
| | 5 years | |
| | |
Nominal amount
|
| |
Distribution rate
|
| |
Tenor
|
| |||
January 24, 2017
|
| |
US$250m
|
| |
6.250%
|
| | | | Perpetual | | |
June 15, 2017
|
| |
US$500m
|
| |
Note 1
|
| | | | Perpetual | | |
July 6, 2017
|
| |
US$250m
|
| |
Note 1
|
| | | | Perpetual | | |
February 1, 2018
|
| |
US$200m
|
| |
5.500%
|
| | | | Perpetual | | |
September 16, 2019
|
| |
US$600m
|
| |
6.375%
|
| | | | Perpetual | | |
US$ millions
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||||||||
January 24, 2017
|
| | | | 255 | | | | | | 255 | | | | | | 255 | | | | | | 255 | | |
June 15, 2017
|
| | | | 360 | | | | | | 360 | | | | | | 360 | | | | | | 360 | | |
July 6, 2017
|
| | | | 179 | | | | | | 179 | | | | | | 179 | | | | | | 179 | | |
February 1, 2018
|
| | | | 203 | | | | | | 203 | | | | | | 203 | | | | | | 203 | | |
September 16, 2019
|
| | | | — | | | | | | 611 | | | | | | 610 | | | | | | 610 | | |
| | | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | | | | | 1,607 | | |
| | |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More Than
5 Years |
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Type of Commitments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt obligations(1)
|
| | | | 3,757 | | | | | | 555 | | | | | | 1,943 | | | | | | 1,259 | | | | | | — | | |
IFRS 16 lease obligations(2)
|
| | | | 208 | | | | | | 63 | | | | | | 96 | | | | | | 42 | | | | | | 7 | | |
Investment and capital commitments(3)
|
| | | | 1,380 | | | | | | 321 | | | | | | 686 | | | | | | 373 | | | | | | — | | |
Purchase obligations(4)
|
| | | | 399 | | | | | | 84 | | | | | | 226 | | | | | | 55 | | | | | | 34 | | |
Insurance and investment contract liabilities(5)
|
| | | | 162,052 | | | | | | 4,426 | | | | | | 9,219 | | | | | | 8,614 | | | | | | 139,793 | | |
Other long-term liabilities(6)
|
| | | | 941 | | | | | | 128 | | | | | | 433 | | | | | | 24 | | | | | | 356 | | |
Total | | | | | 168,737 | | | | | | 5,577 | | | | | | 12,603 | | | | | | 10,367 | | | | | | 140,190 | | |
| | |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More Than
5 Years |
| |||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||
Type of Commitments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt obligations(1)
|
| | | | 3,814 | | | | | | 384 | | | | | | 2,137 | | | | | | 1,293 | | | | | | — | | |
IFRS 16 lease obligations(2)
|
| | | | 238 | | | | | | 64 | | | | | | 105 | | | | | | 55 | | | | | | 14 | | |
Investment and capital commitments(3)
|
| | | | 1,326 | | | | | | 293 | | | | | | 724 | | | | | | 305 | | | | | | 4 | | |
Purchase obligations(4)
|
| | | | 776 | | | | | | 427 | | | | | | 260 | | | | | | 55 | | | | | | 34 | | |
Insurance and investment contract liabilities(5)
|
| | | | 157,340 | | | | | | 4,266 | | | | | | 9,129 | | | | | | 9,099 | | | | | | 134,846 | | |
Other long-term liabilities(6)
|
| | | | 1,112 | | | | | | 132 | | | | | | 593 | | | | | | 24 | | | | | | 363 | | |
Total | | | | | 164,606 | | | | | | 5,566 | | | | | | 12,948 | | | | | | 10,831 | | | | | | 135,261 | | |
| | |
As of December 31, 2018
|
| |
As of December 31, 2019
|
| |
As of December 31, 2020
|
| |
As of June 30, 2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| ||||||||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||||||||||||||||||||
+50 basis points shift in yield curves
|
| | | | 10 | | | | | | (670) | | | | | | 4 | | | | | | (1,350) | | | | | | 18 | | | | | | (1,611) | | | | | | 18 | | | | | | (1,546) | | |
-50 basis points shift in yield curves
|
| | | | (10) | | | | | | 684 | | | | | | (4) | | | | | | 1,381 | | | | | | (17) | | | | | | 1,664 | | | | | | (18) | | | | | | 1,633 | | |
| | |
As of December 31, 2018
|
| |
As of December 31, 2019
|
| |
As of December 31, 2020
|
| |
As of June 30, 2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| |
Impact
on profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| ||||||||||||||||||||||||
| | |
(US$ millions)
|
| |||||||||||||||||||||||||||||||||||||||||||||
10% increase in equity prices
|
| | | | 117 | | | | | | — | | | | | | 184 | | | | | | — | | | | | | 229 | | | | | | — | | | | | | 302 | | | | | | — | | |
10% decrease in equity prices
|
| | | | (117) | | | | | | — | | | | | | (184) | | | | | | — | | | | | | (229) | | | | | | — | | | | | | (302) | | | | | | — | | |
| | |
Year ended December 31,
|
| |
Six Months ended
June 30, 2021(1) |
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||||||||
Risk-free interest rate
|
| | | | 1.82% | | | | | | 0.84% | | | | | | 0.02% | | | | | | N/A | | |
Volatility
|
| | | | 30.00% | | | | | | 30.00% | | | | | | 30.00% | | | | | | N/A | | |
Dividend yield
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | N/A | | |
Exercise price (US$ per share)
|
| | | | 0.01 | | | | | | 0.01 | | | | | | 0.01 | | | | | | N/A | | |
Expected life of share options (in years)
|
| | | | 2.50 | | | | | | 1.50 | | | | | | 0.50 | | | | | | N/A | | |
| | |
Year ended December 31,
|
| |
Six Months ended
June 30, 2021(1) |
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||||||||
Weighted average share price (US$ per share)
|
| | | | 216.94 | | | | | | 228.17 | | | | | | 202.11 | | | | | | N/A | | |
FWD Group Limited
|
| | | | 112.46 | | | | | | 121.84 | | | | | | 104.42 | | | | | | N/A | | |
FWD Limited
|
| | | | 104.48 | | | | | | 106.33 | | | | | | 97.69 | | | | | | N/A | | |
|
|
|
|
|
| |
|
|
| | |
Year ended December 31,
|
| |
Six Months ended June 30,
|
| |
2018 – 2020
CAGR |
| |
1H20-1H21
YoY Growth |
| ||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||||||||||||||
| | |
(US$ millions, except VNB Margin)
|
| |
(%)
|
| |
(%)
|
| |||||||||||||||||||||||||||||||||
Bancassurance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
APE
|
| | | | 259 | | | | | | 345 | | | | | | 687 | | | | | | 388 | | | | | | 326 | | | | | | 62.7% | | | | | | (16.1)% | | |
VNB
|
| | | | 94 | | | | | | 91 | | | | | | 209 | | | | | | 93 | | | | | | 147 | | | | | | 49.1% | | | | | | 57.6% | | |
VNB Margin (%)
|
| | | | 36.2% | | | | | | 26.4% | | | | | | 30.4% | | | | | | 24.0% | | | | | | 45.2% | | | | | | | | | | |||||
Agency | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
APE
|
| | | | 211 | | | | | | 283 | | | | | | 266 | | | | | | 107 | | | | | | 138 | | | | | | 12.3% | | | | | | 28.5% | | |
VNB
|
| | | | 106 | | | | | | 144 | | | | | | 141 | | | | | | 57 | | | | | | 76 | | | | | | 15.2% | | | | | | 34.8% | | |
VNB Margin (%)
|
| | | | 50.4% | | | | | | 51.1% | | | | | | 53.0% | | | | | | 52.7% | | | | | | 55.3% | | | | | | | | | | |||||
Brokerage/IFA | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
APE
|
| | | | 470 | | | | | | 401 | | | | | | 403 | | | | | | 208 | | | | | | 228 | | | | | | (7.4)% | | | | | | 9.4% | | |
VNB
|
| | | | 420 | | | | | | 232 | | | | | | 150 | | | | | | 61 | | | | | | 93 | | | | | | (40.3)% | | | | | | 52.4% | | |
VNB Margin (%)
|
| | | | 89.5% | | | | | | 58.0% | | | | | | 37.1% | | | | | | 29.4% | | | | | | 41.0% | | | | | | | | | | |||||
Others(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
APE
|
| | | | 115 | | | | | | 97 | | | | | | 336 | | | | | | 47 | | | | | | 59 | | | | | | 71.0% | | | | | | 26.5% | | |
VNB
|
| | | | 28 | | | | | | 30 | | | | | | 118 | | | | | | 23 | | | | | | 29 | | | | | | 106.5% | | | | | | 25.5% | | |
VNB Margin (%)
|
| | | | 24.0% | | | | | | 30.6% | | | | | | 35.1% | | | | | | 50.1% | | | | | | 49.7% | | | | | | | | | | |||||
TOTAL | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
APE
|
| | | | 1,055 | | | | | | 1,125 | | | | | | 1,692 | | | | | | 751 | | | | | | 751 | | | | | | 26.6% | | | | | | 0.0% | | |
VNB
|
| | | | 648 | | | | | | 498 | | | | | | 617 | | | | | | 235 | | | | | | 346 | | | | | | (2.4)% | | | | | | 47.5% | | |
VNB Margin (%)
|
| | | | 61.4% | | | | | | 44.2% | | | | | | 36.5% | | | | | | 31.2% | | | | | | 46.1% | | | | | | | | | |
| | |
Hong Kong
(and Macau) |
| |
Thailand
(and Cambodia) |
| |
Japan
|
| |
Emerging
Markets |
| |
Total
|
| |||||||||||||||
2020 APE Breakdown | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bancassurance(1)
|
| | | | 23.9% | | | | | | 81.6% | | | | | | — | | | | | | 40.2% | | | | |
|
49.2%
|
| |
Agency
|
| | | | 41.0% | | | | | | 7.4% | | | | | | — | | | | | | 37.9% | | | | |
|
21.8%
|
| |
Brokerage/IFA
|
| | | | 29.8% | | | | | | 6.8% | | | | | | 78.0% | | | | | | 5.7% | | | | |
|
20.8%
|
| |
Others(2)
|
| | | | 5.3% | | | | | | 4.2% | | | | | | 22.0% | | | | | | 16.1% | | | | |
|
8.2%
|
| |
| | |
Year ended December 31,
|
| |
Six Months
ended June 30, |
| | | ||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| | | ||||||||||||||||
| | |
No. of Agents (rounded to thousands)
|
| | | | | | | |||||||||||||||||||||
Hong Kong (and Macau)
|
| | | | 2,800 | | | | | | 3,300 | | | | | | 3,600 | | | | | | 3,500 | | | | | ||||
Thailand (and Cambodia)
|
| | | | 4,400 | | | | | | 6,100 | | | | | | 6,600 | | | | | | 6,200 | | | | | ||||
Japan
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | ||||
Emerging Markets
|
| | | | 10,900 | | | | | | 15,500 | | | | | | 23,000 | | | | | | 26,500 | | | | | ||||
Total | | | | | 18,200 | | | | | | 24,900 | | | | | | 33,200 | | | | | | 36,100 | | | | | | |
| | |
As of December 31,
|
| |
As of July 1
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
No. of MDRT-registered agents
|
| |||||||||||||||||||||
Hong Kong (and Macau)
|
| | | | 206 | | | | | | 432 | | | | | | 577 | | | | | | 685 | | |
Thailand (and Cambodia)
|
| | | | 16 | | | | | | 36 | | | | | | 55 | | | | | | 143 | | |
Japan
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | 1 | | |
Emerging Markets
|
| | | | 261 | | | | | | 373 | | | | | | 398 | | | | | | 716 | | |
Total | | | | | 483 | | | | | | 841 | | | | | | 1,030 | | | | | | 1,545 | | |
| | |
As of December 31,
|
| |
As of July 1,
|
| ||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||
| | |
No. of Elite agents
|
| |||||||||||||||||||||
Hong Kong (and Macau)
|
| | | | 147 | | | | | | 261 | | | | | | 202 | | | | | | 401 | | |
Thailand (and Cambodia)
|
| | | | 95 | | | | | | 102 | | | | | | 191 | | | | | | 260 | | |
Japan
|
| | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | |
Emerging Markets
|
| | | | 229 | | | | | | 323 | | | | | | 564 | | | | | | 601 | | |
Total | | | | | 471 | | | | | | 686 | | | | | | 957 | | | | | | 1,262 | | |
| | |
Year ended December 31,
|
| |
Six Months
ended June 30, |
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
APE
|
| |
VNB
|
| |
APE
|
| |
VNB
|
| |
APE
|
| |
VNB
|
| |
APE
|
| |
VNB
|
| ||||||||||||||||||||||||
Participating life
|
| | | | 26% | | | | | | 14% | | | | | | 31% | | | | | | 28% | | | | | | 16% | | | | | | 19% | | | | | | 29% | | | | | | 19% | | |
Non-participating life
|
| | | | 21% | | | | | | 8% | | | | | | 28% | | | | | | 11% | | | | | | 35% | | | | | | 21% | | | | | | 25% | | | | | | 19% | | |
Critical illness, term life, medical and riders(1)
|
| | | | 7% | | | | | | 11% | | | | | | 12% | | | | | | 23% | | | | | | 28% | | | | | | 41% | | | | | | 24% | | | | | | 41% | | |
Unit-linked
|
| | | | 13% | | | | | | 8% | | | | | | 8% | | | | | | 8% | | | | | | 7% | | | | | | 6% | | | | | | 12% | | | | | | 9% | | |
Group
|
| | | | 4% | | | | | | 2% | | | | | | 5% | | | | | | 3% | | | | | | 5% | | | | | | 7% | | | | | | 5% | | | | | | 7% | | |
COLI
|
| | | | 30% | | | | | | 56% | | | | | | 16% | | | | | | 27% | | | | | | 9% | | | | | | 6% | | | | | | 5% | | | | | | 4% | | |
Total | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | |
Year
|
| |
Award / Recognition
|
| |
Issuing Body
|
|
2021 | | | Online Initiative of the Year | | | Asia FinTech Awards | |
2021 | | | Core Insurance Transformation (Bronze Award) | | | European Financial Management Association and Accenture | |
2021 | | | Outstanding Use of Digital Channels for Improved Customer Experience | | | The Digital Banker | |
2021 | | | Best Use of AI for Customer Experience (Highly Acclaimed) | | | The Digital Banker | |
2021 | | | Best Solution for Distribution | | | DigFin Innovation Awards | |
2021 | | | Best Client Communication Initiative | | | WatersTechnology Asia Awards | |
Year
|
| |
Award / Recognition
|
| |
Issuing Body
|
|
2021 | | | Asia’s Most Innovative Insurer | | | International Data Corporation | |
2020 | | | Insurtech Initiative of the Year | | | Insurance Asia News | |
2020 | | | Analytics Provider of the Year | | | Insurance Asia News | |
2020 | | | Outstanding Award in the Innovation Product Category | | | Bloomberg | |
2020 | | | Most Innovative Insurance Process Asia | | | Global Banking & Finance Awards | |
| | |
Employees
|
| |||
Hong Kong (and Macau)(1)
|
| | | | 1,050 | | |
Thailand (and Cambodia)
|
| | | | 1,876 | | |
Japan
|
| | | | 860 | | |
Emerging Markets
|
| | | | 2,058 | | |
Group Office(2)
|
| | | | 384 | | |
Shared services and Innovation Hub(3)
|
| | | | 238 | | |
Total | | | | | 6,466 | | |
Name
|
| |
Age
|
| |
Position/Title
|
|
Directors | | | | | | | |
Ronald Arculli | | |
82
|
| | Chairman and Non-Executive Director | |
Huynh Thanh Phong | | |
55
|
| | Group Chief Executive Officer and Executive Director | |
Li Tzar Kai, Richard | | |
54
|
| | Executive Director | |
Yijia Tiong | | |
37
|
| | Independent Non-Executive Director | |
Chung Kit Hung, Martina | | |
62
|
| | Independent Non-Executive Director | |
Dirk Sluimers | | |
68
|
| | Independent Non-Executive Director | |
John Baird | | |
52
|
| | Independent Non-Executive Director | |
Guido Fürer | | |
58
|
| | Non-Executive Director | |
Walter Kielholz | | |
70
|
| | Non-Executive Director | |
Kyoko Hattori | | |
46
|
| | Independent Non-Executive Director | |
Si-Hang Ma, Frederick | | |
69
|
| | Independent Non-Executive Director | |
Executive Officers | | | | | | | |
Jon Nielsen | | |
48
|
| | Managing Director and Group Chief Financial Officer | |
Simeon Preston | | |
51
|
| |
Managing Director and Group Chief Operating Officer
|
|
Binayak Dutta | | |
48
|
| | Managing Director, Emerging Markets and Group Chief Distribution Officer | |
Lau Chi Kin, Ken | | |
53
|
| | Managing Director, Greater China, and Chief Executive Officer, Hong Kong | |
Boon-Kee Tan | | |
49
|
| | Group Chief Strategy and Business Officer | |
Lee Murphy | | |
56
|
| | Group Chief Human Resources Officer | |
Peter Grimes | | |
62
|
| | Regional Chief Executive Officer, Thailand and Cambodia | |
Hideki Yamagishi | | |
54
|
| | Chief Executive Officer, Japan | |
David Korunić | | |
55
|
| | Chief Executive Officer, Thailand | |
| | |
Shares Beneficially Owned
Immediately Before the Completion of this Offering |
| |
Shares Beneficially Owned After this Offering
|
| |||||||||||||||||||||
Name and Address of
Beneficial Owner |
| |
Number of
ordinary shares† |
| |
% of total
ordinary shares† |
| |
Number of
Class A ordinary shares |
| |
% of
Class A ordinary shares |
| |
Number of
Class B ordinary shares |
| |
% of
Class B ordinary shares |
| |
% of total
ordinary shares** |
| |
% of total
voting power** |
| |||
Principal Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PCGI Holdings Limited(1)
|
| | | | 648,885,240 | | | |
72.7%
|
| | | | | | | | | | | | | | | | | | |
Swiss Re Principal Investments Company Asia Pte. Ltd.(2)
|
| | | | 100,958,902 | | | |
11.3%
|
| | | | | | | | | | | | | | | | | | |
Fornax Investment Global Company Limited(3)
|
| | | | 102,088,572 | | | |
11.4%
|
| | | | | | | | | | | | | | | | | | |
Directors and Executive Officers†† | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Li Tzar Kai, Richard(4)
|
| | | | 750,973,812 | | | |
84.1%
|
| | | | | | | | | | | | | | | | | | |
Huynh Thanh Phong(5)†††
|
| | | | 15,516,207 | | | |
1.7%
|
| | | | | | | | | | | | | | | | | | |
Ronald Arculli†††
|
| | | | * | | | |
*
|
| | | | | | | | | | | | | | | | | | |
Yijia Tiong***
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Chung Kit Hung, Martina***†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Dirk Sluimers***†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
John Baird***†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Guido Fürer
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Walter Kielholz
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Kyoko Hattori***†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Si-Hang Ma, Frederick***†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Jon Nielsen†††
|
| | | | * | | | |
*
|
| | | | | | | | | | | | | | | | | | |
Simeon Preston†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Binayak Dutta†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Lau Chi Kin, Ken†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Boon-Kee Tan†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Lee Murphy†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
Peter Grimes†††
|
| | | | * | | | |
*
|
| | | | | | | | | | | | | | | | | | |
Hideki Yamagishi†††
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
David Koruni憆†
|
| | | | — | | | |
—
|
| | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers as
a Group |
| | | | 768,570,079 | | | |
86.1%
|
| | | | | | | | | | | | | | | | | | |
Purchaser
|
| |
Date of Issuance
|
| |
Number of
Securities |
| |
Consideration
|
| |
Underwriting Discount
and Commission |
|
Li Tzar Kai, Richard
|
| |
December 17, 2020
|
| | 18,486,640 | | | US$0 | | | Not applicable | |
PCGI Holdings Limited
|
| | May 13, 2021 | | | 2,142,858 | | | US$600,000,240 | | | Not applicable | |
Underwriters
|
| |
Number of ADSs
|
|
Morgan Stanley & Co. LLC
|
| | | |
Goldman Sachs (Asia) L.L.C.
|
| | | |
J.P. Morgan Securities LLC
|
| | | |
HSBC Securities (USA) Inc.
|
| | | |
CMB International Capital Limited
|
| | | |
SMBC Nikko Securities America, Inc.
|
| | | |
CCB International Capital Limited
|
| | | |
Total | | | | |
| | |
Per ADS
|
| |
Total
|
| ||||||||||||||||||
| | |
Without
Option to Purchase Additional ADSs |
| |
With
Option to Purchase Additional ADSs |
| |
Without
Option to Purchase Additional ADSs |
| |
With
Option to Purchase Additional ADSs |
| ||||||||||||
Public offering price
|
| | | US$ | | | | | US$ | | | | | US$ | | | | | US$ | | | ||||
Underwriting discounts and commissions
paid by us |
| | | US$ | | | | | US$ | | | | | US$ | | | | | US$ | | | ||||
Proceeds to us, before expenses
|
| | | US$ | | | | | US$ | | | | | US$ | | | | | US$ | | | |
|
SEC registration fee
|
| |
US$ *
|
| |||
|
NYSE listing fee
|
| | | | * | | |
|
Financial Industry Regulatory Authority filing fee
|
| | | | * | | |
|
Printing and engraving expenses
|
| | | | * | | |
|
Legal fees and expenses
|
| | | | * | | |
|
Accounting fees and expenses
|
| | | | * | | |
|
Miscellaneous
|
| | | | * | | |
|
Total
|
| |
US$ *
|
|
| | |
As at December 31,
|
| |
Change during 2019
(% Dec 31, 2018 results) |
| |
Change during 2020
(% Dec 31, 2019 results) |
| |||||||||||||||||||||||||||||||||
Embedded value
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
CER basis
|
| |
AER basis
|
| |
CER basis
|
| |
AER basis
|
| |||||||||||||||||||||
Gross of financing | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Group EV
|
| | | | 4,366 | | | | | | 6,933 | | | | | | 9,102 | | | | | | 55.7% | | | | | | 58.8% | | | | | | 30.3% | | | | | | 31.3% | | |
—ANW
|
| | | | 2,376 | | | | | | 4,327 | | | | | | 5,799 | | | | | | 79.3% | | | | | | 82.1% | | | | | | 33.4% | | | | | | 34.0% | | |
—VIF
|
| | | | 1,990 | | | | | | 2,606 | | | | | | 3,303 | | | | | | 27.8% | | | | | | 31.0% | | | | | | 25.3% | | | | | | 26.8% | | |
Net of financing | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Group EV
|
| | | | 2,666 | | | | | | 1,463 | | | | | | 3,761 | | | | | | (46.8)% | | | | | | (45.1)% | | | | | | 148.3% | | | | | | 157.1% | | |
—ANW
|
| | | | 676 | | | | | | (1,143) | | | | | | 458 | | | | | | (260.4)% | | | | | | (269.1)% | | | | | | (140.8)% | | | | | | (140.1)% | | |
—VIF
|
| | | | 1,990 | | | | | | 2,606 | | | | | | 3,303 | | | | | | 27.8% | | | | | | 31.0% | | | | | | 25.3% | | | | | | 26.8% | | |
| | |
As at December 31,
|
| |
Change during 2019
(% Dec 31, 2018 results) |
| |
Change during 2020
(%Dec 31, 2019 results) |
| |||||||||||||||||||||||||||||||||
EV equity
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
CER basis
|
| |
AER basis
|
| |
CER basis
|
| |
AER basis
|
| |||||||||||||||||||||
Group EV (gross of financing)
|
| | | | 4,366 | | | | | | 6,933 | | | | | | 9,102 | | | | | | 55.7% | | | | | | 58.8% | | | | | | 30.3% | | | | | | 31.3% | | |
Plus: Goodwill and other intangible
assets |
| | | | 1,610 | | | | | | 3,382 | | | | | | 3,349 | | | | | | 102.6% | | | | | | 110.1% | | | | | | (0.5)% | | | | | | (1.0)% | | |
EV equity (gross of financing)
|
| | | | 5,975 | | | | | | 10,315 | | | | | | 12,451 | | | | | | 68.5% | | | | | | 72.6% | | | | | | 20.3% | | | | | | 20.7% | | |
EV equity (net of financing)
|
| | | | 4,275 | | | | | | 4,845 | | | | | | 7,110 | | | | | | 9.6% | | | | | | 13.3% | | | | | | 45.7% | | | | | | 46.8% | | |
| | |
Year Ending December 31,
|
| |
YoY change in 2019
|
| |
YoY change in 2020
|
| |||||||||||||||||||||||||||||||||
New business value
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
CER basis
|
| |
AER basis
|
| |
CER basis
|
| |
AER basis
|
| |||||||||||||||||||||
VNB
|
| | | | 648 | | | | | | 498 | | | | | | 617 | | | | | | (24.2)% | | | | | | (23.2)% | | | | | | 22.4% | | | | | | 24.0% | | |
NB APE
|
| | | | 1,055 | | | | | | 1,125 | | | | | | 1,692 | | | | | | 5.2% | | | | | | 6.6% | | | | | | 49.3% | | | | | | 50.4% | | |
PVNBP
|
| | | | 5,501 | | | | | | 5,915 | | | | | | 10,160 | | | | | | 6.3% | | | | | | 7.5% | | | | | | 70.1% | | | | | | 71.8% | | |
VNB margin (VNB / NB APE)
|
| | | | 61.4% | | | | | | 44.2% | | | | | | 36.5% | | | |
(17.2) pps
|
| |
(17.2) pps
|
| |
(8.0) pps
|
| |
(7.7) pps
|
| ||||||||||||
VNB margin (VNB / PVNBP)
|
| | | | 11.8% | | | | | | 8.4% | | | | | | 6.1% | | | |
(3.4) pps
|
| |
(3.4) pps
|
| |
(2.4) pps
|
| |
(2.3) pps
|
|
| | |
Year Ending December 31,
|
| |
YoY change in 2019
|
| |
YoY change in 2020
|
| |||||||||||||||||||||||||||||||||
EV operating profits
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
CER basis
|
| |
AER basis
|
| |
CER basis
|
| |
AER basis
|
| |||||||||||||||||||||
Before expense and commission variance
|
| | | | 822 | | | | | | 772 | | | | | | 1,010 | | | | | | (7.3)% | | | | | | (6.1)% | | | | | | 29.6% | | | | | | 30.7% | | |
After expense and commission variance
|
| | | | 680 | | | | | | 555 | | | | | | 770 | | | | | | (19.7)% | | | | | | (18.4)% | | | | | | 37.3% | | | | | | 38.8% | | |
Free surplus generation
|
| |
2018
|
| |
2019
|
| |
2020
|
| |
CER basis
|
| |
AER basis
|
| |
CER basis
|
| |
AER basis
|
| |||||||||||||||||||||
Underlying free surplus generation
|
| | | | 146 | | | | | | 597 | | | | | | 654 | | | | | | 311.7% | | | | | | 309.2% | | | | | | 9.4% | | | | | | 9.4% | | |
Net underlying free surplus generation
|
| | | | (92) | | | | | | 182 | | | | | | 248 | | | | | | (295.3)%(1) | | | | | | (297.5)%(1) | | | | | | 36.8% | | | | | | 36.0% | | |
Business Units
|
| |
Results
|
| |
Required Capital
|
|
FWD HK | | | All | | | 150% of required minimum solvency margin | |
FWD Japan | | | All | | |
600% of regulatory risk-based capital requirement for FWD Fuji Life
400% of regulatory risk-based capital requirement for FWD Reinsurance
|
|
FWD Thailand | | |
2019 EV, 2020 EV,
2020 VNB |
| | 120% and 140% of regulatory risk-based capital requirement for 2020-2021 and 2022 onwards respectively (RBC 2) | |
| | | All other results | | |
140% of regulatory risk-based capital requirement (RBC 1)
|
|
FWD Indonesia | | | All | | | 120% of regulatory risk-based capital requirement | |
FWD Malaysia | | | All | | | 195% of regulatory risk-based capital requirement | |
FWD Philippines | | |
2020 EV, 2020 VNB
|
| | 100% of regulatory risk-based capital requirement for 2020, 125% thereafter | |
| | | All other results | | | 125% of regulatory risk-based capital requirement | |
FWD Singapore | | |
2020 EV, 2020 VNB
|
| |
135% of regulatory risk-based capital requirement (RBC 2)
|
|
| | | All other results | | |
180% of regulatory risk-based capital requirement (RBC 1)
|
|
FWD Vietnam | | | All | | | 100% of required minimum solvency margin | |
| | |
Risk discount rates
|
| |
Current market 10-year Government Bond Yields
|
| ||||||||||||||||||||||||||||||
Business Units
|
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| ||||||||||||||||||
FWD HK
|
| | | | 7.50% | | | | | | 7.25% | | | | | | 7.20% | | | |
2.69% (USD);
2.03% (HKD) |
| |
1.92% (USD);
1.79% (HKD) |
| |
0.93% (USD);
0.74% (HKD) |
| |||||||||
FWD Japan
|
| | | | 6.00% | | | | | | 6.00% | | | | | | 6.00% | | | | | | 0.00% | | | | | | (0.02)% | | | | | | 0.02% | | |
FWD Thailand
|
| | | | 9.05% | | | | | | 8.80% | | | | | | 8.30% | | | | | | 2.51% | | | | | | 1.49% | | | | | | 1.28% | | |
FWD Indonesia
|
| | | | 14.00% | | | | | | 14.00% | | | | | | 14.00% | | | | | | 8.00% | | | | | | 7.05% | | | | | | 5.94% | | |
FWD Malaysia
|
| | | | NA | | | | | | 9.00% | | | | | | 9.00% | | | | | | 4.10% | | | | | | 3.32% | | | | | | 2.68% | | |
FWD Philippines
|
| | | | 12.00% | | | | | | 12.00% | | | | | | 12.00% | | | | | | 7.05% | | | | | | 4.48% | | | | | | 2.99% | | |
FWD Singapore
|
| | | | 7.50% | | | | | | 7.50% | | | | | | 7.00% | | | | | | 2.04% | | | | | | 1.74% | | | | | | 0.84% | | |
FWD Vietnam
|
| | | | 13.00% | | | | | | 12.50% | | | | | | 11.50% | | | | | | 5.17% | | | | | | 3.38% | | | | | | 2.45% | | |
Group Office expense adjustments
|
| | | | 7.50% | | | | | | 7.25% | | | | | | 7.20% | | | | | | NA | | | | | | NA | | | | | | NA | | |
| | |
Long Term 10-Year Government Bond Yields
|
| |
Local Equity Returns
|
| ||||||||||||||||||||||||||||||
Business Units
|
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| ||||||||||||||||||
FWD HK
|
| |
3.00% (USD);
2.50% (HKD) |
| |
2.75% (USD);
2.25% (HKD) |
| |
2.40% (USD);
1.90% (HKD) |
| | | | 8.00% | | | | | | 7.75% | | | | | | 7.40% | | | |||||||||
FWD Japan
|
| | | | 0.25% | | | | | | 0.25% | | | | | | 0.25% | | | | | | 5.30% | | | | | | 5.30% | | | | | | 5.30% | | |
FWD Thailand
|
| | | | 3.50% | | | | | | 3.25% | | | | | | 2.75% | | | | | | 9.30% | | | |
9.05%
(9.00% for SCB Life) |
| | | | 8.50% | | | |||
FWD Indonesia
|
| | | | 7.50% | | | | | | 7.50% | | | | | | 7.50% | | | | | | 12.50% | | | | | | 12.00% | | | | | | 11.70% | | |
FWD Malaysia
|
| | | | NA | | | | | | 4.00% | | | | | | 4.00% | | | | | | NA | | | | | | 8.46% | | | | | | 8.10% | | |
FWD Philippines
|
| | | | 4.75% | | | | | | 4.75% | | | | | | 4.75% | | | | | | 9.74% | | | | | | 9.74% | | | | | | 9.74% | | |
FWD Singapore
|
| | | | 2.75% | | | | | | 2.75% | | | | | | 2.25% | | | | | | NA | | | | | | NA | | | | | | NA | | |
FWD Vietnam
|
| | | | 6.00% | | | | | | 5.50% | | | | | | 4.50% | | | | | | 11.20% | | | | | | 11.20% | | | | | | 10.20% | | |
Group Office expense adjustments
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | |
Region
|
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
Hong Kong
|
| | | | (33) | | | | | | (24) | | | | | | (59) | | |
Japan
|
| | | | (102) | | | | | | (62) | | | | | | (35) | | |
Thailand
|
| | | | (29) | | | | | | (91) | | | | | | (27) | | |
Emerging Markets
|
| | | | (217) | | | | | | (244) | | | | | | (131) | | |
Total | | | | | (380) | | | | | | (422) | | | | | | (252) | | |
| | |
Present value of maintenance expense overruns
allowed for within the VIF (after tax) |
| |||||||||||||||
Region
|
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
Hong Kong
|
| | | | (32) | | | | | | (35) | | | | | | (7) | | |
Japan
|
| | | | (44) | | | | | | (13) | | | | | | (8) | | |
Thailand
|
| | | | (12) | | | | | | (95) | | | | | | (24) | | |
Emerging Markets
|
| | | | (37) | | | | | | (32) | | | | | | (26) | | |
Total | | | | | (124) | | | | | | (176) | | | | | | (65) | | |
Region
|
| |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Hong Kong
|
| | | | (40) | | | | | | (53) | | | | | | (49) | | |
Japan
|
| | | | (24) | | | | | | (52) | | | | | | (47) | | |
Thailand
|
| | | | 2 | | | | | | (23) | | | | | | (47) | | |
Emerging Markets
|
| | | | (80) | | | | | | (90) | | | | | | (96) | | |
Total | | | | | (142) | | | | | | (218) | | | | | | (240) | | |
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Acquisition expense variance
|
| | | | (143) | | | | | | (192) | | | | | | (173) | | |
Commission related expense variance
|
| | | | 5 | | | | | | (18) | | | | | | (26) | | |
Maintenance expense variance
|
| | | | (3) | | | | | | (7) | | | | | | (40) | | |
Operating expense and commission variance
|
| | | | (142) | | | | | | (218) | | | | | | (240) | | |
Region
|
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
Unallocated Group Office expenses
|
| | | | (449) | | | | | | (483) | | | | | | (554) | | |
Business Units
|
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
FWD HK
|
| | | | 2.3% | | | | | | 2.3% | | | | | | 2.3% | | |
FWD Japan
|
| | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | |
FWD Thailand
|
| | | | 3.0% | | | |
2.5% (2.0% for
SCB Life Business) |
| | | | 2.0% | | | |||
FWD Indonesia
|
| | | | 3.5% | | | | | | 3.5% | | | | | | 3.5% | | |
FWD Malaysia
|
| | | | NA | | | | | | 3.0% | | | | | | 3.0% | | |
FWD Philippines
|
| | | | 3.0% | | | | | | 3.0% | | | | | | 3.0% | | |
FWD Singapore
|
| | | | 3.0% | | | | | | 3.0% | | | | | | 3.0% | | |
FWD Vietnam
|
| | | | 7.0% | | | | | | 7.0% | | | | | | 7.0% | | |
Business Units
|
| |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
FWD HK
|
| | | | 16.5% | | | | | | 16.5% | | | | | | 16.5% | | |
FWD Japan
|
| | | | 28.0% | | | | | | 28.0% | | | | | | 28.0% | | |
FWD Thailand
|
| | | | 20.0% | | | | | | 20.0% | | | | | | 20.0% | | |
FWD Indonesia14
|
| | | | 25.0% | | | | | | 25.0% | | | |
22.0% for 2020
and 2021, 20.0% thereafter |
| |||
FWD Malaysia
|
| | | | NA | | | | | | 24.0% | | | | | | 24.0% | | |
FWD Philippines15
|
| | | | 2.0% | | | | | | 2.0% | | | | | | 2.0% | | |
FWD Singapore
|
| | | | 17.0% | | | | | | 17.0% | | | | | | 17.0% | | |
FWD Vietnam
|
| | | | 20.0%(1) | | | | | | 20.0%(2) | | | | | | 20.0%(2) | | |
| | |
As at Dec 31, 2018
|
| |
As at Dec 31, 2019
|
| |
As at Dec 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| |||||||||||||||||||||||||||
Operating entity EV
|
| | | | 1,812 | | | | | | 2,439 | | | | | | 4,251 | | | | | | 3,960 | | | | | | 3,088 | | | | | | 7,048 | | | | | | 4,622 | | | | | | 3,857 | | | | | | 8,479 | | |
Plus: Corporate & Other net assets
|
| | | | 564 | | | | | | — | | | | | | 564 | | | | | | 368 | | | | | | — | | | | | | 368 | | | | | | 1,176 | | | | | | — | | | | | | 1,176 | | |
Less: Unallocated Group Office expenses
|
| | | | — | | | | | | (449) | | | | | | (449) | | | | | | — | | | | | | (483) | | | | | | (483) | | | | | | — | | | | | | (554) | | | | | | (554) | | |
Group EV (gross of financing)
|
| | | | 2,376 | | | | | | 1,990 | | | | | | 4,366 | | | | | | 4,327 | | | | | | 2,606 | | | | | | 6,933 | | | | | | 5,799 | | | | | | 3,303 | | | | | | 9,102 | | |
Less: Financing
|
| | | | (1,700) | | | | | | — | | | | | | (1,700) | | | | | | (5,470) | | | | | | — | | | | | | (5,470) | | | | | | (5,341) | | | | | | — | | | | | | (5,341) | | |
Group EV (net of financing)
|
| | | | 676 | | | | | | 1,990 | | | | | | 2,666 | | | | | | (1,143) | | | | | | 2,606 | | | | | | 1,463 | | | | | | 458 | | | | | | 3,303 | | | | | | 3,761 | | |
| | |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
Borrowings (1)16
|
| | | | (593) | | | | | | (3,598) | | | | | | (3,457) | | |
Intercompany perpetual securities (2)
|
| | | | (110) | | | | | | (264) | | | | | | (276) | | |
External perpetual securities (3)
|
| | | | (997) | | | | | | (1,608) | | | | | | (1,607) | | |
Total financing (4) = (1) + (2) + (3)
|
| | | | (1,700) | | | | | | (5,470) | | | | | | (5,341) | | |
| | |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
Group EV (gross of financing)
|
| | | | 4,366 | | | | | | 6,933 | | | | | | 9,102 | | |
Plus: Goodwill and other intangible assets
|
| | | | 1,610 | | | | | | 3,382 | | | | | | 3,349 | | |
EV equity (gross of financing)
|
| | | | 5,975 | | | | | | 10,315 | | | | | | 12,451 | | |
Less: Financing
|
| | | | | | | | | | | | | | | | | | |
—Borrowings
|
| | | | (593) | | | | | | (3,598) | | | | | | (3,457) | | |
—Perpetual securities
|
| | | | (1,107) | | | | | | (1,872) | | | | | | (1,883) | | |
EV equity (net of financing)
|
| | | | 4,275 | | | | | | 4,845 | | | | | | 7,110 | | |
| | |
As at
Dec 31, 2018 |
| |
As at
Dec 31, 2019 |
| |
As at
Dec 31, 2020 |
| |||||||||
IFRS equity attributable to shareholders after PCGI
adjustment (1)17 |
| | | | 4,022 | | | | | | 5,554 | | | | | | 8,218 | | |
Elimination of IFRS deferred acquisition and origination costs assets (2)
|
| | | | (2,746) | | | | | | (3,767) | | | | | | (4,591) | | |
Difference between IFRS and local statutory asset and liability items (3)
|
| | | | 2,004 | | | | | | 1,980 | | | | | | 2,024 | | |
Difference between net IFRS and local statutory asset and liability items (4) = (2) + (3)
|
| | | | (742) | | | | | | (1,786) | | | | | | (2,566) | | |
Mark-to-market adjustment for property and mortgage loan investments, net of amounts attributable to participating funds (5)
|
| | | | 31 | | | | | | 128 | | | | | | (128) | | |
Elimination of intangible assets (6)
|
| | | | (1,671) | | | | | | (3,487) | | | | | | (3,531) | | |
Recognition of deferred tax impacts of the above adjustments (7)
|
| | | | 33 | | | | | | 78 | | | | | | 80 | | |
Recognition of non-controlling interest impacts of the above adjustments (8)
|
| | | | (0) | | | | | | (21) | | | | | | (7) | | |
Elimination of external perpetual securities (9)
|
| | | | (997) | | | | | | (1,608) | | | | | | (1,607) | | |
ANW (net of financing) (10) = (1) + (4) + (5) + (6) + (7) + (8) + (9)
|
| | | | 676 | | | | | | (1,143) | | | | | | 458 | | |
| | |
As at Dec 31, 2018
|
| |
As at Dec 31, 2019
|
| |
As at Dec 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Op.
Entity |
| |
Corp. &
others |
| |
Total
|
| |
Op.
Entity |
| |
Corp. &
others |
| |
Total
|
| |
Op.
Entity |
| |
Corp. &
others |
| |
Total
|
| |||||||||||||||||||||||||||
Free surplus
|
| | | | 682 | | | | | | 564 | | | | | | 1,246 | | | | | | 2,397 | | | | | | 368 | | | | | | 2,765 | | | | | | 2,879 | | | | | | 1,176 | | | | | | 4,055 | | |
Required capital
|
| | | | 1,130 | | | | | | — | | | | | | 1,130 | | | | | | 1,562 | | | | | | — | | | | | | 1,562 | | | | | | 1,744 | | | | | | — | | | | | | 1,744 | | |
Less: Financing
|
| | | | — | | | | | | (1,700) | | | | | | (1,700) | | | | | | — | | | | | | (5,470) | | | | | | (5,470) | | | | | | — | | | | | | (5,341) | | | | | | (5,341) | | |
ANW (net of financing)
|
| | | | 1,812 | | | | | | (1,136) | | | | | | 676 | | | | | | 3,960 | | | | | | (5,103) | | | | | | (1,143) | | | | | | 4,622 | | | | | | (4,164) | | | | | | 458 | | |
| | |
As at Dec 31, 2019
|
| |
As at Dec 31, 2020
|
| ||||||||||||||||||
Expected period of emergence
|
| |
Undiscounted
|
| |
Discounted
|
| |
Undiscounted
|
| |
Discounted
|
| ||||||||||||
1 – 5 years
|
| | | | 887 | | | | | | 676 | | | | | | 747 | | | | | | 498 | | |
6 – 10 years
|
| | | | 2,297 | | | | | | 1,273 | | | | | | 2,900 | | | | | | 1,664 | | |
11 – 15 years
|
| | | | 2,229 | | | | | | 889 | | | | | | 2,699 | | | | | | 1,117 | | |
16 – 20 years
|
| | | | 1,554 | | | | | | 458 | | | | | | 1,984 | | | | | | 596 | | |
21 years and thereafter
|
| | | | 14,208 | | | | | | 872 | | | | | | 17,823 | | | | | | 1,171 | | |
Total
|
| | | | 21,175 | | | | | | 4,168 | | | | | | 26,153 | | | | | | 5,047 | | |
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
NB APE
|
| |
PVNBP
|
| |
VNB
|
| |
NB APE
|
| |
PVNBP
|
| |
VNB
|
| |
NB APE
|
| |
PVNBP
|
| |
VNB
|
| |||||||||||||||||||||||||||
Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
—Onshore
|
| | | | 195 | | | | | | 1,140 | | | | | | 71 | | | | | | 224 | | | | | | 1,253 | | | | | | 90 | | | | | | 281 | | | | | | 2,354 | | | | | | 146 | | |
—Offshore
|
| | | | 172 | | | | | | 953 | | | | | | 59 | | | | | | 207 | | | | | | 1,050 | | | | | | 81 | | | | | | 91 | | | | | | 350 | | | | | | 21 | | |
Sub-total
|
| | | | 367 | | | | | | 2,093 | | | | | | 130 | | | | | | 431 | | | | | | 2,303 | | | | | | 170 | | | | | | 372 | | | | | | 2,704 | | | | | | 167 | | |
Japan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
—COLI
|
| | | | 320 | | | | | | 1,884 | | | | | | 363 | | | | | | 176 | | | | | | 1,024 | | | | | | 134 | | | | | | 149 | | | | | | 825 | | | | | | 38 | | |
—RI
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | 236 | | | | | | 1,897 | | | | | | 56 | | |
—Individual
|
| | | | 47 | | | | | | 361 | | | | | | 45 | | | | | | 95 | | | | | | 777 | | | | | | 76 | | | | | | 123 | | | | | | 971 | | | | | | 95 | | |
Sub-total
|
| | | | 367 | | | | | | 2,245 | | | | | | 408 | | | | | | 270 | | | | | | 1,801 | | | | | | 210 | | | | | | 507 | | | | | | 3,693 | | | | | | 188 | | |
Thailand | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
—TMB
|
| | | | 150 | | | | | | 536 | | | | | | 56 | | | | | | 139 | | | | | | 680 | | | | | | 34 | | | | | | 86 | | | | | | 342 | | | | | | 20 | | |
—SCB
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | 57 | | | | | | 263 | | | | | | 11 | | | | | | 434 | | | | | | 2,122 | | | | | | 127 | | |
—Others
|
| | | | 57 | | | | | | 174 | | | | | | 15 | | | | | | 71 | | | | | | 317 | | | | | | 21 | | | | | | 96 | | | | | | 434 | | | | | | 36 | | |
Sub-total
|
| | | | 207 | | | | | | 710 | | | | | | 72 | | | | | | 266 | | | | | | 1,260 | | | | | | 65 | | | | | | 616 | | | | | | 2,898 | | | | | | 183 | | |
Emerging Markets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions & partnerships / Discontinued business
|
| | | | 7 | | | | | | 50 | | | | | | 2 | | | | | | 23 | | | | | | 53 | | | | | | 3 | | | | | | 49 | | | | | | 254 | | | | | | 19 | | |
—Others
|
| | | | 107 | | | | | | 404 | | | | | | 36 | | | | | | 134 | | | | | | 498 | | | | | | 49 | | | | | | 147 | | | | | | 611 | | | | | | 60 | | |
Sub-total
|
| | | | 114 | | | | | | 453 | | | | | | 38 | | | | | | 157 | | | | | | 550 | | | | | | 52 | | | | | | 197 | | | | | | 864 | | | | | | 79 | | |
Total | | | | | 1,055 | | | | | | 5,501 | | | | | | 648 | | | | | | 1,125 | | | | | | 5,915 | | | | | | 498 | | | | | | 1,692 | | | | | | 10,160 | | | | | | 617 | | |
| | |
NB APE
|
| |||||||||||||||||||||||||||||||||
| | |
CER basis
|
| |
AER basis
|
| ||||||||||||||||||||||||||||||
| | |
2018-2019
CAGR |
| |
2019-2020
CAGR |
| |
2018-2020
CAGR |
| |
2018-2019
CAGR |
| |
2019-2020
CAGR |
| |
2018-2020
CAGR |
| ||||||||||||||||||
Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Onshore
|
| | | | 14.9% | | | | | | 25.5% | | | | | | 20.1% | | | | | | 14.9% | | | | | | 25.5% | | | | | | 20.1% | | |
Offshore
|
| | | | 20.2% | | | | | | (56.2%) | | | | | | (27.4%) | | | | | | 20.2% | | | | | | (56.2%) | | | | | | (27.4%) | | |
Sub-total
|
| | | | 17.4% | | | | | | (13.7%) | | | | | | 0.6% | | | | | | 17.4% | | | | | | (13.7%) | | | | | | 0.6% | | |
Japan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
COLI
|
| | | | (45.8%) | | | | | | (17.0%) | | | | | | (32.9%) | | | | | | (45.1%) | | | | | | (15.5%) | | | | | | (31.9%) | | |
RI
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | |
Individual
|
| | | | 98.4% | | | | | | 27.4% | | | | | | 59.0% | | | | | | 101.0% | | | | | | 30.2% | | | | | | 61.8% | | |
Sub-total
|
| | | | (27.3%) | | | | | | 82.1% | | | | | | 15.0% | | | | | | (26.4%) | | | | | | 87.7% | | | | | | 17.6% | | |
Thailand | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TMB
|
| | | | (11.5%) | | | | | | (37.6%) | | | | | | (25.7%) | | | | | | (7.8%) | | | | | | (38.2%) | | | | | | (24.5%) | | |
SCB
|
| | | | NA | | | | | | 669.0% | | | | | | NA | | | | | | NA | | | | | | 661.8% | | | | | | NA | | |
Others
|
| | | | 19.8% | | | | | | 36.7% | | | | | | 28.0% | | | | | | 24.8% | | | | | | 36.0% | | | | | | 30.3% | | |
Sub-total
|
| | | | 23.5% | | | | | | 133.2% | | | | | | 69.7% | | | | | | 28.6% | | | | | | 131.2% | | | | | | 72.4% | | |
Emerging Markets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions & partnerships / Discontinued business
|
| | | | 244.2% | | | | | | 114.1% | | | | | | 170.6% | | | | | | 240.4% | | | | | | 111.2% | | | | | | 168.1% | | |
Others
|
| | | | 24.5% | | | | | | 8.0% | | | | | | 15.9% | | | | | | 25.5% | | | | | | 10.1% | | | | | | 17.5% | | |
Sub-total
|
| | | | 37.5% | | | | | | 23.3% | | | | | | 30.0% | | | | | | 38.5% | | | | | | 25.1% | | | | | | 31.6% | | |
Total
|
| | | | 5.2% | | | | | | 49.3% | | | | | | 25.1% | | | | | | 6.6% | | | | | | 50.4% | | | | | | 26.6% | | |
| | |
VNB
|
| |||||||||||||||||||||||||||||||||
| | |
CER basis
|
| |
AER basis
|
| ||||||||||||||||||||||||||||||
| | |
2018-2019
CAGR |
| |
2019-2020
CAGR |
| |
2018-2020
CAGR |
| |
2018-2019
CAGR |
| |
2019-2020
CAGR |
| |
2018-2020
CAGR |
| ||||||||||||||||||
Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Onshore
|
| | | | 26.2% | | | | | | 62.8% | | | | | | 43.3% | | | | | | 26.2% | | | | | | 62.8% | | | | | | 43.3% | | |
Offshore
|
| | | | 36.7% | | | | | | (73.9%) | | | | | | (40.3%) | | | | | | 36.7% | | | | | | (73.9%) | | | | | | (40.3%) | | |
Sub-total
|
| | | | 30.9% | | | | | | (1.8%) | | | | | | 13.4% | | | | | | 30.9% | | | | | | (1.8%) | | | | | | 13.4% | | |
Japan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
COLI
|
| | | | (63.6%) | | | | | | (72.6%) | | | | | | (68.4%) | | | | | | (63.1%) | | | | | | (72.0%) | | | | | | (67.9%) | | |
RI
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | |
Individual
|
| | | | 65.9% | | | | | | 21.6% | | | | | | 42.0% | | | | | | 68.0% | | | | | | 24.6% | | | | | | 44.7% | | |
Sub-total
|
| | | | (49.2%) | | | | | | (13.0%) | | | | | | (33.5%) | | | | | | (48.6%) | | | | | | (10.4%) | | | | | | (32.1%) | | |
Thailand | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TMB
|
| | | | (41.6%) | | | | | | (41.6%) | | | | | | (41.6%) | | | | | | (39.2%) | | | | | | (42.1%) | | | | | | (40.7%) | | |
SCB
|
| | | | NA | | | | | | 1,112.5% | | | | | | NA | | | | | | NA | | | | | | 1,100.8% | | | | | | NA | | |
Others
|
| | | | 28.5% | | | | | | 75.8% | | | | | | 50.3% | | | | | | 33.7% | | | | | | 75.1% | | | | | | 53.0% | | |
Sub-total
|
| | | | (12.3%) | | | | | | 182.2% | | | | | | 57.3% | | | | | | (8.7%) | | | | | | 179.8% | | | | | | 59.8% | | |
Emerging Markets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions & partnerships / Discontinued business
|
| | | | 30.3% | | | | | | 512.9% | | | | | | 179.7% | | | | | | 28.9% | | | | | | 498.7% | | | | | | 177.8% | | |
Others
|
| | | | 35.2% | | | | | | 20.5% | | | | | | 27.5% | | | | | | 36.5% | | | | | | 23.4% | | | | | | 29.8% | | |
Sub-total
|
| | | | 34.9% | | | | | | 49.1% | | | | | | 41.6% | | | | | | 36.0% | | | | | | 52.2% | | | | | | 43.9% | | |
Total
|
| | | | (24.2%) | | | | | | 22.4% | | | | | | (4.0%) | | | | | | (23.2%) | | | | | | 24.0% | | | | | | (2.4%) | | |
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||||||||||||||||||||
| | |
VNB/NB
APE |
| |
VNB/ PVNBP
|
| |
VNB/NB
APE |
| |
VNB/ PVNBP
|
| |
VNB/NB
APE |
| |
VNB/ PVNBP
|
| ||||||||||||||||||
Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
—Onshore
|
| | | | 36.6% | | | | | | 6.3% | | | | | | 40.2% | | | | | | 7.2% | | | | | | 52.1% | | | | | | 6.2% | | |
—Offshore
|
| | | | 34.2% | | | | | | 6.2% | | | | | | 38.9% | | | | | | 7.7% | | | | | | 23.1% | | | | | | 6.0% | | |
Sub-total
|
| | | | 35.5% | | | | | | 6.2% | | | | | | 39.6% | | | | | | 7.4% | | | | | | 45.0% | | | | | | 6.2% | | |
Japan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
—COLI
|
| | | | 113.4% | | | | | | 19.3% | | | | | | 76.2% | | | | | | 13.1% | | | | | | 25.3% | | | | | | 4.5% | | |
—RI
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | 23.7% | | | | | | 2.9% | | |
—Individual
|
| | | | 96.3% | | | | | | 12.6% | | | | | | 80.5% | | | | | | 9.8% | | | | | | 77.1% | | | | | | 9.8% | | |
Sub-total
|
| | | | 111.2% | | | | | | 18.2% | | | | | | 77.7% | | | | | | 11.7% | | | | | | 37.1% | | | | | | 5.1% | | |
Thailand | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
—TMB
|
| | | | 37.3% | | | | | | 10.5% | | | | | | 24.6% | | | | | | 5.0% | | | | | | 23.1% | | | | | | 5.8% | | |
—SCB
|
| | | | NA | | | | | | NA | | | | | | 18.6% | | | | | | 4.0% | | | | | | 29.3% | | | | | | 6.0% | | |
—Others
|
| | | | 27.1% | | | | | | 8.9% | | | | | | 29.1% | | | | | | 6.5% | | | | | | 37.4% | | | | | | 8.3% | | |
Sub-total
|
| | | | 34.5% | | | | | | 10.1% | | | | | | 24.5% | | | | | | 5.2% | | | | | | 29.7% | | | | | | 6.3% | | |
Emerging Markets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
—Acquisitions & partnerships / Discontinued business
|
| | | | 35.5% | | | | | | 4.9% | | | | | | 13.4% | | | | | | 6.0% | | | | | | 38.1% | | | | | | 7.4% | | |
—Others
|
| | | | 33.4% | | | | | | 8.8% | | | | | | 36.3% | | | | | | 9.8% | | | | | | 40.7% | | | | | | 9.8% | | |
Sub-total
|
| | | | 33.5% | | | | | | 8.4% | | | | | | 32.9% | | | | | | 9.4% | | | | | | 40.0% | | | | | | 9.1% | | |
Total
|
| | | | 61.4% | | | | | | 11.8% | | | | | | 44.2% | | | | | | 8.4% | | | | | | 36.5% | | | | | | 6.1% | | |
| | |
Year ending Dec 31, 2018
|
| |
Year ending Dec 31, 2019
|
| |
Year ending Dec 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| |||||||||||||||||||||||||||
Opening EV (1)
|
| | | | 1,914 | | | | | | 1,464 | | | | | | 3,378 | | | | | | 2,376 | | | | | | 1,990 | | | | | | 4,366 | | | | | | 4,327 | | | | | | 2,606 | | | | | | 6,933 | | |
Acquisitions & partnerships / Discontinue
business (2) |
| | | | — | | | | | | — | | | | | | — | | | | | | (1,963) | | | | | | 338 | | | | | | (1,625) | | | | | | (207) | | | | | | 106 | | | | | | (101) | | |
Expected return on EV (3)
|
| | | | 222 | | | | | | 25 | | | | | | 246 | | | | | | 221 | | | | | | 101 | | | | | | 322 | | | | | | 252 | | | | | | 160 | | | | | | 412 | | |
VNB (4)(See note)
|
| | | | — | | | | | | 646 | | | | | | 646 | | | | | | — | | | | | | 498 | | | | | | 498 | | | | | | — | | | | | | 617 | | | | | | 617 | | |
Operating variance and operating assumption change (5) = (6)+(7)
|
| | | | (113) | | | | | | (99) | | | | | | (212) | | | | | | (188) | | | | | | (77) | | | | | | (265) | | | | | | (29) | | | | | | (230) | | | | | | (259) | | |
Operating variance (6)
|
| | | | (139) | | | | | | (4) | | | | | | (142) | | | | | | (211) | | | | | | (53) | | | | | | (264) | | | | | | (185) | | | | | | (115) | | | | | | (300) | | |
Operating assumption change (7)
|
| | | | 26 | | | | | | (95) | | | | | | (69) | | | | | | 23 | | | | | | (24) | | | | | | (1) | | | | | | 156 | | | | | | (115) | | | | | | 41 | | |
Total EV operating profit (8) = (3)+(4)+(5)
|
| | | | 109 | | | | | | 571 | | | | | | 680 | | | | | | 33 | | | | | | 522 | | | | | | 555 | | | | | | 223 | | | | | | 547 | | | | | | 770 | | |
Economic variance and economic assumption change (9) = (10)+(11)
|
| | | | 214 | | | | | | (85) | | | | | | 129 | | | | | | 415 | | | | | | (324) | | | | | | 91 | | | | | | (976) | | | | | | 511 | | | | | | (466) | | |
Economic variance (10)
|
| | | | 199 | | | | | | (165) | | | | | | 35 | | | | | | 417 | | | | | | (155) | | | | | | 262 | | | | | | (975) | | | | | | 571 | | | | | | (404) | | |
Economic assumption change (11)
|
| | | | 15 | | | | | | 80 | | | | | | 95 | | | | | | (2) | | | | | | (170) | | | | | | (171) | | | | | | (1) | | | | | | (61) | | | | | | (62) | | |
Other non-operating variance (12)
|
| | | | (159) | | | | | | 49 | | | | | | (110) | | | | | | (281) | | | | | | 46 | | | | | | (234) | | | | | | 402 | | | | | | (458) | | | | | | (56) | | |
Total EV profit (13)=(8)+(9)+(12)
|
| | | | 164 | | | | | | 535 | | | | | | 699 | | | | | | 167 | | | | | | 244 | | | | | | 411 | | | | | | (351) | | | | | | 600 | | | | | | 249 | | |
Capital movements19 (14)
|
| | | | 498 | | | | | | — | | | | | | 498 | | | | | | 740 | | | | | | — | | | | | | 740 | | | | | | 2,408 | | | | | | — | | | | | | 2,408 | | |
Corporate adjustments (15)
|
| | | | (71) | | | | | | (18) | | | | | | (90) | | | | | | (64) | | | | | | (33) | | | | | | (97) | | | | | | (91) | | | | | | (71) | | | | | | (163) | | |
Financing (16)
|
| | | | (127) | | | | | | — | | | | | | (127) | | | | | | 2,996 | | | | | | — | | | | | | 2,996 | | | | | | (339) | | | | | | — | | | | | | (339) | | |
Foreign exchange movement (17)
|
| | | | (1) | | | | | | 9 | | | | | | 7 | | | | | | 76 | | | | | | 66 | | | | | | 142 | | | | | | 52 | | | | | | 62 | | | | | | 115 | | |
Closing EV (18)=(1)+(2)+(13)+(14)+(15)+(16)+(17)
|
| | | | 2,376 | | | | | | 1,990 | | | | | | 4,366 | | | | | | 4,327 | | | | | | 2,606 | | | | | | 6,933 | | | | | | 5,799 | | | | | | 3,303 | | | | | | 9,102 | | |
| | |
Year ending
Dec 31, 2018 |
| |
Year ending
Dec 31, 2019 |
| |
Year ending
Dec 31, 2020 |
| |||||||||
Non-operating expense variance (1) = (2) + (3) + (4) + (5)
|
| | | | (62) | | | | | | (121) | | | | | | (183) | | |
Mergers and acquisitions, business set and restructure related costs (2)
|
| | | | (48) | | | | | | (73) | | | | | | (117) | | |
IPO related costs including incentive costs (3)
|
| | | | — | | | | | | (2) | | | | | | (39) | | |
Implementation costs for new accounting standards and other mandatory regulatory changes (4)
|
| | | | (5) | | | | | | (17) | | | | | | (26) | | |
Other non-recurring items (5)
|
| | | | (10) | | | | | | (29) | | | | | | (1) | | |
Industrial recruitment packages (6)
|
| | | | (44) | | | | | | (73) | | | | | | (24) | | |
Others(See note) (7)
|
| | | | (4) | | | | | | (41) | | | | | | 151 | | |
Total (8) = (1) + (6) + (7)
|
| | | | (110) | | | | | | (234) | | | | | | (56) | | |
| | |
Year ending
Dec 31, 2018 |
| |
Year ending
Dec 31, 2019 |
| |
Year ending
Dec 31, 2020 |
| |||||||||
EV operating profit after operating expense and commission variance (1)
|
| | | | 680 | | | | | | 555 | | | | | | 770 | | |
Plus: Adjustment to reverse out operating expense and commission variance (2)
|
| | | | 142 | | | | | | 218 | | | | | | 240 | | |
EV operating profit before expense and commission variance (3)=(1)+(2)
|
| | | | 822 | | | | | | 772 | | | | | | 1,010 | | |
| | |
Year ending Dec 31, 2018
|
| |
Year ending Dec 31, 2019
|
| |
Year ending Dec 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Op.
Entity |
| |
Corp. &
others |
| |
Total
|
| |
Op.
Entity |
| |
Corp. &
others |
| |
Total
|
| |
Op.
Entity |
| |
Corp. &
others |
| |
Total
|
| |||||||||||||||||||||||||||
Opening free surplus (1)
|
| | | | 611 | | | | | | 462 | | | | | | 1,073 | | | | | | 682 | | | | | | 564 | | | | | | 1,246 | | | | | | 2,397 | | | | | | 368 | | | | | | 2,765 | | |
Acquisitions & partnerships / Discontinued business (2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 571 | | | | | | (3,094) | | | | | | (2,523) | | | | | | 410 | | | | | | (745) | | | | | | (335) | | |
Underlying free surplus generation (3) = (4)+(5)
|
| | | | 146 | | | | | | — | | | | | | 146 | | | | | | 597 | | | | | | — | | | | | | 597 | | | | | | 654 | | | | | | — | | | | | | 654 | | |
Opening adjustment (4)
|
| | | | 5 | | | | | | — | | | | | | 5 | | | | | | 342 | | | | | | — | | | | | | 342 | | | | | | 292 | | | | | | — | | | | | | 292 | | |
Underlying free surplus generation before adjustment (5)
|
| | | | 141 | | | | | | — | | | | | | 141 | | | | | | 255 | | | | | | — | | | | | | 255 | | | | | | 361 | | | | | | — | | | | | | 361 | | |
Free surplus used to fund new business (6)
|
| | | | (238) | | | | | | — | | | | | | (238) | | | | | | (415) | | | | | | — | | | | | | (415) | | | | | | (406) | | | | | | — | | | | | | (406) | | |
Net underlying free surplus generation (7) = (3) + (6)
|
| | | | (92) | | | | | | — | | | | | | (92) | | | | | | 182 | | | | | | — | | | | | | 182 | | | | | | 248 | | | | | | — | | | | | | 248 | | |
Investment return variances and other items (8)
|
| | | | 4 | | | | | | (110) | | | | | | (106) | | | | | | 281 | | | | | | (157) | | | | | | 124 | | | | | | (547) | | | | | | (145) | | | | | | (693) | | |
Capital movements21 (9)
|
| | | | 159 | | | | | | 338 | | | | | | 498 | | | | | | 682 | | | | | | 58 | | | | | | 740 | | | | | | 370 | | | | | | 2,037 | | | | | | 2,408 | | |
Financing (10)
|
| | | | — | | | | | | (127) | | | | | | (127) | | | | | | — | | | | | | 2,996 | | | | | | 2,996 | | | | | | — | | | | | | (339) | | | | | | (339) | | |
Closing free surplus (11) = (1)+(2)+(7)+(8)+(9)+(10)
|
| | | | 682 | | | | | | 564 | | | | | | 1,246 | | | | | | 2,397 | | | | | | 368 | | | | | | 2,765 | | | | | | 2,879 | | | | | | 1,176 | | | | | | 4,055 | | |
| | |
Year ending
Dec 31, 2018 |
| |
Year ending
Dec 31, 2019 |
| |
Year ending
Dec 31, 2020 |
| |||||||||
Opening adjustments (1) = (2) + (3) + (4)
|
| | | | 5 | | | | | | 342 | | | | | | 292 | | |
Changes to Hong Kong reserving methodology (2)
|
| | | | 44 | | | | | | 164 | | | | | | — | | |
Alignment of basis for newly acquired entities (3)
|
| | | | — | | | | | | 173 | | | | | | 225 | | |
Other opening adjustments (4)
|
| | | | (38) | | | | | | 5 | | | | | | 67 | | |
Non-economic assumption changes (excluding expense revisions) (5)
|
| | | | 3 | | | | | | 46 | | | | | | 118 | | |
Total One-off variance (6) = (1) + (5)
|
| | | | 8 | | | | | | 388 | | | | | | 410 | | |
Expense variance (7)
|
| | | | (202) | | | | | | (308) | | | | | | (297) | | |
Policy year
|
| |
Base
|
| |
Extension of
peak lapse term |
| |
Revision of
long term lapse rate |
| |||||||||
1
|
| | | | 3% | | | | | | 3% | | | | | | 3% | | |
2
|
| | | | 9% | | | | | | 9% | | | | | | 9% | | |
3
|
| | | | 13% | | | | | | 13% | | | | | | 13% | | |
4
|
| | | | 15% | | | | | | 15% | | | | | | 15% | | |
5
|
| | | | 24% | | | | | | 24% | | | | | | 24% | | |
6
|
| | | | 21% | | | | | | 24% | | | | | | 21% | | |
7
|
| | | | 18% | | | | | | 24% | | | | | | 18% | | |
8
|
| | | | 15% | | | | | | 21% | | | | | | 15% | | |
9
|
| | | | 12% | | | | | | 18% | | | | | | 12% | | |
10
|
| | | | 9% | | | | | | 15% | | | | | | 9% | | |
11
|
| | | | 6% | | | | | | 12% | | | | | | 6% | | |
12
|
| | | | 5% | | | | | | 9% | | | | | | 6% | | |
13
|
| | | | 4% | | | | | | 6% | | | | | | 6% | | |
14
|
| | | | 4% | | | | | | 6% | | | | | | 6% | | |
15+
|
| | | | 4% | | | | | | 4% | | | | | | 6% | | |
| | |
As at Dec 31, 2020
|
| |||||||||||||||
| | |
EV
|
| |
Absolute
change from base case EV |
| |
% change
from base case EV |
| |||||||||
Base case
|
| | | | 8,479 | | | | | | | | | | | | | | |
Increase risk discount rate by 1.0%
|
| | | | 7,820 | | | | | | (659) | | | | | | (7.8)% | | |
Reduce risk discount rate by 1.0%
|
| | | | 9,302 | | | | | | 822 | | | | | | 9.7% | | |
Increase net investment returns and risk discount rates by 0.5% p.a.(1)
|
| | | | 8,729 | | | | | | 250 | | | | | | 2.9% | | |
Reduce net investment returns and risk discount rates by 0.5% p.a. (1)
|
| | | | 8,145 | | | | | | (334) | | | | | | (3.9)% | | |
Reduce net investment returns for private equity assets by 1% p.a.
|
| | | | 8,308 | | | | | | (172) | | | | | | (2.0)% | | |
Increase discontinuance and partial withdrawal rates by 10%
|
| | | | 8,375 | | | | | | (104) | | | | | | (1.2)% | | |
Reduce discontinuance and partial withdrawal rates by 10%
|
| | | | 8,613 | | | | | | 133 | | | | | | 1.6% | | |
Extend peak lapse term for FWD Japan COLI SME Term business
|
| | | | 8,214 | | | | | | (266) | | | | | | (3.1)% | | |
Increase long term lapse rate to 6% for FWD Japan COLI SME Term business
|
| | | | 8,381 | | | | | | (99) | | | | | | (1.2)% | | |
Increase mortality and morbidity rates and loss ratios by 10%
|
| | | | 7,999 | | | | | | (481) | | | | | | (5.7)% | | |
Reduce mortality and morbidity rates and loss ratios by 10%
|
| | | | 8,970 | | | | | | 491 | | | | | | 5.8% | | |
Increase acquisition and maintenance expenses by 10%
|
| | | | 8,326 | | | | | | (154) | | | | | | (1.8)% | | |
Reduce acquisition and maintenance expenses by 10%
|
| | | | 8,633 | | | | | | 154 | | | | | | 1.8% | | |
Appreciation of presentation currency by 5%
|
| | | | 8,177 | | | | | | (302) | | | | | | (3.6)% | | |
Depreciation of presentation currency by 5%
|
| | | | 8,785 | | | | | | 305 | | | | | | 3.6% | | |
Increase equity prices by 10%
|
| | | | 8,644 | | | | | | 165 | | | | | | 1.9% | | |
Reduce equity prices by 10%
|
| | | | 8,314 | | | | | | (166) | | | | | | (2.0)% | | |
| | |
Year ending Dec 31, 2020
|
| |||||||||||||||
| | |
VNB
|
| |
Absolute
change from base case |
| |
% change
from base case |
| |||||||||
Base case
|
| | | | 561 | | | | | | | | | | | | | | |
Increase risk discount rate by 1.0%
|
| | | | 463 | | | | | | (98) | | | | | | (17.5)% | | |
Reduce risk discount rate by 1.0%
|
| | | | 685 | | | | | | 124 | | | | | | 22.0% | | |
Increase net investment returns and risk discount rates by 0.5% p.a.
|
| | | | 670 | | | | | | 108 | | | | | | 19.3% | | |
Reduce net investment returns and risk discount rates by 0.5% p.a.
|
| | | | 432 | | | | | | (129) | | | | | | (23.0)% | | |
Reduce net investment returns for private equity assets by 1% p.a.
|
| | | | 541 | | | | | | (21) | | | | | | (3.7)% | | |
Increase discontinuance and partial withdrawal rates by 10%
|
| | | | 525 | | | | | | (36) | | | | | | (6.5)% | | |
Reduce discontinuance and partial withdrawal rates by 10%
|
| | | | 603 | | | | | | 42 | | | | | | 7.4% | | |
Increase mortality and morbidity rates and loss ratios by 10%
|
| | | | 470 | | | | | | (91) | | | | | | (16.2)% | | |
Reduce mortality and morbidity rates and loss ratios by 10%
|
| | | | 653 | | | | | | 91 | | | | | | 16.3% | | |
Increase acquisition and maintenance expenses by 10%
|
| | | | 516 | | | | | | (46) | | | | | | (8.2)% | | |
Reduce acquisition and maintenance expenses by 10%
|
| | | | 607 | | | | | | 46 | | | | | | 8.2% | | |
Revise acquisition unit cost loadings to eliminate adjusted operating expense variance in 2020 for FWD HK, FWD Japan and FWD Thailand
|
| | | | 496 | | | | | | (65) | | | | | | (11.6)% | | |
Appreciation of presentation currency by 5%
|
| | | | 542 | | | | | | (19) | | | | | | (3.5)% | | |
Depreciation of presentation currency by 5%
|
| | | | 581 | | | | | | 19 | | | | | | 3.5% | | |
|
/s/ Michael Daly
Michael Daly FIA
Principal & Consulting Actuary |
| |
/s/ Wen Yee Lee
Wen Yee Lee FIAA
Principal & Consulting Actuary |
|
| AER: | | | Actual Exchange Rate | |
| ANW: | | | Adjusted Net Worth | |
| CAGR: | | | Compound Annual Growth Rate | |
| CER: | | | Constant Exchange Rate | |
| COLI: | | | Corporate-owned Life Insurance | |
| EV: | | | Embedded Value | |
| EV Equity: | | | Equity attributable to shareholders and reflects the Group EV, adjusted to include goodwill and other intangible assets attributable to shareholders | |
| EV Policy: | | | FWD Group EV Policy | |
| FWD Cambodia: | | | Bangkok Life Assurance (Cambodia) Plc. | |
| FWD Fuji Life: | | | FWD Fuji Life Insurance Company, Limited | |
| FWD Group: | | | FWD Group Holdings Limited (formerly known as PCGI Intermediate Holdings Limited) | |
| FWD HK: | | | Includes FWD Life (Bermuda) (except FWD Malaysia, FWD Vietnam and FWD VCLI), FWD Macau, FWD Life Assurance (Hong Kong) and FWD Life (Hong Kong) | |
| FWD Indonesia: | | | PT FWD Insurance Indonesia | |
| FWD Japan: | | | Includes FWD Fuji Life and FWD Reinsurance | |
|
FWD Life Assurance (Hong Kong):
|
| | FWD Life Assurance Company (Hong Kong) Limited | |
| FWD Life (Bermuda): | | | FWD Life Insurance Company (Bermuda) Limited | |
| FWD Life (Hong Kong): | | | FWD Life (Hong Kong) Limited | |
| FWD Life Indonesia: | | | PT FWD Life Indonesia | |
| FWD Macau: | | | FWD Life Insurance Company (Macau) Limited | |
| FWD Malaysia: | | | FWD Takaful Berhad | |
| FWD Philippines: | | | FWD Life Insurance Corporation | |
| FWD Reinsurance | | | FWD Reinsurance SPC, Ltd. | |
| FWD Singapore: | | | FWD Singapore Pte. Ltd | |
| FWD Thailand: | | | FWD Life Insurance Public Company Limited | |
| FWD VCLI: | | | FWD Assurance VietNam Company Limited | |
| FWD Vietnam: | | | FWD Vietnam Life Insurance Company Limited | |
| FX Rate: | | | Foreign Exchange Rate | |
| HKD: | | | HK Dollar | |
| IDR: | | | Indonesian Rupiah | |
| IFRS: | | | International Financial Reporting Standards | |
| IFRS accounts: | | | Audited consolidated financial statements of FWD Group Holdings Limited (formerly known as PCGI Intermediate Holdings Limited) for the years ending December 31, 2018, 2019 and 2020 | |
| IPO: | | | Initial Public Offering | |
| JPY: | | | Japanese Yen | |
| MCEV: | | | Market Consistent Embedded Value | |
| MOP: | | | Macanese Pataca | |
| MYR: | | | Malaysia Ringgit | |
| NA: | | | Not Applicable / Not Available | |
| nm: | | | Not Material | |
| NB APE: | | | New Business Annual Premium Equivalent | |
| PHP: | | | Philippine Peso | |
| pps: | | | Percentage Points | |
| PVNBP: | | | Present Value of New Business Premium | |
| RBC: | | | Risk-based Capital | |
| RI: | | | One-off retrocession reinsurance business to FWD Reinsurance | |
| SCB: | | | Siam Commercial Bank | |
| SCB Life | | | SCB Life Assurance Public Company Limited | |
| SGD: | | | Singapore Dollar | |
| Swiss Re: | | | Swiss Reinsurance Company Ltd | |
| TEV: | | | Traditional Embedded Value | |
| THB: | | | Thai Baht | |
| TMB: | | | Thai Military Bank | |
| USD: | | | US Dollar | |
| VIF: | | | Value of In-force Business after cost of capital | |
| VNB: | | | Value of New Business after cost of capital | |
| VND: | | | Vietnamese Dong | |
| YoY: | | | Year-on-year | |
| | |
FX rate used for EV
|
| |||||||||||||||
| | |
Dec 31, 2018
|
| |
Dec 31, 2019
|
| |
Dec 31, 2020
|
| |||||||||
Hong Kong Dollar (HKD)
|
| | | | 7.8319 | | | | | | 7.7865 | | | | | | 7.7519 | | |
Macanese Pataca (MOP)
|
| | | | 8.0653 | | | | | | 8.0227 | | | | | | 7.9872 | | |
Japanese Yen (JPY)
|
| | | | 109.9127 | | | | | | 108.5455 | | | | | | 103.1140 | | |
Thai Baht (THB)
|
| | | | 32.3598 | | | | | | 29.7445 | | | | | | 29.9527 | | |
Indonesian Rupiah (IDR)
|
| | | | 14,410.4803 | | | | | | 13,882.4996 | | | | | | 14,054.0000 | | |
Malaysia Ringgit (MYR)
|
| | | | 4.1325 | | | | | | 4.0905 | | | | | | 4.0177 | | |
Philippine Peso (PHP)
|
| | | | 52.5004 | | | | | | 50.6498 | | | | | | 48.0307 | | |
Singapore Dollar (SGD)
|
| | | | 1.3617 | | | | | | 1.3451 | | | | | | 1.3212 | | |
Vietnamese Dong (VND)
|
| | | | 23,200.0000 | | | | | | 23,186.6825 | | | | | | 23,083.0000 | | |
| | |
FX rate used for VNB and movement items in EV AOM
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Average year-to-date FX rate
|
| |
Quarterly average FX rate
|
| ||||||||||||||||||||||||||||||||||||
| | |
2018
|
| |
2019
|
| |
2020
|
| |
FX rate
for 20201Q |
| |
FX rate
for 20202Q |
| |
FX rate
for 20203Q |
| |
FX rate
for 20204Q |
| |||||||||||||||||||||
Hong Kong Dollar (HKD)
|
| | | | 7.8375 | | | | | | 7.8353 | | | | | | 7.7562 | | | | | | 7.7712 | | | | | | 7.7515 | | | | | | 7.7504 | | | | | | 7.7517 | | |
Macanese Pataca
(MOP) |
| | | | 8.0382 | | | | | | 8.0398 | | | | | | 7.9890 | | | | | | 8.0056 | | | | | | 7.9832 | | | | | | 7.9824 | | | | | | 7.9849 | | |
Japanese Yen (JPY)
|
| | | | 110.4342 | | | | | | 109.0102 | | | | | | 106.7482 | | | | | | 108.9471 | | | | | | 107.5355 | | | | | | 106.0817 | | | | | | 104.4284 | | |
Thai Baht (THB)
|
| | | | 32.3191 | | | | | | 31.0459 | | | | | | 31.2971 | | | | | | 31.2776 | | | | | | 31.9742 | | | | | | 31.3334 | | | | | | 30.6030 | | |
Indonesian Rupiah (IDR)
|
| | | | 14,234.2421 | | | | | | 14,144.1300 | | | | | | 14,541.3397 | | | | | | 14,204.7145 | | | | | | 14,926.7620 | | | | | | 14,684.7287 | | | | | | 14,349.1538 | | |
Malaysia Ringgit (MYR)
|
| | | | 4.0353 | | | | | | 4.1421 | | | | | | 4.2017 | | | | | | 4.1757 | | | | | | 4.3219 | | | | | | 4.2022 | | | | | | 4.1071 | | |
Philippine Peso (PHP)
|
| | | | 52.6908 | | | | | | 51.7933 | | | | | | 49.6133 | | | | | | 50.8368 | | | | | | 50.4535 | | | | | | 48.9056 | | | | | | 48.2572 | | |
Singapore Dollar
(SGD) |
| | | | 1.3489 | | | | | | 1.3641 | | | | | | 1.3795 | | | | | | 1.3851 | | | | | | 1.4121 | | | | | | 1.3744 | | | | | | 1.3464 | | |
Vietnamese Dong (VND)
|
| | | | 23,021.8042 | | | | | | 23,227.3089 | | | | | | 23,238.2895 | | | | | | 23,251.1046 | | | | | | 23,358.8376 | | | | | | 23,182.0513 | | | | | | 23,161.1645 | | |
| | |
Business plan projections as at December 31, 2018
|
| |||||||||||||||||||||||||||||||||
Year ending December, 31
|
| |
2019
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| ||||||||||||||||||
Hong Kong
|
| | | | 19 | | | | | | 11 | | | | | | 4 | | | | | | — | | | | | | — | | | | | | — | | |
Japan
|
| | | | 26 | | | | | | 15 | | | | | | 5 | | | | | | — | | | | | | — | | | | | | — | | |
Thailand
|
| | | | 10 | | | | | | 6 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | |
Emerging Markets
|
| | | | 25 | | | | | | 10 | | | | | | 4 | | | | | | 2 | | | | | | 1 | | | | | | 1 | | |
Total | | | | | 79 | | | | | | 42 | | | | | | 15 | | | | | | 2 | | | | | | 1 | | | | | | 1 | | |
| | |
Business plan projections as at December 31, 2019
|
| |||||||||||||||||||||||||||
Year ending December, 31
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |||||||||||||||
Hong Kong
|
| | | | 19 | | | | | | 13 | | | | | | 5 | | | | | | 2 | | | | | | nm | | |
Japan
|
| | | | 13 | | | | | | 1 | | | | | | nm | | | | | | nm | | | | | | — | | |
Thailand
|
| | | | 52 | | | | | | 31 | | | | | | 19 | | | | | | 5 | | | | | | — | | |
Emerging Markets
|
| | | | 23 | | | | | | 12 | | | | | | 4 | | | | | | 1 | | | | | | nm | | |
Total | | | | | 107 | | | | | | 57 | | | | | | 28 | | | | | | 7 | | | | | | 1 | | |
| | |
Business plan projections as at December 31, 2020
|
| |||||||||||||||||||||||||||
Year ending December, 31
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |||||||||||||||
Hong Kong
|
| | | | 6 | | | | | | nm | | | | | | — | | | | | | — | | | | | | — | | |
Japan
|
| | | | 7 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | |
Thailand
|
| | | | 22 | | | | | | 4 | | | | | | — | | | | | | — | | | | | | — | | |
Emerging Markets
|
| | | | 20 | | | | | | 9 | | | | | | 4 | | | | | | 1 | | | | | | 1 | | |
Total | | | | | 55 | | | | | | 15 | | | | | | 4 | | | | | | 1 | | | | | | 1 | | |
Projection Year
|
| |
1
|
| |
2
|
| |
3
|
| |
4
|
| |
5
|
| |
6
|
| |
7
|
| |
8
|
| |
9
|
| |
10
|
| |
11
|
| |
12
|
| |
13
|
| |
14
|
| |
15
|
| |||||||||||||||||||||||||||||||||||||||||||||
2018 EV (From Dec 31, 2018)
|
| | | | 60 | | | | | | 63 | | | | | | 65 | | | | | | 64 | | | | | | 65 | | | | | | 58 | | | | | | 50 | | | | | | 43 | | | | | | 35 | | | | | | 27 | | | | | | 27 | | | | | | 28 | | | | | | 28 | | | | | | 29 | | | | | | 30 | | |
2019 EV (From Dec 31, 2019)
|
| | | | 75 | | | | | | 76 | | | | | | 74 | | | | | | 71 | | | | | | 64 | | | | | | 57 | | | | | | 49 | | | | | | 41 | | | | | | 33 | | | | | | 24 | | | | | | 25 | | | | | | 25 | | | | | | 26 | | | | | | 26 | | | | | | 27 | | |
2020 EV (From Dec 31, 2020)
|
| | | | 86 | | | | | | 84 | | | | | | 82 | | | | | | 79 | | | | | | 76 | | | | | | 68 | | | | | | 58 | | | | | | 49 | | | | | | 38 | | | | | | 28 | | | | | | 28 | | | | | | 29 | | | | | | 30 | | | | | | 30 | | | | | | 31 | | |
| | |
Year ending Dec 31, 2018
|
| |
Year ending Dec 31, 2019
|
| |
Year ending Dec 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| |||||||||||||||||||||||||||
Opening EV (1)
|
| | | | 338 | | | | | | 1,464 | | | | | | 1,802 | | | | | | 676 | | | | | | 1,990 | | | | | | 2,666 | | | | | | (1,143) | | | | | | 2,606 | | | | | | 1,463 | | |
Acquisitions & partnerships / Discontinued business (2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,963) | | | | | | 338 | | | | | | (1,625) | | | | | | (207) | | | | | | 106 | | | | | | (101) | | |
Expected return on EV (3)
|
| | | | 222 | | | | | | 25 | | | | | | 246 | | | | | | 221 | | | | | | 101 | | | | | | 322 | | | | | | 252 | | | | | | 160 | | | | | | 412 | | |
VNB (4)(See note)
|
| | | | — | | | | | | 646 | | | | | | 646 | | | | | | — | | | | | | 498 | | | | | | 498 | | | | | | — | | | | | | 617 | | | | | | 617 | | |
Operating variance and operating assumption change (5) = (6)+(7)
|
| | | | (113) | | | | | | (99) | | | | | | (212) | | | | | | (188) | | | | | | (77) | | | | | | (265) | | | | | | (29) | | | | | | (230) | | | | | | (259) | | |
Operating variance (6)
|
| | | | (139) | | | | | | (4) | | | | | | (142) | | | | | | (211) | | | | | | (53) | | | | | | (264) | | | | | | (185) | | | | | | (115) | | | | | | (300) | | |
Operating assumption change (7)
|
| | | | 26 | | | | | | (95) | | | | | | (69) | | | | | | 23 | | | | | | (24) | | | | | | (1) | | | | | | 156 | | | | | | (115) | | | | | | 41 | | |
Total EV operating profit (8) = (3)+(4)+(5)
|
| | | | 109 | | | | | | 571 | | | | | | 680 | | | | | | 33 | | | | | | 522 | | | | | | 555 | | | | | | 223 | | | | | | 547 | | | | | | 770 | | |
Economic variance and economic assumption change (9) = (10)+(11)
|
| | | | 215 | | | | | | (85) | | | | | | 130 | | | | | | 370 | | | | | | (324) | | | | | | 46 | | | | | | (988) | | | | | | 511 | | | | | | (478) | | |
Economic variance (10)
|
| | | | 200 | | | | | | (165) | | | | | | 36 | | | | | | 372 | | | | | | (155) | | | | | | 217 | | | | | | (987) | | | | | | 571 | | | | | | (416) | | |
Economic assumption change (11)
|
| | | | 15 | | | | | | 80 | | | | | | 95 | | | | | | (2) | | | | | | (170) | | | | | | (171) | | | | | | (1) | | | | | | (61) | | | | | | (62) | | |
Other non-operating variance (12)
|
| | | | (159) | | | | | | 49 | | | | | | (110) | | | | | | (281) | | | | | | 46 | | | | | | (234) | | | | | | 403 | | | | | | (458) | | | | | | (55) | | |
Total EV profit (13)=(8)+(9)+(12)
|
| | | | 165 | | | | | | 535 | | | | | | 701 | | | | | | 122 | | | | | | 244 | | | | | | 366 | | | | | | (362) | | | | | | 600 | | | | | | 238 | | |
Capital movements (14)
|
| | | | 300 | | | | | | — | | | | | | 300 | | | | | | 140 | | | | | | — | | | | | | 140 | | | | | | 2,408 | | | | | | — | | | | | | 2,408 | | |
Corporate adjustments (15)
|
| | | | (71) | | | | | | (18) | | | | | | (90) | | | | | | (64) | | | | | | (33) | | | | | | (97) | | | | | | (91) | | | | | | (71) | | | | | | (163) | | |
Financing (16)
|
| | | | (55) | | | | | | — | | | | | | (55) | | | | | | (129) | | | | | | — | | | | | | (129) | | | | | | (198) | | | | | | — | | | | | | (198) | | |
Foreign exchange movement (17)
|
| | | | (1) | | | | | | 9 | | | | | | 7 | | | | | | 76 | | | | | | 66 | | | | | | 142 | | | | | | 52 | | | | | | 62 | | | | | | 115 | | |
Closing EV (18)=(1)+(2)+(13)+(14)+(15)+(16)+(17)
|
| | |
|
676
|
| | | | | 1,990 | | | | | | 2,666 | | | | | | (1,143) | | | | | | 2,606 | | | | | | 1,463 | | | | | | 458 | | | | | | 3,303 | | | | | | 3,761 | | |
| | |
Year ending Dec 31, 2018
|
| |
Year ending Dec 31, 2019
|
| |
Year ending Dec 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
| | |
Op.
Entity |
| |
Group
adj. |
| |
Total
|
| |
Op.
Entity |
| |
Group
adj. |
| |
Total
|
| |
Op.
Entity |
| |
Group
adj. |
| |
Total
|
| |||||||||||||||||||||||||||
Opening free surplus (1)
|
| | | | 611 | | | | | | (1,113) | | | | | | (502) | | | | | | 682 | | | | | | (1,136) | | | | | | (454) | | | | | | 2,397 | | | | | | (5,103) | | | | | | (2,705) | | |
Acquisitions & partnerships / Discontinued business (2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 571 | | | | | | (3,094) | | | | | | (2,523) | | | | | | 410 | | | | | | (745) | | | | | | (335) | | |
Underlying free surplus generation (3) = (4)+(5)
|
| | | | 146 | | | | | | — | | | | | | 146 | | | | | | 597 | | | | | | — | | | | | | 597 | | | | | | 654 | | | | | | — | | | | | | 654 | | |
Opening adjustment (4)
|
| | | | 5 | | | | | | — | | | | | | 5 | | | | | | 342 | | | | | | — | | | | | | 342 | | | | | | 292 | | | | | | — | | | | | | 292 | | |
Underlying free surplus generation before adjustment (5)
|
| | | | 141 | | | | | | — | | | | | | 141 | | | | | | 255 | | | | | | — | | | | | | 255 | | | | | | 361 | | | | | | — | | | | | | 361 | | |
Free surplus used to fund new business (6)
|
| | | | (238) | | | | | | — | | | | | | (238) | | | | | | (415) | | | | | | — | | | | | | (415) | | | | | | (406) | | | | | | — | | | | | | (406) | | |
Net underlying free surplus generation (7) = (3) + (6)
|
| | | | (92) | | | | | | — | | | | | | (92) | | | | | | 182 | | | | | | — | | | | | | 182 | | | | | | 248 | | | | | | — | | | | | | 248 | | |
Investment return variances and other items (8)
|
| | | | 4 | | | | | | (109) | | | | | | (104) | | | | | | 281 | | | | | | (202) | | | | | | 79 | | | | | | (547) | | | | | | (156) | | | | | | (704) | | |
Capital movements (9)
|
| | | | 159 | | | | | | 141 | | | | | | 300 | | | | | | 682 | | | | | | (542) | | | | | | 140 | | | | | | 370 | | | | | | 2,037 | | | | | | 2,408 | | |
Financing (10)
|
| | | | — | | | | | | (55) | | | | | | (55) | | | | | | — | | | | | | (129) | | | | | | (129) | | | | | | — | | | | | | (198) | | | | | | (198) | | |
Closing free surplus (11) =(1)+(2)+(7)+(8)+(9)+(10)
|
| | | | 682 | | | | | | (1,136) | | | | | | (454) | | | | | | 2,397 | | | | | | (5,103) | | | | | | (2,705) | | | | | | 2,879 | | | | | | (4,164) | | | | | | (1,286) | | |
Embedded value
|
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| |
Change during
1H2021 (as % of base results as at Dec 31, 2020): CER basis |
| |
Change during
1H2021 (as % of base results as at Dec 31, 2020): AER basis |
| ||||||||||||
Gross of financing | | | | | | | | | | | | | | | | | | | | | | | | | |
Group EV
|
| | | | 9,102 | | | | | | 9,886 | | | | | | 12.7% | | | | | | 8.6% | | |
— ANW
|
| | | | 5,799 | | | | | | 6,456 | | | | | | 14.7% | | | | | | 11.3% | | |
— VIF
|
| | | | 3,303 | | | | | | 3,430 | | | | | | 9.1% | | | | | | 3.9% | | |
Net of financing | | | | | | | | | | | | | | | | | | | | | | | | | |
Group EV
|
| | | | 3,761 | | | | | | 4,526 | | | | | | 31.8% | | | | | | 20.3% | | |
— ANW
|
| | | | 458 | | | | | | 1,096 | | | | | | 280.1% | | | | | | 139.3% | | |
—VIF
|
| | | | 3,303 | | | | | | 3,430 | | | | | | 9.1% | | | | | | 3.9% | | |
EV equity
|
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| |
Change during
1H2021 (as% of base results as at Dec 31, 2020): CER basis |
| |
Change during
1H2021 (as% of base results as at Dec 31, 2020): AER basis |
| ||||||||||||
Group EV (gross of financing)
|
| | | | 9,102 | | | | | | 9,886 | | | | | | 12.7% | | | | | | 8.6% | | |
Plus: Goodwill and other intangible assets
|
| | | | 3,349 | | | | | | 3,376 | | | | | | 4.6% | | | | | | 0.8% | | |
EV equity (gross of financing)
|
| | | | 12,451 | | | | | | 13,262 | | | | | | 10.5% | | | | | | 6.5% | | |
EV equity (net of financing)
|
| | | | 7,110 | | | | | | 7,902 | | | | | | 18.6% | | | | | | 11.1% | | |
New business value
|
| |
Six months ended
June 30, 2020 |
| |
Six months
ended June 30, 2021 |
| |
YoY
change: CER basis |
| |
YoY
change: AER basis |
| ||||||
VNB
|
| | | | 235 | | | | | | 346 | | | |
45.1%
|
| |
47.5%
|
|
NB APE
|
| | | | 751 | | | | | | 751 | | | |
(1.7%)
|
| |
(0.0%)
|
|
PVNBP
|
| | | | 3,908 | | | | | | 4,707 | | | |
18.6%
|
| |
20.4%
|
|
VNB margin
(VNB / NB APE) |
| | | | 31.2% | | | | | | 46.1% | | | |
14.9 pps
|
| |
14.9 pps
|
|
VNB margin
(VNB / PVNBP) |
| | | | 6.0% | | | | | | 7.4% | | | |
1.3 pps
|
| |
1.4 pps
|
|
EV operating profits
|
| |
Six months ended
June 30, 2020 |
| |
Six months
ended June 30, 2021 |
| |
YoY
change: CER basis |
| |
YoY
change: AER basis |
| ||||||||||||
Before expense and commission variance
|
| | | | 443 | | | | | | 513 | | | | | | 14.0% | | | | | | 15.8% | | |
After expense and commission variance
|
| | | | 329 | | | | | | 410 | | | | | | 22.8% | | | | | | 24.8% | | |
Free surplus generation
|
| |
Six months ended
June 30, 2020 |
| |
Six months
ended June 30, 2021 |
| |
YoY
change: CER basis |
| |
YoY
change: AER basis |
| ||||||
Underlying free surplus generation
|
| | | | 237 | | | | | | 223 | | | |
(6.4%)
|
| |
(5.8%)
|
|
Net underlying free surplus generation
|
| | | | 19 | | | | | | (26) | | | |
(247.4%)
|
| |
(235.3%)
|
|
Business Units
|
| |
Required Capital
|
|
FWD HK | | | 150% of required minimum solvency margin | |
FWD Japan | | |
600% of regulatory risk-based capital requirement for FWD Fuji Life
400% of regulatory risk-based capital requirement for FWD Reinsurance
|
|
FWD Thailand | | | 120% and 140% of regulatory risk-based capital requirement for 2021 and 2022 onwards respectively (RBC 2) | |
FWD Indonesia | | | 120% of regulatory risk-based capital requirement | |
FWD Malaysia | | | 195% of regulatory risk-based capital requirement | |
FWD Philippines | | | 100% of regulatory risk-based capital requirement for 2020, 125% thereafter | |
FWD Singapore | | | 135% of regulatory risk-based capital requirement (RBC 2) | |
FWD Vietnam | | | 100% of required minimum solvency margin | |
Business Units
|
| |
Risk discount rates
|
| |
Current market 10-year Government Bond Yields
|
| ||||||||||||||||||||||||||||||
|
As at
June 30, 2020 |
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| |
As at
June 30, 2020 |
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||||||||||||||||
FWD HK
|
| | | | 6.90% | | | | | | 7.20% | | | | | | 7.20% | | | |
0.66% (USD);
0.62% (HKD) |
| |
0.93% (USD);
0.74% (HKD) |
| |
1.45% (USD);
1.30% (HKD) |
| |||||||||
FWD Japan
|
| | | | 6.00% | | | | | | 6.00% | | | | | | 6.00% | | | | | | 0.03% | | | | | | 0.02% | | | | | | 0.05% | | |
FWD Thailand
|
| | | | 8.30% | | | | | | 8.30% | | | | | | 8.30% | | | | | | 1.28% | | | | | | 1.28% | | | | | | 1.78% | | |
FWD Indonesia
|
| | | | 14.00% | | | | | | 14.00% | | | | | | 14.00% | | | | | | 7.22% | | | | | | 5.94% | | | | | | 6.63% | | |
FWD Malaysia
|
| | | | 9.00% | | | | | | 9.00% | | | | | | 9.00% | | | | | | 3.06% | | | | | | 2.68% | | | | | | 3.29% | | |
FWD Philippines
|
| | | | 12.00% | | | | | | 12.00% | | | | | | 12.00% | | | | | | 2.79% | | | | | | 2.99% | | | | | | 4.01% | | |
FWD Singapore
|
| | | | 7.00% | | | | | | 7.00% | | | | | | 7.00% | | | | | | 0.90% | | | | | | 0.84% | | | | | | 1.58% | | |
FWD Vietnam
|
| | | | 11.50% | | | | | | 11.50% | | | | | | 11.50% | | | | | | 3.03% | | | | | | 2.45% | | | | | | 2.17% | | |
Group Office expense adjustments
|
| | | | 6.90% | | | | | | 7.20% | | | | | | 7.20% | | | | | | NA | | | | | | NA | | | | | | NA | | |
| | |
Long Term 10-Year Government Bond Yields
|
| |
Local Equity Returns
|
| ||||||||||||||||||||||||||||||
Business Units
|
| |
As at
June 30, 2020 |
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| |
As at
June 30, 2020 |
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||||||||||||||
FWD HK
|
| |
2.40% (USD);
1.90% (HKD) |
| |
2.40% (USD);
1.90% (HKD) |
| |
2.40% (USD);
1.90% (HKD) |
| | | | 7.40% | | | | | | 7.40% | | | | | | 7.40% | | | |||||||||
FWD Japan
|
| | | | 0.25% | | | | | | 0.25% | | | | | | 0.25% | | | | | | 5.30% | | | | | | NA | | | | | | NA | | |
FWD Thailand
|
| | | | 2.75% | | | | | | 2.75% | | | | | | 2.75% | | | |
8.55%
(8.50% for SCB Life) |
| | | | 8.50% | | | | | | 8.50% | | | |||
FWD Indonesia
|
| | | | 7.50% | | | | | | 7.50% | | | | | | 7.50% | | | | | | 12.00% | | | | | | 11.70% | | | | | | 11.70% | | |
FWD Malaysia
|
| | | | 4.00% | | | | | | 4.00% | | | | | | 4.00% | | | | | | 8.46% | | | | | | 8.10% | | | | | | 8.10% | | |
FWD Philippines
|
| | | | 4.75% | | | | | | 4.75% | | | | | | 4.75% | | | | | | 9.74% | | | | | | 9.74% | | | | | | 9.74% | | |
FWD Singapore
|
| | | | 2.25% | | | | | | 2.25% | | | | | | 2.25% | | | | | | NA | | | | | | NA | | | | | | NA | | |
FWD Vietnam
|
| | | | 4.50% | | | | | | 4.50% | | | | | | 4.50% | | | | | | 10.20% | | | | | | 10.20% | | | | | | 10.20% | | |
Group Office expense adjustments
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | |
Region
|
| |
As at
Dec 31, 2020(1) |
| |||
Hong Kong
|
| | | | (59) | | |
Japan
|
| | | | (35) | | |
Thailand
|
| | | | (27) | | |
Emerging Markets
|
| | | | (131) | | |
Total | | | | | (252) | | |
| | |
Present value of maintenance expense overruns
allowed for within the VIF (after tax) |
| |||||||||
Region
|
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
Hong Kong
|
| | | | (7) | | | | | | (9) | | |
Japan
|
| | | | (8) | | | | | | (4) | | |
Thailand
|
| | | | (24) | | | | | | (12) | | |
Emerging Markets
|
| | | | (26) | | | | | | (23) | | |
Total | | | | | (65) | | | | | | (48) | | |
Region
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
Hong Kong
|
| | | | (28) | | | | | | (16) | | |
Japan
|
| | | | (30) | | | | | | (17) | | |
Thailand
|
| | | | (13) | | | | | | (21) | | |
Emerging Markets
|
| | | | (43) | | | | | | (50) | | |
Total | | | | | (114) | | | | | | (103) | | |
Region
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
Acquisition expense variance
|
| | | | (85) | | | | | | (83) | | |
Commission related expense variance
|
| | | | (18) | | | | | | 0 | | |
Maintenance expense variance
|
| | | | (11) | | | | | | (20) | | |
Operating expense and commission variance
|
| | | | (114) | | | | | | (103) | | |
Region
|
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
Unallocated Group Office expenses
|
| | | | (554) | | | | | | (554)(1) | | |
Business Units
|
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
FWD HK
|
| | | | 2.3% | | | | | | 2.3% | | |
FWD Japan
|
| | | | 0.0% | | | | | | 0.0% | | |
FWD Thailand
|
| | | | 2.0% | | | | | | 2.0% | | |
FWD Indonesia
|
| | | | 3.5% | | | | | | 3.5% | | |
FWD Malaysia
|
| | | | 3.0% | | | | | | 3.0% | | |
FWD Philippines
|
| | | | 3.0% | | | | | | 3.0% | | |
FWD Singapore
|
| | | | 3.0% | | | | | | 3.0% | | |
FWD Vietnam
|
| | | | 7.0% | | | | | | 7.0% | | |
Business Units
|
| |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
FWD HK
|
| | | | 16.5% | | | | | | 16.5% | | |
FWD Japan
|
| | | | 28.0% | | | | | | 28.0% | | |
FWD Thailand
|
| | | | 20.0% | | | | | | 20.0% | | |
FWD Indonesia
|
| |
22.0% for 2020 and 2021,
20.0% thereafter |
| |
22.0% for 2021,
20.0% thereafter |
| ||||||
FWD Malaysia
|
| | | | 24.0% | | | | | | 24.0% | | |
FWD Philippines4
|
| | | | 2.0% | | | |
1.0% from July 1, 2020
to June 30, 2023, 2.0% thereafter(1) |
| |||
FWD Singapore
|
| | | | 17.0% | | | | | | 17.0% | | |
FWD Vietnam
|
| |
0% until Dec 31, 2024,
20.0% thereafter(2) |
| |
0% until Dec 31, 2024,
20.0% thereafter(2) |
|
| | |
As at Dec 31, 2020
|
| |
As at June 30, 2021
|
| ||||||||||||||||||||||||||||||
| | |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| ||||||||||||||||||
Operating entity EV
|
| | | | 4,622 | | | | | | 3,857 | | | | | | 8,479 | | | | | | 4,685 | | | | | | 3,984 | | | | | | 8,669 | | |
Plus: Corporate & Other net assets
|
| | | | 1,176 | | | | | | — | | | | | | 1,176 | | | | | | 1,771 | | | | | | — | | | | | | 1,771 | | |
Less: Unallocated Group Office expenses
|
| | | | — | | | | | | (554) | | | | | | (554) | | | | | | — | | | | | | (554) | | | | | | (554) | | |
Group EV (gross of financing)
|
| | | | 5,799 | | | | | | 3,303 | | | | | | 9,102 | | | | | | 6,456 | | | | | | 3,430 | | | | | | 9,886 | | |
Less: Financing
|
| | | | (5,341) | | | | | | — | | | | | | (5,341) | | | | | | (5,360) | | | | | | — | | | | | | (5,360) | | |
Group EV (net of financing)
|
| | | | 458 | | | | | | 3,303 | | | | | | 3,761 | | | | | | 1,096 | | | | | | 3,430 | | | | | | 4,526 | | |
| | |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
Borrowings (1)
|
| | | | (3,457) | | | | | | (3,463) | | |
Intercompany perpetual securities (2)
|
| | | | (276) | | | | | | (290) | | |
External perpetual securities (3)
|
| | | | (1,607) | | | | | | (1,607) | | |
Total financing (4) = (1) + (2) + (3)
|
| | | | (5,341) | | | | | | (5,360) | | |
| | |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
Group EV (gross of financing)
|
| | | | 9,102 | | | | | | 9,886 | | |
Plus: Goodwill and other intangible assets
|
| | | | 3,349 | | | | | | 3,376 | | |
EV equity (gross of financing)
|
| | | | 12,451 | | | | | | 13,262 | | |
Less: Financing | | | | | | | | | | | | | |
— Borrowings
|
| | | | (3,457) | | | | | | (3,463) | | |
— Perpetual securities
|
| | | | (1,883) | | | | | | (1,897) | | |
EV equity (net of financing)
|
| | | | 7,110 | | | | | | 7,902 | | |
| | |
As at
Dec 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
IFRS equity attributable to shareholders (1)6
|
| | | | 8,218 | | | | | | 7,943 | | |
Elimination of IFRS deferred acquisition and origination costs assets (2)
|
| | | | (4,591) | | | | | | (4,627) | | |
Difference between IFRS and local statutory asset and liability items (3)
|
| | | | 2,024 | | | | | | 2,739 | | |
Difference between net IFRS and local statutory asset and liability items
(4) = (2) + (3) |
| | | | (2,566) | | | | | | (1,888) | | |
Mark-to-market adjustment for property and mortgage loan investments, net of
amounts attributable to participating funds (5) |
| | | | (128) | | | | | | 4 | | |
Elimination of intangible assets (6)
|
| | | | (3,531) | | | | | | (3,592)7 | | |
Recognition of deferred tax impacts of the above adjustments (7)
|
| | | | 80 | | | | | | 240 | | |
Recognition of non-controlling interest impacts of the above adjustments (8)
|
| | | | (7) | | | | | | (4) | | |
Elimination of external perpetual securities (9)
|
| | | | (1,607) | | | | | | (1,607) | | |
ANW (net of financing)
(10) = (1) + (4) + (5) + (6) + (7) + (8) + (9) |
| | | | 458 | | | | | | 1,096 | | |
| | |
As at Dec 31, 2020
|
| |
As at June 30, 2021
|
| ||||||||||||||||||||||||||||||
| | |
Op. Entity
|
| |
Corp. & others
|
| |
Total
|
| |
Op. Entity
|
| |
Corp. & others
|
| |
Total
|
| ||||||||||||||||||
Free surplus
|
| | | | 2,879 | | | | | | 1,176 | | | | | | 4,055 | | | | | | 2,688 | | | | | | 1,771 | | | | | | 4,459 | | |
Required capital
|
| | | | 1,744 | | | | | | — | | | | | | 1,744 | | | | | | 1,997 | | | | | | — | | | | | | 1,997 | | |
Less: Financing
|
| | | | — | | | | | | (5,341) | | | | | | (5,341) | | | | | | — | | | | | | (5,360) | | | | | | (5,360) | | |
ANW (net of financing)
|
| | | | 4,622 | | | | | | (4,164) | | | | | | 458 | | | | | | 4,685 | | | | | | (3,589) | | | | | | 1,096 | | |
| | |
As at Dec 31, 2020
|
| |
As at June 30, 2021
|
| ||||||||||||||||||
Expected period of emergence
|
| |
Undiscounted
|
| |
Discounted
|
| |
Undiscounted
|
| |
Discounted
|
| ||||||||||||
1 – 5 years
|
| | | | 747 | | | | | | 498 | | | | | | 1,390 | | | | | | 1,079 | | |
6 – 10 years
|
| | | | 2,900 | | | | | | 1,664 | | | | | | 2,902 | | | | | | 1,669 | | |
11 – 15 years
|
| | | | 2,699 | | | | | | 1,117 | | | | | | 2,532 | | | | | | 1,047 | | |
16 – 20 years
|
| | | | 1,984 | | | | | | 596 | | | | | | 1,841 | | | | | | 551 | | |
21 years and thereafter
|
| | | | 17,823 | | | | | | 1,171 | | | | | | 15,693 | | | | | | 1,060 | | |
Total
|
| | | | 26,153 | | | | | | 5,047 | | | | | | 24,358 | | | | | | 5,407 | | |
| | |
Six months ended June 30, 2020
|
| |
Six months ended June 30, 2021
|
| ||||||||||||||||||||||||||||||
|
NB APE
|
| |
PVNBP
|
| |
VNB
|
| |
NB APE
|
| |
PVNBP
|
| |
VNB
|
| ||||||||||||||||||||
Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Onshore
|
| | | | 127 | | | | | | 809 | | | | | | 51 | | | | | | 172 | | | | | | 1,680 | | | | | | 87 | | |
Offshore
|
| | | | 41 | | | | | | 181 | | | | | | 12 | | | | | | 80 | | | | | | 311 | | | | | | 11 | | |
Sub-total
|
| | | | 167 | | | | | | 989 | | | | | | 63 | | | | | | 252 | | | | | | 1,991 | | | | | | 98 | | |
Japan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
COLI
|
| | | | 85 | | | | | | 481 | | | | | | 17 | | | | | | 41 | | | | | | 229 | | | | | | 14 | | |
RI
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Individual
|
| | | | 55 | | | | | | 437 | | | | | | 36 | | | | | | 65 | | | | | | 515 | | | | | | 55 | | |
Sub-total
|
| | | | 140 | | | | | | 917 | | | | | | 53 | | | | | | 106 | | | | | | 744 | | | | | | 69 | | |
Thailand | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TMB
|
| | | | 46 | | | | | | 185 | | | | | | 8 | | | | | | NA | | | | | | NA | | | | | | NA | | |
SCB
|
| | | | 260 | | | | | | 1,227 | | | | | | 63 | | | | | | 225 | | | | | | 1,143 | | | | | | 104 | | |
Others
|
| | | | 53 | | | | | | 211 | | | | | | 15 | | | | | | 44 | | | | | | 231 | | | | | | 21 | | |
Sub-total
|
| | | | 358 | | | | | | 1,623 | | | | | | 87 | | | | | | 269 | | | | | | 1,374 | | | | | | 125 | | |
Emerging Markets (See note(1)) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions & partnerships / Discontinued business
|
| | | | 6 | | | | | | 21 | | | | | | 2 | | | | | | 23 | | | | | | 112 | | | | | | 9 | | |
Others
|
| | | | 79 | | | | | | 358 | | | | | | 30 | | | | | | 100 | | | | | | 485 | | | | | | 45 | | |
Sub-total
|
| | | | 85 | | | | | | 379 | | | | | | 32 | | | | | | 123 | | | | | | 598 | | | | | | 54 | | |
Total
|
| | | | 751 | | | | | | 3,908 | | | | | | 235 | | | | | | 751 | | | | | | 4,707 | | | | | | 346 | | |
| | |
NB APE
|
| |
VNB
|
| ||||||||||||||||||
|
1H2020-
1H2021 CAGR: CER basis |
| |
1H2020-
1H2021 CAGR: AER basis |
| |
1H2020-
1H2021 CAGR: CER basis |
| |
1H2020-
1H2021 CAGR: AER basis |
| ||||||||||||||
Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | |
Onshore
|
| | | | 36.1% | | | | | | 36.1% | | | | | | 73.0% | | | | | | 73.0% | | |
Offshore
|
| | | | 97.2% | | | | | | 97.2% | | | | | | (9.4%) | | | | | | (9.4%) | | |
Sub-total
|
| | | | 50.9% | | | | | | 50.9% | | | | | | 57.1% | | | | | | 57.1% | | |
Japan | | | | | | | | | | | | | | | | | | | | | | | | | |
COLI
|
| | | | (51.7%) | | | | | | (51.4%) | | | | | | (18.8%) | | | | | | (18.1%) | | |
RI
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | |
Individual
|
| | | | 17.1% | | | | | | 17.8% | | | | | | 50.5% | | | | | | 51.3% | | |
Sub-total
|
| | | | (24.5%) | | | | | | (24.1%) | | | | | | 28.3% | | | | | | 29.1% | | |
Thailand | | | | | | | | | | | | | | | | | | | | | | | | | |
TMB
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | |
SCB
|
| | | | (15.9%) | | | | | | (13.6%) | | | | | | 60.2% | | | | | | 65.2% | | |
Others
|
| | | | (18.1%) | | | | | | (16.2%) | | | | | | 30.1% | | | | | | 33.2% | | |
Sub-total
|
| | | | (27.0%) | | | | | | (25.0%) | | | | | | 39.5% | | | | | | 43.7% | | |
Emerging Markets | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions & partnerships / Discontinued business
|
| | | | 287.1% | | | | | | 293.5% | | | | | | 358.6% | | | | | | 366.6% | | |
Others
|
| | | | 22.7% | | | | | | 26.4% | | | | | | 45.7% | | | | | | 50.6% | | |
Sub-total
|
| | | | 40.9% | | | | | | 45.1% | | | | | | 64.8% | | | | | | 70.2% | | |
Total
|
| | | | (1.7%) | | | | | | (0.0%) | | | | | | 45.1% | | | | | | 47.5% | | |
| | |
Six months ended June 30, 2020
|
| |
Six months ended June 30, 2021
|
| ||||||||||||||||||
| | |
VNB/NB APE
|
| |
VNB/ PVNBP
|
| |
VNB/NB APE
|
| |
VNB/ PVNBP
|
| ||||||||||||
Hong Kong | | | | | | | | | | | | | | | | | | | | | | | | | |
Onshore
|
| | | | 39.9% | | | | | | 6.2% | | | | | | 50.7% | | | | | | 5.2% | | |
Offshore
|
| | | | 29.7% | | | | | | 6.7% | | | | | | 13.7% | | | | | | 3.5% | | |
Sub-total
|
| | | | 37.4% | | | | | | 6.3% | | | | | | 39.0% | | | | | | 4.9% | | |
Japan | | | | | | | | | | | | | | | | | | | | | | | | | |
COLI
|
| | | | 20.1% | | | | | | 3.5% | | | | | | 33.8% | | | | | | 6.1% | | |
RI
|
| | | | NA | | | | | | NA | | | | | | NA | | | | | | NA | | |
Individual
|
| | | | 65.5% | | | | | | 8.3% | | | | | | 84.1% | | | | | | 10.7% | | |
Sub-total
|
| | | | 38.0% | | | | | | 5.8% | | | | | | 64.7% | | | | | | 9.3% | | |
Thailand | | | | | | | | | | | | | | | | | | | | | | | | | |
TMB
|
| | | | 18.2% | | | | | | 4.5% | | | | | | NA | | | | | | NA | | |
SCB
|
| | | | 24.3% | | | | | | 5.2% | | | | | | 46.5% | | | | | | 9.1% | | |
Others
|
| | | | 29.3% | | | | | | 7.3% | | | | | | 46.6% | | | | | | 8.9% | | |
Sub-total
|
| | | | 24.3% | | | | | | 5.4% | | | | | | 46.5% | | | | | | 9.1% | | |
Emerging Markets | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions & partnerships / Discontinued business
|
| | | | 33.2% | | | | | | 9.4% | | | | | | 39.3% | | | | | | 8.2% | | |
Others
|
| | | | 37.7% | | | | | | 8.3% | | | | | | 44.9% | | | | | | 9.2% | | |
Sub-total
|
| | | | 37.3% | | | | | | 8.4% | | | | | | 43.8% | | | | | | 9.0% | | |
Total
|
| | | | 31.2% | | | | | | 6.0% | | | | | | 46.1% | | | | | | 7.4% | | |
| | |
Six months ended June 30, 2020
|
| |
Six months ended June 30, 2021
|
| ||||||||||||||||||||||||||||||
| | |
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| ||||||||||||||||||
Opening EV (1)
|
| | | | 4,327 | | | | | | 2,606 | | | | | | 6,933 | | | | | | 5,799 | | | | | | 3,303 | | | | | | 9,102 | | |
Acquisitions & partnerships / Discontinued business (2)
|
| | | | (205) | | | | | | 104 | | | | | | (100) | | | | | | (184) | | | | | | — | | | | | | (184) | | |
Expected return on EV (3)
|
| | | | 136 | | | | | | 59 | | | | | | 195 | | | | | | 153 | | | | | | 87 | | | | | | 239 | | |
VNB (4) (See note)
|
| | | | — | | | | | | 235 | | | | | | 235 | | | | | | — | | | | | | 346 | | | | | | 346 | | |
Operating variance and operating assumption change
(5) = (6)+(7) |
| | | | (27) | | | | | | (74) | | | | | | (101) | | | | | | (117) | | | | | | (58) | | | | | | (175) | | |
Operating variance (6)
|
| | | | (56) | | | | | | (76) | | | | | | (132) | | | | | | (117) | | | | | | (48) | | | | | | (165) | | |
Operating assumption change (7)
|
| | | | 29 | | | | | | 2 | | | | | | 32 | | | | | | — | | | | | | (10) | | | | | | (10) | | |
Total EV operating profit
(8) = (3)+(4)+(5) |
| | | | 109 | | | | | | 220 | | | | | | 329 | | | | | | 35 | | | | | | 375 | | | | | | 410 | | |
Economic variance and economic assumption change
(9) = (10)+(11) |
| | | | (979) | | | | | | 405 | | | | | | (574) | | | | | | (12) | | | | | | (131) | | | | | | (144) | | |
Economic variance (10)
|
| | | | (980) | | | | | | 709 | | | | | | (272) | | | | | | (14) | | | | | | (119) | | | | | | (133) | | |
Economic assumption change (11)
|
| | | | 1 | | | | | | (304) | | | | | | (303) | | | | | | 1 | | | | | | (12) | | | | | | (11) | | |
Other non-operating variance (12)
|
| | | | (76) | | | | | | (7) | | | | | | (83) | | | | | | 114 | | | | | | 44 | | | | | | 158 | | |
Total EV profit
(13)=(8)+(9)+(12) |
| | | | (946) | | | | | | 617 | | | | | | (329) | | | | | | 137 | | | | | | 288 | | | | | | 425 | | |
Capital movements (14)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | — | | | | | | 1,000 | | |
Corporate adjustments (15)
|
| | | | (34) | | | | | | (7) | | | | | | (42) | | | | | | (43) | | | | | | — | | | | | | (43) | | |
Financing (16)
|
| | | | 920 | | | | | | — | | | | | | 920 | | | | | | (88) | | | | | | — | | | | | | (88) | | |
Foreign exchange movement (17)
|
| | | | (59) | | | | | | (21) | | | | | | (80) | | | | | | (165) | | | | | | (161) | | | | | | (326) | | |
Closing EV
(18)=(1)+(2)+(13)+(14)+ (15)+(16)+(17) |
| | | | 4,004 | | | | | | 3,299 | | | | | | 7,303 | | | | | | 6,456 | | | | | | 3,430 | | | | | | 9,886 | | |
| | |
Six months
ended June 30, 2020 |
| |
Six months
ended June 30, 2021 |
| ||||||
Non-operating expense variance
(1) = (2) + (3) + (4) + (5) |
| | | | (75) | | | | | | 17 | | |
Mergers and acquisitions, business set and restructure related costs (2)
|
| | | | (39) | | | | | | (28) | | |
IPO related costs including incentive costs (3)
|
| | | | (22) | | | | | | (23) | | |
Implementation costs for new accounting standards and
other mandatory regulatory changes (4) |
| | | | (12) | | | | | | (12) | | |
Other non-recurring items (See note (1)) (5)
|
| | | | (1) | | | | | | 81 | | |
Industrial recruitment packages (6)
|
| | | | (20) | | | | | | (10) | | |
Others (See note (2)) (7)
|
| | | | 12 | | | | | | 150 | | |
Total (8) = (1) + (6) + (7)
|
| | | | (83) | | | | | | 158 | | |
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
EV operating profit after operating expense and commission variance (1)
|
| | | | 329 | | | | | | 410 | | |
Plus: Adjustment to reverse out operating expense and commission variance (2)
|
| | | | 114 | | | | | | 103 | | |
EV operating profit before expense and commission variance (3)=(1)+(2)
|
| | | | 443 | | | | | | 513 | | |
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||||||||||||||||||||||||||
| | |
Op. Entity
|
| |
Corp. & others
|
| |
Total
|
| |
Op. Entity
|
| |
Corp. & others
|
| |
Total
|
| ||||||||||||||||||
Opening free surplus (1)
|
| | | | 2,397 | | | | | | 368 | | | | | | 2,765 | | | | | | 2,879 | | | | | | 1,176 | | | | | | 4,055 | | |
Acquisitions & partnerships / Discontinued business (2)
|
| | | | 345 | | | | | | (719) | | | | | | (374) | | | | | | 71 | | | | | | (273) | | | | | | (202) | | |
Underlying free surplus generation
(3) = (4)+(5) |
| | | | 237 | | | | | | — | | | | | | 237 | | | | | | 223 | | | | | | — | | | | | | 223 | | |
Opening adjustment (4)
|
| | | | 53 | | | | | | — | | | | | | 53 | | | | | | 94 | | | | | | — | | | | | | 94 | | |
Underlying free surplus generation before adjustment (5)
|
| | | | 184 | | | | | | — | | | | | | 184 | | | | | | 129 | | | | | | — | | | | | | 129 | | |
Free surplus used to fund new business (6)
|
| | | | (217) | | | | | | — | | | | | | (217) | | | | | | (249) | | | | | | — | | | | | | (249) | | |
Net underlying free surplus generation
(7) = (3) + (6) |
| | | | 19 | | | | | | — | | | | | | 19 | | | | | | (26) | | | | | | — | | | | | | (26) | | |
Investment return variances and other
items (8) |
| | | | (1,163) | | | | | | (66) | | | | | | (1,229) | | | | | | (296) | | | | | | 16 | | | | | | (280) | | |
Capital movements (9)
|
| | | | 181 | | | | | | (181) | | | | | | — | | | | | | 60 | | | | | | 940 | | | | | | 1,000 | | |
Financing (10)
|
| | | | — | | | | | | 920 | | | | | | 920 | | | | | | — | | | | | | (88) | | | | | | (88) | | |
Closing free surplus
(11) = (1)+(2)+(7)+(8) +(9)+(10) |
| | | | 1,780 | | | | | | 320 | | | | | | 2,101 | | | | | | 2,688 | | | | | | 1,771 | | | | | | 4,459 | | |
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
Opening adjustments (1) = (2) + (3)
|
| | | | 53 | | | | | | 94 | | |
Methodology changes to Hong Kong terminal dividend reserves (2)
|
| | | | — | | | | | | 92 | | |
Other opening adjustments (3)
|
| | | | 53 | | | | | | 1 | | |
Non-economic assumption changes (excluding expense revisions) (4)
|
| | | | 29 | | | | | | — | | |
Total one-off variance (5) = (1) + (4)
|
| | | | 82 | | | | | | 94 | | |
Expense variance (6)
|
| | | | (163) | | | | | | (123) | | |
| | |
As at Dec 31, 2020
|
| |
As at June 30, 2021
|
| ||||||||||||||||||||||||||||||
|
EV
|
| |
Absolute
change from base case EV |
| |
% change
from base case EV |
| |
EV
|
| |
Absolute
change from base case EV |
| |
% change
from base case EV |
| ||||||||||||||||||||
Base case
|
| | | | 8,479 | | | | | | | | | | | | | | | | | | 8,669 | | | | | | | | | | | | | | |
Increase risk discount rate by 1.0%
|
| | | | 7,820 | | | | | | (659) | | | | | | (7.8%) | | | | | | 8,049 | | | | | | (620) | | | | | | (7.1%) | | |
Reduce risk discount rate by 1.0%
|
| | | | 9,302 | | | | | | 822 | | | | | | 9.7% | | | | | | 9,437 | | | | | | 768 | | | | | | 8.9% | | |
Increase net investment returns and risk discount rates by 0.5% p.a.(1)
|
| | | | 8,729 | | | | | | 250 | | | | | | 2.9% | | | | | | 8,935 | | | | | | 266 | | | | | | 3.1% | | |
Reduce net investment returns and risk discount rates by 0.5% p.a. (1)
|
| | | | 8,145 | | | | | | (334) | | | | | | (3.9%) | | | | | | 8,326 | | | | | | (343) | | | | | | (4.0%) | | |
Reduce net investment returns for private equity assets by 1% p.a.
|
| | | | 8,308 | | | | | | (172) | | | | | | (2.0%) | | | | | | 8,529 | | | | | | (140) | | | | | | (1.6%) | | |
Increase discontinuance and partial withdrawal rates by 10%
|
| | | | 8,375 | | | | | | (104) | | | | | | (1.2%) | | | | | | 8,532 | | | | | | (137) | | | | | | (1.6%) | | |
Reduce discontinuance and partial withdrawal rates by 10%
|
| | | | 8,613 | | | | | | 133 | | | | | | 1.6% | | | | | | 8,835 | | | | | | 166 | | | | | | 1.9% | | |
Extend peak lapse term for FWD Japan COLI SME Term business
|
| | | | 8,214 | | | | | | (266) | | | | | | (3.1%) | | | | | | 8,412 | | | | | | (257) | | | | | | (3.0%) | | |
Increase long term lapse rate to 6% for FWD Japan COLI SME Term business
|
| | | | 8,381 | | | | | | (99) | | | | | | (1.2%) | | | | | | 8,574 | | | | | | (96) | | | | | | (1.1%) | | |
Increase mortality and morbidity rates and loss ratios by 10%
|
| | | | 7,999 | | | | | | (481) | | | | | | (5.7%) | | | | | | 8,164 | | | | | | (505) | | | | | | (5.8%) | | |
Reduce mortality and morbidity rates and loss ratios by 10%
|
| | | | 8,970 | | | | | | 491 | | | | | | 5.8% | | | | | | 9,180 | | | | | | 511 | | | | | | 5.9% | | |
Increase acquisition and maintenance expenses by
10% |
| | | | 8,326 | | | | | | (154) | | | | | | (1.8%) | | | | | | 8,518 | | | | | | (152) | | | | | | (1.7%) | | |
Reduce acquisition and maintenance expenses by 10%
|
| | | | 8,633 | | | | | | 154 | | | | | | 1.8% | | | | | | 8,820 | | | | | | 151 | | | | | | 1.7% | | |
Appreciation of presentation currency by 5%
|
| | | | 8,177 | | | | | | (302) | | | | | | (3.6%) | | | | | | 8,366 | | | | | | (303) | | | | | | (3.5%) | | |
Depreciation of presentation currency by 5%
|
| | | | 8,785 | | | | | | 305 | | | | | | 3.6% | | | | | | 8,975 | | | | | | 306 | | | | | | 3.5% | | |
Increase equity prices by 10%
|
| | | | 8,644 | | | | | | 165 | | | | | | 1.9% | | | | | | 8,914 | | | | | | 244 | | | | | | 2.8% | | |
Reduce equity prices by 10%
|
| | | | 8,314 | | | | | | (166) | | | | | | (2.0%) | | | | | | 8,422 | | | | | | (247) | | | | | | (2.8%) | | |
| | |
Year ending Dec 31, 2020
|
| |
Six months ended June 30, 2021
|
| ||||||||||||||||||||||||||||||
|
VNB
|
| |
Absolute
change from base case |
| |
% change
from base case |
| |
VNB
|
| |
Absolute
change from base case |
| |
% change
from base case |
| ||||||||||||||||||||
Base case
|
| | | | 561 | | | | | | | | | | | | | | | | | | 346 | | | | | | | | | | | | | | |
Increase risk discount rate by 1.0%
|
| | | | 463 | | | | | | (98) | | | | | | (17.5%) | | | | | | 286 | | | | | | (60) | | | | | | (17.3%) | | |
Reduce risk discount rate by 1.0%
|
| | | | 685 | | | | | | 124 | | | | | | 22.0% | | | | | | 423 | | | | | | 77 | | | | | | 22.1% | | |
Increase net investment returns and risk discount rates by 0.5% p.a.
|
| | | | 670 | | | | | | 108 | | | | | | 19.3% | | | | | | 400 | | | | | | 54 | | | | | | 15.5% | | |
Reduce net investment returns and risk discount rates by 0.5% p.a.
|
| | | | 432 | | | | | | (129) | | | | | | (23.0%) | | | | | | 286 | | | | | | (60) | | | | | | (17.3%) | | |
Reduce net investment returns for private equity assets by 1% p.a.
|
| | | | 541 | | | | | | (21) | | | | | | (3.7%) | | | | | | 337 | | | | | | (9) | | | | | | (2.5%) | | |
Increase discontinuance and partial withdrawal rates
by 10% |
| | | | 525 | | | | | | (36) | | | | | | (6.5%) | | | | | | 323 | | | | | | (23) | | | | | | (6.7%) | | |
Reduce discontinuance and partial withdrawal rates
by 10% |
| | | | 603 | | | | | | 42 | | | | | | 7.4% | | | | | | 373 | | | | | | 26 | | | | | | 7.6% | | |
Increase mortality and morbidity rates and loss ratios by 10%
|
| | | | 470 | | | | | | (91) | | | | | | (16.2%) | | | | | | 300 | | | | | | (46) | | | | | | (13.3%) | | |
Reduce mortality and morbidity rates and loss ratios
by 10% |
| | | | 653 | | | | | | 91 | | | | | | 16.3% | | | | | | 393 | | | | | | 47 | | | | | | 13.7% | | |
Increase acquisition and maintenance expenses by 10%
|
| | | | 516 | | | | | | (46) | | | | | | (8.2%) | | | | | | 321 | | | | | | (25) | | | | | | (7.2%) | | |
Reduce acquisition and maintenance expenses by 10%
|
| | | | 607 | | | | | | 46 | | | | | | 8.2% | | | | | | 371 | | | | | | 25 | | | | | | 7.2% | | |
Revise acquisition unit cost loadings to eliminate adjusted operating expense variance for FWD HK, FWD Japan and FWD Thailand
|
| | | | 496 | | | | | | (65) | | | | | | (11.6%) | | | | | | 304 | | | | | | (42) | | | | | | (12.1%) | | |
Appreciation of presentation currency by 5%
|
| | | | 542 | | | | | | (19) | | | | | | (3.5%) | | | | | | 334 | | | | | | (12) | | | | | | (3.5%) | | |
Depreciation of presentation currency by 5%
|
| | | | 581 | | | | | | 19 | | | | | | 3.5% | | | | | | 358 | | | | | | 12 | | | | | | 3.5% | | |
| | | | | |
|
/s/ Michael Daly FIA
Michael Daly FIA
Principal & Consulting Actuary |
| |
/s/ Wen Yee Lee FIAA
Wen Yee Lee FIAA
Principal & Consulting Actuary |
|
| ACR: | | | Actuarial Consultant’s Report | |
| AER: | | | Actual Exchange Rate | |
| ANW: | | | Adjusted Net Worth | |
| BRI Life: | | | PT Asuransi BRI Life | |
| CAGR: | | | Compound Annual Growth Rate | |
| CER: | | | Constant Exchange Rate | |
| COLI: | | | Corporate Owned Life Insurance | |
| EV: | | | Embedded Value | |
| EV Equity: | | | Equity attributable to shareholders and reflects the Group EV, adjusted to include goodwill and other intangible assets attributable to shareholders | |
| EV Policy: | | | FWD Group EV Policy | |
| FWD Cambodia: | | | Bangkok Life Assurance (Cambodia) Plc. | |
| FWD Fuji Life: | | | FWD Fuji Life Insurance Company, Limited | |
| FWD Group: | | | FWD Group Holdings Limited (formerly known as PCGI Intermediate Holdings Limited) | |
| FWD Group Services: | | | FWD Group Services (Thailand) Co., Ltd. | |
| FWD HK: | | | Includes FWD Life (Bermuda) (except FWD Malaysia, FWD Vietnam and FWD VCLI), FWD Macau, FWD Life Assurance (Hong Kong) and FWD Life (Hong Kong) | |
| FWD Indonesia: | | | PT FWD Insurance Indonesia | |
| FWD Japan: | | | Includes FWD Fuji Life and FWD Reinsurance | |
|
FWD Life Assurance (Hong Kong):
|
| | FWD Life Assurance Company (Hong Kong) Limited | |
| FWD Life (Bermuda): | | | FWD Life Insurance Company (Bermuda) Limited | |
| FWD Life (Hong Kong): | | | FWD Life (Hong Kong) Limited | |
| FWD Life Indonesia: | | | PT FWD Life Indonesia | |
| FWD Macau: | | | FWD Life Insurance Company (Macau) Limited | |
| FWD Malaysia: | | | FWD Takaful Berhad | |
| FWD Philippines: | | | FWD Life Insurance Corporation | |
| FWD Reinsurance | | | FWD Reinsurance SPC, Ltd. | |
| FWD Singapore: | | | Includes FWD Singapore Pte. Ltd. and IPP Financial Advisers Pte. Ltd. | |
| FWD Thailand: | | | Includes FWD Life Insurance Public Company Limited, FWD Cambodia and FWD Group Services | |
| FWD VCLI: | | | FWD Assurance VietNam Company Limited | |
| FWD Vietnam: | | | Includes FWD Vietnam Life Insurance Company Limited and FWD VCLI | |
| FX rate: | | | Foreign Exchange Rate | |
| HKD: | | | HK Dollar | |
| IDR: | | | Indonesian Rupiah | |
| IFRS: | | | International Financial Reporting Standards | |
| IFRS accounts: | | | Consolidated financial statements of FWD Group Holdings Limited (formerly known as PCGI Intermediate Holdings Limited) for the six months ended June 30, 2020 and 2021 (unaudited) | |
| IPO: | | | Initial Public Offering | |
| IPP: | | | IPP Financial Advisers Pte. Ltd. | |
| JPY: | | | Japanese Yen | |
| MOP: | | | Macanese Pataca | |
| MYR: | | | Malaysia Ringgit | |
| NA: | | | Not Applicable / Not Available | |
| nm: | | | Not Material | |
| NB APE: | | | New Business Annual Premium Equivalent | |
| PHP: | | | Philippine Peso | |
| pps: | | | Percentage Points | |
| PVNBP: | | | Present Value of New Business Premium | |
| RBC: | | | Risk-based Capital | |
| RI: | | | One-off retrocession reinsurance business to FWD Reinsurance | |
| SCB: | | | Siam Commercial Bank | |
| SCB Life | | | SCB Life Assurance Public Company Limited | |
| SGD: | | | Singapore Dollar | |
| SME Term: | | | Small and Medium Enterprise Term Life | |
| TEV: | | | Traditional Embedded Value | |
| THB: | | | Thai Baht | |
| TMB: | | | Thai Military Bank | |
| USD: | | | US Dollar | |
| VIF: | | | Value of In-force Business after cost of capital | |
| VNB: | | | Value of New Business after cost of capital | |
| VND: | | | Vietnamese Dong | |
| YoY: | | | Year-on-year | |
| | |
FX rate used for EV
|
| |||||||||||||||
| | |
June 30, 2020
|
| |
Dec 31, 2020
|
| |
June 30, 2021
|
| |||||||||
Hong Kong Dollar (HKD)
|
| | | | 7.7501 | | | | | | 7.7519 | | | | | | 7.7652 | | |
Macanese Pataca (MOP)
|
| | | | 7.9808 | | | | | | 7.9872 | | | | | | 7.9936 | | |
Japanese Yen (JPY)
|
| | | | 107.7122 | | | | | | 103.1140 | | | | | | 110.5339 | | |
Thai Baht (THB)
|
| | | | 30.8852 | | | | | | 29.9527 | | | | | | 32.0287 | | |
Indonesian Rupiah (IDR)
|
| | | | 14,266.0000 | | | | | | 14,054.0000 | | | | | | 14,502.0000 | | |
Malaysia Ringgit (MYR)
|
| | | | 4.2808 | | | | | | 4.0177 | | | | | | 4.1528 | | |
Philippine Peso (PHP)
|
| | | | 49.8206 | | | | | | 48.0307 | | | | | | 48.8043 | | |
Singapore Dollar (SGD)
|
| | | | 1.3957 | | | | | | 1.3212 | | | | | | 1.3443 | | |
Vietnamese Dong (VND)
|
| | | | 23,206.0000 | | | | | | 23,083.0000 | | | | | | 23,021.0000 | | |
| | |
FX rate used for VNB and movement items in analysis of EV movement (EV AOM)
|
| |||||||||||||||||||||||||||
|
Quarterly average FX rate
(1H2020 VNB) |
| |
Average FX
rate (1H2020 EV AOM) |
| |
Quarterly average FX rate
(1H2020 VNB) |
| |||||||||||||||||||||||
|
FX rate
for 20201Q |
| |
FX rate for
20202Q |
| |
FX rate for
1H2020 |
| |
FX rate
for 20211Q |
| |
FX rate
for 20212Q |
| |||||||||||||||||
Hong Kong Dollar (HKD)
|
| | | | 7.7712 | | | | | | 7.7515 | | | | | | 7.7613 | | | | | | 7.7570 | | | | | | 7.7655 | | |
Macanese Pataca (MOP)
|
| | | | 8.0056 | | | | | | 7.9832 | | | | | | 7.9944 | | | | | | 7.9894 | | | | | | 7.9973 | | |
Japanese Yen (JPY)
|
| | | | 108.9471 | | | | | | 107.5355 | | | | | | 108.2413 | | | | | | 105.9469 | | | | | | 109.4680 | | |
Thai Baht (THB)
|
| | | | 31.2776 | | | | | | 31.9742 | | | | | | 31.6259 | | | | | | 30.2731 | | | | | | 31.3490 | | |
Indonesian Rupiah (IDR)
|
| | | | 14,204.7145 | | | | | | 14,926.7620 | | | | | | 14,565.7383 | | | | | | 14,154.7654 | | | | | | 14,391.8305 | | |
Malaysia Ringgit (MYR)
|
| | | | 4.1757 | | | | | | 4.3219 | | | | | | 4.2488 | | | | | | 4.0653 | | | | | | 4.1286 | | |
Philippine Peso (PHP)
|
| | | | 50.8368 | | | | | | 50.4535 | | | | | | 50.6452 | | | | | | 48.3001 | | | | | | 48.1794 | | |
Singapore Dollar (SGD)
|
| | | | 1.3851 | | | | | | 1.4121 | | | | | | 1.3986 | | | | | | 1.3322 | | | | | | 1.3328 | | |
Vietnamese Dong (VND)
|
| | | | 23,251.1046 | | | | | | 23,358.8376 | | | | | | 23,304.9711 | | | | | | 23,048.0472 | | | | | | 23,046.0154 | | |
Year ending December 31,
|
| |
Business plan projections as at December 31, 2020
|
| |||||||||||||||||||||||||||
|
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |||||||||||||||||
Hong Kong
|
| | | | 6 | | | | | | nm | | | | | | — | | | | | | — | | | | | | — | | |
Japan
|
| | | | 7 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | |
Thailand
|
| | | | 22 | | | | | | 4 | | | | | | — | | | | | | — | | | | | | — | | |
Emerging Markets
|
| | | | 20 | | | | | | 9 | | | | | | 4 | | | | | | 1 | | | | | | 1 | | |
Total | | | | | 55 | | | | | | 15 | | | | | | 4 | | | | | | 1 | | | | | | 1 | | |
Year ending June 30,
|
| |
Business plan projections as at June 30, 2021
|
| |||||||||||||||||||||||||||||||||
|
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
2026
|
| |
2027
|
| ||||||||||||||||||||
Hong Kong
|
| | | | 8 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Japan
|
| | | | 4 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Thailand
|
| | | | 10 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Emerging Markets
|
| | | | 18 | | | | | | 8 | | | | | | 3 | | | | | | 1 | | | | | | 1 | | | | | | nm | | |
Total | | | | | 40 | | | | | | 11 | | | | | | 3 | | | | | | 1 | | | | | | 1 | | | | | | nm | | |
Projection Year
|
| |
1
|
| |
2
|
| |
3
|
| |
4
|
| |
5
|
| |
6
|
| |
7
|
| |
8
|
| |
9
|
| |
10
|
| |
11
|
| |
12
|
| |
13
|
| |
14
|
| |
15
|
| |||||||||||||||||||||||||||||||||||||||||||||
2020 EV
(From Dec 31, 2020) |
| | | | 86 | | | | | | 84 | | | | | | 82 | | | | | | 79 | | | | | | 76 | | | | | | 68 | | | | | | 58 | | | | | | 49 | | | | | | 38 | | | | | | 28 | | | | | | 28 | | | | | | 29 | | | | | | 30 | | | | | | 30 | | | | | | 31 | | |
1H2021 EV (1)
(From June 30, 2021) |
| | | | 86 | | | | | | 84 | | | | | | 82 | | | | | | 79 | | | | | | 76 | | | | | | 68 | | | | | | 58 | | | | | | 49 | | | | | | 38 | | | | | | 28 | | | | | | 28 | | | | | | 29 | | | | | | 30 | | | | | | 30 | | | | | | 31 | | |
| | |
Six months
ended June 30, 2020 |
| |
Six months
ended June 30, 2021 |
| ||||||||||||||||||||||||||||||
|
ANW
|
| |
VIF
|
| |
EV
|
| |
ANW
|
| |
VIF
|
| |
EV
|
| ||||||||||||||||||||
Opening EV (1)
|
| | | | (1,143) | | | | | | 2,606 | | | | | | 1,463 | | | | | | 458 | | | | | | 3,303 | | | | | | 3,761 | | |
Acquisitions & partnerships / Discontinued business (2)
|
| | | | (205) | | | | | | 104 | | | | | | (100) | | | | | | (184) | | | | | | — | | | | | | (184) | | |
Expected return on EV (3)
|
| | | | 136 | | | | | | 59 | | | | | | 195 | | | | | | 153 | | | | | | 87 | | | | | | 239 | | |
VNB (4)
|
| | | | — | | | | | | 235 | | | | | | 235 | | | | | | — | | | | | | 346 | | | | | | 346 | | |
Operating variance and operating assumption change
(5)=(6)+(7) |
| | | | (27) | | | | | | (74) | | | | | | (101) | | | | | | (117) | | | | | | (58) | | | | | | (175) | | |
Operating variance (6)
|
| | | | (56) | | | | | | (76) | | | | | | (132) | | | | | | (117) | | | | | | (48) | | | | | | (165) | | |
Operating assumption change (7)
|
| | | | 29 | | | | | | 2 | | | | | | 32 | | | | | | — | | | | | | (10) | | | | | | (10) | | |
Total EV operating profit
(8)=(3)+(4)+(5) |
| | | | 109 | | | | | | 220 | | | | | | 329 | | | | | | 35 | | | | | | 375 | | | | | | 410 | | |
Economic variance and economic assumption change
(9) = (10)+(11) |
| | | | (960) | | | | | | 405 | | | | | | (556) | | | | | | (26) | | | | | | (131) | | | | | | (157) | | |
Economic variance (10)
|
| | | | (962) | | | | | | 709 | | | | | | (253) | | | | | | (27) | | | | | | (119) | | | | | | (146) | | |
Economic assumption change (11)
|
| | | | 1 | | | | | | (304) | | | | | | (303) | | | | | | 1 | | | | | | (12) | | | | | | (11) | | |
Other non-operating variance (12)
|
| | | | (75) | | | | | | (7) | | | | | | (82) | | | | | | 114 | | | | | | 44 | | | | | | 158 | | |
Total EV profit
(13)=(8)+(9)+(12) |
| | | | (926) | | | | | | 617 | | | | | | (309) | | | | | | 123 | | | | | | 288 | | | | | | 411 | | |
Capital movements (14)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | — | | | | | | 1,000 | | |
Corporate adjustments (15)
|
| | | | (34) | | | | | | (7) | | | | | | (42) | | | | | | (43) | | | | | | — | | | | | | (43) | | |
Financing (16)
|
| | | | (105) | | | | | | — | | | | | | (105) | | | | | | (93) | | | | | | — | | | | | | (93) | | |
Foreign exchange movement (17)
|
| | | | (59) | | | | | | (21) | | | | | | (80) | | | | | | (165) | | | | | | (161) | | | | | | (326) | | |
Closing EV
(18)=(1)+(2)+(13)+(14)+(15)+(16)+(17) |
| | | | (2,471) | | | | | | 3,299 | | | | | | 828 | | | | | | 1,096 | | | | | | 3,430 | | | | | | 4,526 | | |
| | |
Six months ended June 30, 2020
|
| |
Six months ended June 30, 2021
|
| ||||||||||||||||||||||||||||||
|
Op. Entity
|
| |
Group adj.
|
| |
Total
|
| |
Op. Entity
|
| |
Group adj.
|
| |
Total
|
| ||||||||||||||||||||
Opening free surplus (1)
|
| | | | 2,397 | | | | | | (5,103) | | | | | | (2,705) | | | | | | 2,879 | | | | | | (4,164) | | | | | | (1,286) | | |
Acquisitions & partnerships / Discontinued business (2)
|
| | | | 345 | | | | | | (719) | | | | | | (374) | | | | | | 71 | | | | | | (273) | | | | | | (202) | | |
Underlying free surplus generation (3)=(4)+(5)
|
| | | | 237 | | | | | | — | | | | | | 237 | | | | | | 223 | | | | | | — | | | | | | 223 | | |
Opening adjustment (4)
|
| | | | 53 | | | | | | — | | | | | | 53 | | | | | | 94 | | | | | | — | | | | | | 94 | | |
Underlying free surplus generation before
adjustment (5) |
| | | | 184 | | | | | | — | | | | | | 184 | | | | | | 129 | | | | | | — | | | | | | 129 | | |
Free surplus used to fund new business (6)
|
| | | | (217) | | | | | | — | | | | | | (217) | | | | | | (249) | | | | | | — | | | | | | (249) | | |
Net underlying free surplus generation (7)=(3)+(6)
|
| | | | 19 | | | | | | — | | | | | | 19 | | | | | | (26) | | | | | | — | | | | | | (26) | | |
Investment return variances and other items
(8) |
| | | | (1,163) | | | | | | (47) | | | | | | (1,209) | | | | | | (296) | | | | | | 2 | | | | | | (294) | | |
Capital movements (9)
|
| | | | 181 | | | | | | (181) | | | | | | — | | | | | | 60 | | | | | | 940 | | | | | | 1,000 | | |
Financing (10)
|
| | | | — | | | | | | (105) | | | | | | (105) | | | | | | — | | | | | | (93) | | | | | | (93) | | |
Closing free surplus
(11)=(1)+(2)+(7)+(8)+(9) +(10) |
| | | | 1,780 | | | | | | (6,155) | | | | | | (4,374) | | | | | | 2,688 | | | | | | (3,589) | | | | | | (901) | | |
| | |
As at June 30, 2020
|
| |||||||||||||||
|
ANW
|
| |
VIF
|
| |
EV
|
| |||||||||||
Operating entity EV
|
| | | | 3,683 | | | | | | 3,789 | | | | | | 7,472 | | |
Plus: Corporate & Other net assets
|
| | | | 320 | | | | | | — | | | | | | 320 | | |
Less: Unallocated Group Office expenses
|
| | | | — | | | | | | (490) | | | | | | (490) | | |
Group EV (gross of financing)
|
| | | | 4,004 | | | | | | 3,299 | | | | | | 7,303 | | |
Less: Financing
|
| | | | (6,475) | | | | | | — | | | | | | (6,475) | | |
Group EV (net of financing)
|
| | | | (2,471) | | | | | | 3,299 | | | | | | 828 | | |
| | |
As at June 30, 2020
|
| |||
Group EV (gross of financing)
|
| | | | 7,303 | | |
Plus: Goodwill and other intangible assets
|
| | | | 3,295 | | |
EV equity (gross of financing)
|
| | | | 10,597 | | |
Less: Financing | | | | | | | |
— Borrowings
|
| | | | (4,623) | | |
— Perpetual securities
|
| | | | (1,852) | | |
EV equity (net of financing)
|
| | | | 4,122 | | |
CONTENTS
|
| |
Pages
|
| |||
Report of Independent Registered Public Accounting Firm | | | | | F-2 | | |
Consolidated Financial Statements: | | | | | | | |
| | | | F-8 | | | |
| | | | F-10 | | | |
| | | | F-12 | | | |
| | | | F-15 | | | |
| | | | F-17 | | | |
| | | | F-143 | | | |
| | | | F-149 | | | |
| | | | F-150 | | | |
| | | | F-151 | | | |
| | | | F-153 | | | |
| | | | F-155 | | | |
| | | | F-157 | | |
| | | | Valuation of life insurance contract liabilities | |
| Description of the Matter | | |
The Group recorded insurance contract liabilities of US$45,181 million as at December 31, 2020 in its consolidated statement of financial position. As discussed in Notes 2 and 22, life insurance contract liabilities of $45,153 million as at December 31, 2020 are reported gross of reinsurance ceded and represent management’s estimate of the amount which, together with estimated future premiums and net investment income, will be sufficient to pay estimated future policyholder benefits on insurance policies in-force. Life insurance contract liabilities are determined using a net level premium valuation method which represents the present value of the estimated future policy benefits to be paid, less the present value of estimated future net premiums to be collected from policyholders. The valuation of life insurance contract liabilities is based on the projection of cash flows. Cash flows related to life insurance contract liabilities have two major components: a best estimate assumption and a provision for adverse deviation. Best estimates are made with respect to key assumptions including mortality, morbidity, expected investment yields, policyholder dividends (for other participating business), surrenders and expenses set at the policy inception date. These assumptions remain locked in thereafter, unless a deficiency arises upon liability adequacy testing. A provision for adverse deviation is recorded to reflect the inherent uncertainty related to the timing and amount of the best estimate assumptions and is determined by including a margin of conservatism for each assumption included within the best estimate.
Auditing the valuation of life insurance contract liabilities was complex because there was a high degree of subjectivity applied in management’s methods and assumptions used in measuring life insurance contract liabilities. The high degree of subjectivity was primarily related to the complexity of the cash flow models, the selection and use of assumptions, particularly lapse, mortality, investment return and expense assumptions, and the interrelationship of these variables in the calculations.
|
|
|
How We Addressed the Matter in Our Audit
|
| | We involved actuarial specialists to assist with our audit procedures which, included, among others, evaluating the methodology and assumptions with respect to compliance with the Group’s accounting policies. These procedures included assessing the significant assumptions used by management, comparing the significant assumptions noted above to historical experience and observable market data. In addition, we performed an independent recalculation of a sample of contracts which we compared to the actuarial model used by management. | |
| | | | Goodwill and distribution rights-related intangible asset impairment assessment | |
| Description of the Matter | | |
At December 31, 2020, the Group had US$3,531 million of intangible assets which included US$1,615 million of goodwill and US$1,786 million of acquired distribution rights-related intangible assets. The Group’s impairment assessment of goodwill is performed by comparing the carrying amount of the cash generating unit (“CGU”), including goodwill, to the recoverable amount of that CGU. If the recoverable amount of the CGU exceeds the carrying amount of the CGU, the goodwill allocated to that CGU shall be regarded as not impaired. The recoverable amount is the value in use of the CGU unless otherwise stated. The value in use is calculated as an actuarially determined appraisal value, based on the embedded value with respect to the in-force business together with the value of future new business (“VNB”).
The Group performs an impairment assessment of the distribution rights-related intangible assets when events and circumstances have occurred that would indicate that the carrying amount of the intangibles exceeded its recoverable amount. Determining the recoverable amount of the intangibles is sensitive to significant assumptions such as the discount rate, which reflects the market assessment of the time value of money and the risks specific to the operations.
The estimation of recoverable amounts required management to make significant estimates and assumptions. Auditing the Group’s impairment assessment of goodwill required especially challenging auditor judgment due to the high degree of subjectivity applied by management in determining the VNB multipliers and discount rates. Auditing the distribution rights-related intangible assets required especially challenging auditor judgment due to the high degree of subjectivity applied by management in determining the discount rates. Changes in these assumptions could have a significant impact on either the carrying value of goodwill or the distribution rights- related intangible assets, the amount of any impairment charge, or both.
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How We Addressed the Matter in Our Audit
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| |
As regards to distribution rights-related intangible assets, an impairment assessment is performed if impairment indicators are noted. To audit the impairment assessment performed by management, we involved actuarial specialists to assist with our audit procedures which included, among others, comparing the discount rate used in the impairment assessment to the range of market observable values for similar operations.
As regards to the goodwill, we involved actuarial specialists to assist with our audit procedures which included, among others, an evaluation of the methodology applied by management with those methods used in prior periods. To assess the significant assumptions such as discount rates and VNB multipliers used by management, we compared the significant assumptions noted above to current industry and economic trends. We reviewed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in recoverable amounts that would result from changes in the assumptions.
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|
| | | | Purchase price allocation (“PPA”) in business acquisitions | |
| Description of the Matter | | |
As described in Note 5, the Group completed three business acquisitions (the “Acquisitions”) during 2020 for a total net consideration of US$738 million. All of the Acquisitions have been accounted for using the acquisition method for recording business combinations. The excess of the purchase price over the estimated fair value of the assets and liabilities acquired, including intangible assets, at the Acquisitions’ dates was allocated to goodwill. Out of the total goodwill of US$1,615 million and the total insurance contract liabilities of US$45,181 million on the balance sheet, US$171 million of goodwill and US$2,621 million of insurance liabilities are attributable to the Acquisitions.
The Group, with the assistance of a third-party valuation firm, calculated the present value of future profits (“PVFP”) to emerge on the acquired in-force block of contracts. The determination of the risk adjusted discount rates used in the calculation required significant management judgment. Auditing the PVFP for the Acquisitions involved subjectivity in evaluating the risk adjusted discount rates used by management to calculate PVFP. Changes in the risk adjusted discount rates could have a significant impact on the PVFP.
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How We Addressed the Matter in Our Audit
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| | We involved actuarial specialists to assist with our audit procedures which included, among others, comparing the risk adjusted discount rate used in the calculation of PVFP to the range of market observable values for similar operations. We also assessed the fair value of the other identified assets acquired against observable market transactions on the date of acquisition. | |
| | | | Assessment of recoverability of deferred tax assets | |
| Description of the Matter | | |
The Group recorded US$5 million of deferred tax assets as at December 31, 2020. As described in Note 9, deferred tax assets are recognized to the extent that sufficient future taxable profits will be available for realization. The Group has not recognized tax losses of US$527 million as at December 31, 2020 as it is not considered probable that sufficient taxable profits will be available against which these tax losses can be further utilized in the foreseeable future.
Auditing the recoverability of these deferred tax assets is complex as it is dependent on the generation of future taxable income across multiple jurisdictions. Significant judgment and estimation are required to assess the sufficiency of future taxable income to utilize the recognized deferred tax assets. Management considers sources of taxable income including the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in order to assess the probability that the deferred tax assets will be realized. A high degree of judgment is required in assessing the significant assumptions and judgments that are reflected in the projections of future taxable income.
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How We Addressed the Matter in Our Audit
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| | We evaluated the methods, assumptions, and judgments used by management to determine whether a deferred tax asset would be realized in the future. With the assistance of our tax professionals, we evaluated whether the sources of management’s estimated taxable income were of the appropriate character and sufficient to utilize the deferred tax assets under the relevant tax law. We evaluated management’s ability to accurately estimate taxable income by comparing actual results to management’s historical estimates and evaluated the scheduled reversal of deferred tax liabilities used in the recoverability assessment of deferred tax assets by assessing whether the future years when temporary differences reverse are known based on the transactions underlying the temporary differences. | |
US$m
|
| |
Notes
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| ||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | | |
Premiums and fee income
|
| | | | | | | | | | 5,053 | | | | | | 6,047 | | | | | | 8,776 | | |
Premiums ceded to reinsurers
|
| | | | | | | | | | (898) | | | | | | (920) | | | | | | (1,094) | | |
Net premiums and fee income
|
| | | | | | | | | | 4,155 | | | | | | 5,127 | | | | | | 7,682 | | |
Investment return
|
| | | | 7 | | | | | | 429 | | | | | | 955 | | | | | | 1,581 | | |
Other operating revenue
|
| | | | 7 | | | | | | 104 | | | | | | 150 | | | | | | 224 | | |
Total revenue
|
| | | | | | | | | | 4,688 | | | | | | 6,232 | | | | | | 9,487 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance and investment contract benefits
|
| | | | | | | | | | 4,402 | | | | | | 5,362 | | | | | | 7,941 | | |
Insurance and investment contract benefits ceded
|
| | | | | | | | | | (639) | | | | | | (477) | | | | | | (646) | | |
Net insurance and investment contract benefits
|
| | | | | | | | | | 3,763 | | | | | | 4,885 | | | | | | 7,295 | | |
Commission and commission related expenses
|
| | | | | | | | | | 299 | | | | | | 416 | | | | | | 832 | | |
General expenses
|
| | | | | | | | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | |
Finance costs
|
| | | | | | | | | | 31 | | | | | | 109 | | | | | | 209 | | |
Other expenses
|
| | | | | | | | | | 104 | | | | | | 155 | | | | | | 157 | | |
Total expenses
|
| | | | 8 | | | | | | 4,937 | | | | | | 6,575 | | | | | | 9,705 | | |
Loss before share of profit from associates and a joint venture
|
| | | | | | | | | | (249) | | | | | | (343) | | | | | | (218) | | |
Share of profit/(loss) from associates and a joint venture
|
| | | | 12 | | | | | | 18 | | | | | | 7 | | | | | | (1) | | |
Loss before tax from continuing operations
|
| | | | | | | | | | (231) | | | | | | (336) | | | | | | (219) | | |
Tax expense attributable to policyholders’ returns
|
| | | | | | | | | | — | | | | | | (1) | | | | | | (4) | | |
Loss from continuing operations before tax attributable
to shareholders’ profits |
| | | | | | | | | | (231) | | | | | | (337) | | | | | | (223) | | |
Tax benefit/(expense) from continuing operations
|
| | | | 9 | | | | | | 33 | | | | | | 20 | | | | | | (53) | | |
Tax expense attributable to policyholders’ returns
|
| | | | | | | | | | — | | | | | | 1 | | | | | | 4 | | |
Tax benefit/(expense) attributable to shareholders’ profits
|
| | | | | | | | | | 33 | | | | | | 21 | | | | | | (49) | | |
Loss from continuing operations after tax
|
| | | | | | | | | | (198) | | | | | | (316) | | | | | | (272) | | |
Profit/(Loss) from discontinued operations, net of
tax |
| | | | 5 | | | | | | 2 | | | | | | (16) | | | | | | 20 | | |
Net loss
|
| | | | | | | | | | (196) | | | | | | (332) | | | | | | (252) | | |
Loss from continuing operations after tax attributable to:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | | | | | | | (171) | | | | | | (266) | | | | | | (257) | | |
Perpetual securities
|
| | | | | | | | | | 26 | | | | | | 38 | | | | | | 65 | | |
Non-controlling interests
|
| | | | | | | | | | (53) | | | | | | (88) | | | | | | (80) | | |
Net Loss attributable to: | | | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | | | | | | | (169) | | | | | | (278) | | | | | | (243) | | |
Perpetual securities
|
| | | | | | | | | | 26 | | | | | | 38 | | | | | | 65 | | |
Non-controlling interests
|
| | | | | | | | | | (53) | | | | | | (92) | | | | | | (74) | | |
Loss per share from continuing operations (US$): | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 10 | | | | | | (0.29) | | | | | | (0.46) | | | | | | (0.44) | | |
Diluted
|
| | | | 10 | | | | | | (0.29) | | | | | | (0.46) | | | | | | (0.44) | | |
Loss per share (US$): | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 10 | | | | | | (0.29) | | | | | | (0.48) | | | | | | (0.41) | | |
Diluted
|
| | | | 10 | | | | | | (0.29) | | | | | | (0.48) | | | | | | (0.41) | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Net loss
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | |
OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | | | | | | | | |
Item that may be reclassified subsequently to profit or loss
|
| | | | |||||||||||||||
Fair value gains/(losses) on available for sale financial assets (net of tax of: December 31, 2018 US$(63m), December 31, 2019 US$217m and December 31, 2020 US$114m)
|
| | | | (296) | | | | | | 934 | | | | | | 691 | | |
Fair value gains/(losses) on available for sale financial assets transferred to income (net of tax of: December 31, 2018 US$6m, December 31, 2019 US$(13m) and December 31, 2020 US$(25m))
|
| | | | 14 | | | | | | (55) | | | | | | (166) | | |
Cash flow hedges
|
| | | | — | | | | | | 12 | | | | | | (24) | | |
Foreign currency translation adjustments
|
| | | | — | | | | | | 227 | | | | | | 7 | | |
Share of other comprehensive income/(loss) from associates and a joint venture
|
| | | | (4) | | | | | | 3 | | | | | | 4 | | |
Total other comprehensive income/(loss)
|
| | | | (286) | | | | | | 1,121 | | | | | | 512 | | |
Total comprehensive income/(loss)
|
| | | | (482) | | | | | | 789 | | | | | | 260 | | |
Total comprehensive income/(loss) attributable to: | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | (390) | | | | | | 569 | | | | | | 126 | | |
Perpetual securities
|
| | | | 26 | | | | | | 38 | | | | | | 65 | | |
Non-controlling interests
|
| | | | (118) | | | | | | 182 | | | | | | 69 | | |
US$m
|
| |
Notes
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| ||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets
|
| | | | 11 | | | | | | 1,671 | | | | | | 3,487 | | | | | | 3,531 | | |
Investments in associates and a joint venture
|
| | | | 12 | | | | | | 300 | | | | | | 296 | | | | | | 307 | | |
Property, plant and equipment
|
| | | | 13 | | | | | | 62 | | | | | | 184 | | | | | | 194 | | |
Investment property
|
| | | | 14 | | | | | | 306 | | | | | | 542 | | | | | | 609 | | |
Reinsurance assets
|
| | | | 15 | | | | | | 2,335 | | | | | | 2,880 | | | | | | 3,232 | | |
Deferred acquisition costs
|
| | | | 16 | | | | | | 2,747 | | | | | | 3,766 | | | | | | 4,591 | | |
Financial investments
|
| | | | 17,19 | | | | | | | | | | | | | | | | | | | | |
Loans and deposits
|
| | | | | | | | | | 782 | | | | | | 1,701 | | | | | | 1,754 | | |
Available for sale debt securities
|
| | | | | | | | | | 16,709 | | | | | | 30,837 | | | | | | 37,839 | | |
At fair value through profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | | | | | | | 60 | | | | | | 109 | | | | | | 129 | | |
Equity securities
|
| | | | | | | | | | 2,634 | | | | | | 4,111 | | | | | | 5,740 | | |
Derivative financial instruments
|
| | | | 18 | | | | | | 30 | | | | | | 193 | | | | | | 180 | | |
| | | | | | | | | | | 20,215 | | | | | | 36,951 | | | | | | 45,642 | | |
Deferred tax assets
|
| | | | 9 | | | | | | 9 | | | | | | 1 | | | | | | 5 | | |
Current tax recoverable
|
| | | | | | | | | | 6 | | | | | | 19 | | | | | | 24 | | |
Other assets
|
| | | | 20 | | | | | | 590 | | | | | | 909 | | | | | | 1,285 | | |
Cash and cash equivalents
|
| | | | 21 | | | | | | 1,493 | | | | | | 1,911 | | | | | | 2,730 | | |
Assets classified as held-for-sale
|
| | | | 5 | | | | | | 346 | | | | | | 359 | | | | | | 400 | | |
Total assets
|
| | | | | | | | | | 30,080 | | | | | | 51,305 | | | | | | 62,550 | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance contract liabilities
|
| | | | 22 | | | | | | 22,731 | | | | | | 37,342 | | | | | | 45,181 | | |
Investment contract liabilities
|
| | | | 23 | | | | | | 316 | | | | | | 314 | | | | | | 300 | | |
Deferred ceding commission
|
| | | | 25 | | | | | | 538 | | | | | | 724 | | | | | | 990 | | |
Borrowings
|
| | | | 26 | | | | | | 593 | | | | | | 3,946 | | | | | | 3,457 | | |
Derivative financial instruments
|
| | | | 18 | | | | | | 21 | | | | | | 167 | | | | | | 214 | | |
Provisions
|
| | | | | | | | | | 8 | | | | | | 19 | | | | | | 21 | | |
Deferred tax liabilities
|
| | | | 9 | | | | | | 152 | | | | | | 484 | | | | | | 578 | | |
Current tax liabilities
|
| | | | | | | | | | 30 | | | | | | 26 | | | | | | 51 | | |
Other liabilities
|
| | | | 27 | | | | | | 1,322 | | | | | | 2,394 | | | | | | 3,155 | | |
Liabilities directly associated with assets classified as held-for-sale
|
| | | | 5 | | | | | | 346 | | | | | | 359 | | | | | | 378 | | |
Total liabilities
|
| | | | | | | | | | 26,057 | | | | | | 45,775 | | | | | | 54,325 | | |
EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | |
Share capital and share premium
|
| | | | 28 | | | | | | 2,329 | | | | | | 2,329 | | | | | | 4,045 | | |
Other reserves
|
| | | | 28 | | | | | | 51 | | | | | | 58 | | | | | | 65 | | |
Accumulated losses
|
| | | | | | | | | | (58) | | | | | | (305) | | | | | | (390) | | |
Amounts reflected in other comprehensive income
|
| | | | | | | | | | (7) | | | | | | 836 | | | | | | 1,178 | | |
US$m
|
| |
Notes
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| ||||||||||||
Fair value reserve
|
| | | | 28 | | | | | | (11) | | | | | | 650 | | | | | | 1,004 | | |
Cash flow hedge reserve
|
| | | | 28 | | | | | | (3) | | | | | | 6 | | | | | | (11) | | |
Foreign currency translation reserve
|
| | | | 28 | | | | | | 4 | | | | | | 175 | | | | | | 178 | | |
Share of other comprehensive income of associates and a joint venture
|
| | | | | | | | | | 3 | | | | | | 5 | | | | | | 7 | | |
Total equity attributable to Shareholders of the
Company |
| | | | | | | | | | 2,315 | | | | | | 2,918 | | | | | | 4,898 | | |
Perpetual securities
|
| | | | 28 | | | | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | |
Non-controlling interests
|
| | | | 28 | | | | | | 711 | | | | | | 1,004 | | | | | | 1,720 | | |
Total equity
|
| | | | | | | | | | 4,023 | | | | | | 5,530 | | | | | | 8,225 | | |
Total liabilities and equity
|
| | | | | | | | | | 30,080 | | | | | | 51,305 | | | | | | 62,550 | | |
|
/s/ Ronald Arculli
Director
|
| |
/s/ Huynh Thanh Phong
Director
|
|
| | | | | | | | |
Attributable to Shareholders of the Company
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
US$m
|
| |
Notes
|
| |
Share Capital
and share premium |
| |
Other
reserves |
| |
Accumulated
losses |
| |
Fair value
reserve |
| |
Cash flow
hedge reserve |
| |
Foreign
currency translation reserve |
| |
Share of other
comprehensive income of associate and joint venture |
| |
Perpetual
securities |
| |
Non-
controlling interests |
| |
Total
equity |
| |||||||||||||||||||||||||||||||||
Balance as at January 1, 2018
|
| | | | | | | | | | 2,329 | | | | | | 37 | | | | | | (46) | | | | | | 212 | | | | | | (3) | | | | | | 4 | | | | | | 6 | | | | | | 795 | | | | | | 657 | | | | | | 3,991 | | |
Net gain/(loss)
|
| | | | | | | | | | — | | | | | | — | | | | | | (169) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 26 | | | | | | (53) | | | | | | (196) | | |
Fair value gains/(losses) on available for
sale financial assets |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (230) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (66) | | | | | | (296) | | |
Fair value gains/(losses) on available for
sale financial assets transferred to income on disposal |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 10 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4 | | | | | | 14 | | |
Foreign currency translation adjustments
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | |
Share of other comprehensive loss from
associates and a joint venture |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3) | | | | | | — | | | | | | (1) | | | | | | (4) | | |
Total comprehensive income/(loss) for the period
|
| | | | | | | | | | — | | | | | | — | | | | | | (169) | | | | | | (220) | | | | | | — | | | | | | 2 | | | | | | (3) | | | | | | 26 | | | | | | (118) | | | | | | (482) | | |
Issuance of shares by subsidiaries
|
| | | | 28 | | | | | | — | | | | | | (16) | | | | | | 160 | | | | | | (6) | | | | | | — | | | | | | (2) | | | | | | — | | | | | | — | | | | | | 163 | | | | | | 299 | | |
Distribution paid
|
| | | | 28 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (22) | | | | | | — | | | | | | (22) | | |
Share-based compensation
|
| | | | 32 | | | | | | — | | | | | | 29 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9 | | | | | | 38 | | |
Acquisition of non-controlling
interests |
| | | | 28 | | | | | | — | | | | | | — | | | | | | (3) | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of perpetual securities
|
| | | | 28 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 198 | | | | | | — | | | | | | 198 | | |
Others
|
| | | | | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | |
Balance as at December 31, 2018
|
| | | | | | | | | | 2,329 | | | | | | 51 | | | | | | (58) | | | | | | (11) | | | | | | (3) | | | | | | 4 | | | | | | 3 | | | | | | 997 | | | | | | 711 | | | | | | 4,023 | | |
| | | | | | | | |
Attributable to Shareholders of the Company
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
US$m
|
| |
Notes
|
| |
Share Capital
and share premium |
| |
Other
reserves |
| |
Accumulated
losses |
| |
Fair value
reserve |
| |
Cash flow
hedge reserve |
| |
Foreign
currency translation reserve |
| |
Share of other
comprehensive income of associate and joint venture |
| |
Perpetual
securities |
| |
Non-
controlling interests |
| |
Total
equity |
| |||||||||||||||||||||||||||||||||
Balance as at January 1, 2019
|
| | | | | | | | | | 2,329 | | | | | | 51 | | | | | | (58) | | | | | | (11) | | | | | | (3) | | | | | | 4 | | | | | | 3 | | | | | | 997 | | | | | | 711 | | | | | | 4,023 | | |
Net gain/(loss)
|
| | | | | | | | | | — | | | | | | — | | | | | | (278) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 38 | | | | | | (92) | | | | | | (332) | | |
Fair value gains on available for sale financial assets
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 704 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 230 | | | | | | 934 | | |
Fair value gains on available for sale
financial assets transferred to income on disposal |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (39) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16) | | | | | | (55) | | |
Foreign currency translation adjustments
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 171 | | | | | | — | | | | | | — | | | | | | 56 | | | | | | 227 | | |
Cash flow hedges
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3 | | | | | | 12 | | |
Share of other comprehensive income from associates and a joint venture
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | 1 | | | | | | 3 | | |
Total comprehensive income/(loss) for the period
|
| | | | | | | | | | — | | | | | | — | | | | | | (278) | | | | | | 665 | | | | | | 9 | | | | | | 171 | | | | | | 2 | | | | | | 38 | | | | | | 182 | | | | | | 789 | | |
Acquisition of subsidiaries
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 38 | | | | | | 38 | | |
Issuance of shares by subsidiaries
|
| | | | 28 | | | | | | — | | | | | | (18) | | | | | | 36 | | | | | | (4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 66 | | | | | | 80 | | |
Distribution paid
|
| | | | 28 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (27) | | | | | | — | | | | | | (27) | | |
Share-based compensation
|
| | | | 32 | | | | | | — | | | | | | 23 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | 30 | | |
Acquisition of non-controlling
interests |
| | | | 28 | | | | | | — | | | | | | — | | | | | | (3) | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | (3) | | |
Issuance of perpetual securities
|
| | | | 28 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 600 | | | | | | — | | | | | | 600 | | |
Transfer to legal reserve
|
| | | | | | | | | | — | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Others
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | |
Balance as at December 31, 2019
|
| | | | | | | | | | 2,329 | | | | | | 58 | | | | | | (305) | | | | | | 650 | | | | | | 6 | | | | | | 175 | | | | | | 5 | | | | | | 1,608 | | | | | | 1,004 | | | | | | 5,530 | | |
| | | | | | | | |
Attributable to Shareholders of the Company
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
US$m
|
| |
Notes
|
| |
Share Capital
and share premium |
| |
Other
reserves |
| |
Accumulated
losses |
| |
Fair value
reserve |
| |
Cash flow
hedge reserve |
| |
Foreign
currency translation reserve |
| |
Share of other
comprehensive income of associate and joint venture |
| |
Perpetual
securities |
| |
Non-
controlling interests |
| |
Total
equity |
| |||||||||||||||||||||||||||||||||
Balance as at January 1, 2020
|
| | | | | | | | | | 2,329 | | | | | | 58 | | | | | | (305) | | | | | | 650 | | | | | | 6 | | | | | | 175 | | | | | | 5 | | | | | | 1,608 | | | | | | 1,004 | | | | | | 5,530 | | |
Net gain/(loss)
|
| | | | | | | | | | — | | | | | | — | | | | | | (243) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 65 | | | | | | (74) | | | | | | (252) | | |
Fair value gains/(losses) on available for
sale financial assets |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 511 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 180 | | | | | | 691 | | |
Fair value gains/(losses) on available for
sale financial assets transferred to income on disposal |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (121) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (45) | | | | | | (166) | | |
Foreign currency translation adjustments
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7) | | | | | | — | | | | | | — | | | | | | 14 | | | | | | 7 | | |
Cash flow hedges
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (17) | | | | | | — | | | | | | — | | | | | | — | | | | | | (7) | | | | | | (24) | | |
Share of other comprehensive income from associates and a joint venture
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 1 | | | | | | 4 | | |
Total comprehensive income/(loss) for the period
|
| | | | | | | | | | — | | | | | | — | | | | | | (243) | | | | | | 390 | | | | | | (17) | | | | | | (7) | | | | | | 3 | | | | | | 65 | | | | | | 69 | | | | | | 260 | | |
Capitalization for the Transfer and
Novation of Borrowings and Related Party Balances pursuant to Reorganization |
| | | | 1.2.2 | | | | | | 1,716 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,716 | | |
Issuance of shares by subsidiaries
|
| | | | 28 | | | | | | — | | | | | | (10) | | | | | | (128) | | | | | | 20 | | | | | | — | | | | | | (1) | | | | | | — | | | | | | — | | | | | | 331 | | | | | | 212 | | |
Distribution paid
|
| | | | 28 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (65) | | | | | | — | | | | | | (65) | | |
Share-based compensation
|
| | | | 32 | | | | | | — | | | | | | 18 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | 25 | | |
Acquisition of non-controlling
interests |
| | | | 28 | | | | | | — | | | | | | 1 | | | | | | (150) | | | | | | 21 | | | | | | — | | | | | | 4 | | | | | | — | | | | | | — | | | | | | 1 | | | | | | (123) | | |
Transactions with non-controlling interests
|
| | | | 28 | | | | | | — | | | | | | (4) | | | | | | 445 | | | | | | (72) | | | | | | — | | | | | | 3 | | | | | | — | | | | | | — | | | | | | 308 | | | | | | 680 | | |
Disposal of subsidiary
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (5) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | (6) | | |
Transfer to legal reserve
|
| | | | | | | | | | — | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Others
|
| | | | | | | | | | — | | | | | | 1 | | | | | | (8) | | | | | | — | | | | | | — | | | | | | 4 | | | | | | (1) | | | | | | (1) | | | | | | 1 | | | | | | (4) | | |
Balance as at December 31, 2020
|
| | | | | | | | | | 4,045 | | | | | | 65 | | | | | | (390) | | | | | | 1,004 | | | | | | (11) | | | | | | 178 | | | | | | 7 | | | | | | 1,607 | | | | | | 1,720 | | | | | | 8,225 | | |
US$m
|
| |
Notes
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Loss before tax: | | | | | | | | | | | | | | | | | | | | | | | | | |
From continuing operations
|
| | | | | | | | | | (231) | | | | | | (336) | | | | | | (219) | | |
From discontinued operations
|
| | | | 5 | | | | | | 2 | | | | | | (15) | | | | | | 22 | | |
Adjustments for: | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial investments
|
| | | | | | | | | | (2,435) | | | | | | (3,029) | | | | | | (6,644) | | |
Insurance and investment contract liabilities, and deferred acquisition and origination costs
|
| | | | | | | | | | 2,015 | | | | | | 1,891 | | | | | | 4,487 | | |
Other non-cash operating items, including investment income and the effect of exchange rate changes on certain operating items
|
| | | | | | | | | | 227 | | | | | | 662 | | | | | | 1,129 | | |
Operating cash items:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Dividend received
|
| | | | | | | | | | 80 | | | | | | 91 | | | | | | 140 | | |
Interest received
|
| | | | | | | | | | 506 | | | | | | 741 | | | | | | 1,112 | | |
Interest paid
|
| | | | | | | | | | — | | | | | | — | | | | | | (2) | | |
Income tax paid
|
| | | | | | | | | | (3) | | | | | | (37) | | | | | | (27) | | |
Net cash provided by/(used in) operating activities
|
| | | | | | | | | | 161 | | | | | | (32) | | | | | | (2) | | |
CASH FLOWS FROM INVESTING ACTIVITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition of subsidiaries and distribution agreements, net of cash acquired
|
| | | | 5 | | | | | | — | | | | | | (2,991) | | | | | | (910) | | |
Acquisition of interest in an associate
|
| | | | 12 | | | | | | — | | | | | | — | | | | | | (16) | | |
Dividend from a joint venture
|
| | | | | | | | | | 9 | | | | | | 9 | | | | | | 10 | | |
Payments for intangible assets
|
| | | | | | | | | | (67) | | | | | | (54) | | | | | | (54) | | |
Payments for investment properties
|
| | | | | | | | | | (305) | | | | | | (225) | | | | | | (44) | | |
Payments for property, plant and equipment
|
| | | | | | | | | | (31) | | | | | | (32) | | | | | | (16) | | |
Proceeds from disposal of a subsidiary, net of
cash disposed |
| | | | | | | | | | — | | | | | | — | | | | | | 59 | | |
Proceeds from disposals of intangible assets
|
| | | | | | | | | | 1 | | | | | | — | | | | | | 382 | | |
Restricted cash for acquisitions
|
| | | | | | | | | | — | | | | | | (58) | | | | | | 56 | | |
Net cash used in investing activities
|
| | | | | | | | | | (393) | | | | | | (3,351) | | | | | | (533) | | |
US$m
|
| |
Notes
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of convertible preference shares
|
| | | | | | | | | | 299 | | | | | | 80 | | | | | | — | | |
Redemption of medium term note
|
| | | | | | | | | | (100) | | | | | | — | | | | | | — | | |
Repayment of bank borrowings
|
| | | | | | | | | | (250) | | | | | | — | | | | | | — | | |
Proceeds from bank borrowings
|
| | | | | | | | | | 270 | | | | | | 1,950 | | | | | | 793 | | |
Restricted cash for bank borrowings
|
| | | | | | | | | | (40) | | | | | | (79) | | | | | | 71 | | |
Proceeds from guaranteed notes
|
| | | | | | | | | | — | | | | | | 498 | | | | | | — | | |
Proceeds from subordinated notes
|
| | | | | | | | | | — | | | | | | 900 | | | | | | — | | |
Proceeds from mandatory convertible securities
|
| | | | 28.5 | | | | | | — | | | | | | — | | | | | | 210 | | |
Proceeds from a short-term loan
|
| | | | | | | | | | — | | | | | | — | | | | | | 440 | | |
Repayment of a short-term loan
|
| | | | | | | | | | — | | | | | | — | | | | | | (440) | | |
Issuance of perpetual securities
|
| | | | | | | | | | 198 | | | | | | 600 | | | | | | — | | |
Distributions paid on perpetual securities
|
| | | | | | | | | | (22) | | | | | | (27) | | | | | | (65) | | |
Acquisition of non-controlling interests
|
| | | | 28.5 | | | | | | — | | | | | | (3) | | | | | | (123) | | |
Transaction with non-controlling interests
|
| | | | 28.5 | | | | | | — | | | | | | — | | | | | | 680 | | |
Principal portion of lease payments
|
| | | | | | | | | | — | | | | | | (40) | | | | | | (46) | | |
Finance costs paid on lease liabilities
|
| | | | | | | | | | — | | | | | | (6) | | | | | | (6) | | |
Finance costs paid on borrowings
|
| | | | | | | | | | (30) | | | | | | (99) | | | | | | (160) | | |
Payment for listing related expenses
|
| | | | | | | | | | — | | | | | | — | | | | | | (1) | | |
Net cash provided by financing activities
|
| | | | | | | | | | 325 | | | | | | 3,774 | | | | | | 1,353 | | |
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | | | | | | | 93 | | | | | | 391 | | | | | | 818 | | |
Cash and cash equivalents at beginning of the
year |
| | | | | | | | | | 1,395 | | | | | | 1,493 | | | | | | 1,911 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | | | | | | | 5 | | | | | | 27 | | | | | | 11 | | |
CASH AND CASH EQUIVALENTS AT END OF YEAR
|
| | | | | | | | | | 1,493 | | | | | | 1,911 | | | | | | 2,740 | | |
Included in cash and cash equivalents per the consolidated statements of financial position
|
| | | | 21 | | | | | | 1,493 | | | | | | 1,911 | | | | | | 2,730 | | |
Included in the assets classified as held-for-sale
|
| | | | | | | | | | — | | | | | | — | | | | | | 10 | | |
US$m
|
| | | | | | |
Operating lease commitments disclosed as at December 31, 2018
|
| | | | 130 | | |
Discounted using the leasee’s incremental borrowing rate at the date of initial application
|
| | | | 122 | | |
(Less): lease-type obligation
|
| | | | (5) | | |
(Less): contracts reassessed as service agreements
|
| | | | (4) | | |
(Less): leases not yet commenced but committed
|
| | | | (4) | | |
(Less): short-term leases recognized on a straight-line basis as expense
|
| | | | — | | |
(Less): others
|
| | | | (1) | | |
Add: adjustments as a result of a different treatment of extension and termination options
|
| | | | 3 | | |
Add: contracts reassessed as lease agreements
|
| | | | 1 | | |
Lease liability recognized as at January 1, 2019
|
| | | | 112 | | |
| | |
Fair value as at December 31, 2018
|
| |
Change in fair value for the year ended
December 31, 2018 |
| ||||||||||||||||||||||||||||||
US$m
|
| |
Financial assets
that meet SPPI criteria and are not held for trading or managed on a fair value basis |
| |
Others
|
| |
Total
|
| |
Financial assets
that meet SPPI criteria and are not held for trading or managed on a fair value basis |
| |
Others
|
| |
Total
|
| ||||||||||||||||||
Debt securities
|
| | | | 16,049 | | | | | | 720 | | | | | | 16,769 | | | | | | (384) | | | | | | (29) | | | | | | (413) | | |
Other financial assets (Note 1 and 2)
|
| | | | 783 | | | | | | 2,664 | | | | | | 3,447 | | | | | | — | | | | | | (132) | | | | | | (132) | | |
Total
|
| | | | 16,832 | | | | | | 3,384 | | | | | | 20,216 | | | | | | (384) | | | | | | (161) | | | | | | (545) | | |
| | |
Fair value as at December 31, 2019
|
| |
Change in fair value for the year ended
December 31, 2019 |
| ||||||||||||||||||||||||||||||
US$m
|
| |
Financial assets
that meet SPPI criteria and are not held for trading or managed on a fair value basis |
| |
Others
|
| |
Total
|
| |
Financial assets
that meet SPPI criteria and are not held for trading or managed on a fair value basis |
| |
Others
|
| |
Total
|
| ||||||||||||||||||
Debt securities
|
| | | | 29,997 | | | | | | 949 | | | | | | 30,946 | | | | | | 1,022 | | | | | | 33 | | | | | | 1,055 | | |
Other financial assets (Note 1 and 2)
|
| | | | 1,738 | | | | | | 4,304 | | | | | | 6,042 | | | | | | 26 | | | | | | 207 | | | | | | 233 | | |
Total
|
| | | | 31,735 | | | | | | 5,253 | | | | | | 36,988 | | | | | | 1,048 | | | | | | 240 | | | | | | 1,288 | | |
| | |
Fair value as at December 31, 2020
|
| |
Change in fair value for the year ended
December 31, 2020 |
| ||||||||||||||||||||||||||||||
US$m
|
| |
Financial assets
that meet SPPI criteria and are not held for trading or managed on a fair value basis |
| |
Others
|
| |
Total
|
| |
Financial assets
that meet SPPI criteria and are not held for trading or managed on a fair value basis |
| |
Others
|
| |
Total
|
| ||||||||||||||||||
Debt securities
|
| | | | 36,524 | | | | | | 1,444 | | | | | | 37,968 | | | | | | 1,128 | | | | | | 53 | | | | | | 1,181 | | |
Other financial assets (Note 1 and 2)
|
| | | | 1,792 | | | | | | 5,920 | | | | | | 7,712 | | | | | | 21 | | | | | | 274 | | | | | | 295 | | |
Total
|
| | | | 38,316 | | | | | | 7,364 | | | | | | 45,680 | | | | | | 1,149 | | | | | | 327 | | | | | | 1,476 | | |
Country
|
| |
Current policyholder
participation |
|
Malaysia
|
| |
90%
|
|
Vietnam
|
| |
70%/75%
|
|
| | | | | |
Basis of accounting for:
|
| |||
Policy type
|
| |
Description of benefits payable
|
| |
Insurance contract liabilities
|
| |
Investment contract liabilities
|
|
Traditional participating life assurance with DPF | | |
Participating funds
Participating products include protection and savings element. The basic sum assured, payable on death or maturity, may be enhanced by dividends or bonuses, the aggregate amount of which is determined by the performance of a distinct fund of assets and liabilities. The timing and bonus declarations is at the discretion of the insurer. Local regulators generally prescribed a minimum proportion of policyholder participation in declared dividend.
|
| | Insurance contracts liabilities make provision for the present value of guaranteed benefits and non-guaranteed participation less estimated future net premiums to be collected from policyholders. For participating products with definite sharing mechanism, insurance contract liabilities make provision for the present value of guaranteed benefits less estimated future net premiums to be collected from policyholders. Undistributed participating policy earnings account (“UPPEA”) is set up retrospectively for undistributed dividends or bonuses. In addition, deferred profit liabilities for limited payment contracts are recognized. | | | Not applicable, as IFRS 4 permits contracts with DPF to be accounted for as insurance contracts | |
| | |
Other participating business
Participating products include protection and savings elements.
|
| | Insurance contract liabilities make provision for the present value of guaranteed | | | Not applicable, as IFRS 4 permits contracts with DPF to be accounted for as | |
| | | | | |
Basis of accounting for:
|
| |||
Policy type
|
| |
Description of benefits payable
|
| |
Insurance contract liabilities
|
| |
Investment contract liabilities
|
|
| | | The basic sum assured, payable on death or maturity, may be enhanced by dividends or bonuses, the timing or amount of which are at the discretion of the insurer taking into account factors such as investment experience. | | | benefits and non-guaranteed participation less estimated future net premiums to be collected from policyholders | | | insurance contracts | |
Takaful | | | Products combine savings with protection, with an arrangement based on mutual assistance under which takaful participants agree to contribute to a common fund (Family risk fund) providing for mutual financial benefits payable on the occurrence of pre-agreed events. | | | Insurance contract liabilities reflect the present value of future policy benefits to be paid, the future administration expenses that are directly related to the contract and the mutual financial benefits to be paid from the common fund, less the present value of estimated future gross premiums to be collected from policyholders. | | | Not applicable | |
Non-participating life assurance, annuities and other protection products | | | Benefits payable are not at the discretion of the insurer | | | Insurance contract liabilities reflect the present value of future policy benefits to be paid and the future administration expenses that are directly related to the contract, less the present value of estimated future net premiums to be collected from policyholders. In addition, deferred profit liabilities for limited payment contracts are recognized | | | Investment contract liabilities without DPF are measured at amortized cost | |
Universal life | | | Benefits are based on an account balance, credited with interest at a rate set by the insurer, and a death benefit, which may be varied by the customer. | | | Insurance contract liabilities reflect the accumulation value, representing premiums received and investment returns credited, less deductions for front-end loads, mortality and morbidity costs and expense charges. | | | Not applicable as such contracts generally contain significant insurance risk | |
| | | | | |
Basis of accounting for:
|
| |||
Policy type
|
| |
Description of benefits payable
|
| |
Insurance contract liabilities
|
| |
Investment contract liabilities
|
|
| | | | | | In addition, liabilities for unearned revenue and additional insurance benefits are recorded | | | | |
Unit-linked | | | These may be primarily savings products or may combine savings with an element of protection | | | Insurance contract liabilities reflect the accumulation value, representing premiums received and investment returns credited, less deductions for front-end loads, mortality and morbidity costs and expense charges. In addition, liabilities for unearned revenue and additional insurance benefits are recorded | | | Investment contract liabilities are measured at fair value (determined with reference to the accumulation value) | |
| | |
US dollar exchange rate
|
| |||||||||||||||
| | |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Hong Kong
|
| | | | 7.84 | | | | | | 7.84 | | | | | | 7.76 | | |
Japan
|
| | | | 110.43 | | | | | | 109.01 | | | | | | 106.75 | | |
Thailand
|
| | | | 32.32 | | | | | | 31.05 | | | | | | 31.30 | | |
| | |
US dollar exchange rate
|
| |||||||||||||||
| | |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Hong Kong
|
| | | | 7.83 | | | | | | 7.79 | | | | | | 7.75 | | |
Japan
|
| | | | 109.91 | | | | | | 108.55 | | | | | | 103.11 | | |
Thailand
|
| | | | 32.36 | | | | | | 29.74 | | | | | | 29.95 | | |
US$m
|
| |
Notes
|
| |
Fair values
as at the date of acquisition |
| |||
Financial investments
|
| |
17,19
|
| | | | | | |
Available for sale debt securities
|
| | | | | | | 150 | | |
At fair value through profit or loss
|
| | | | | | | 153 | | |
Reinsurance assets
|
| |
15
|
| | | | 11 | | |
Other assets
|
| |
20
|
| | | | 12 | | |
Value of business acquired (“VOBA”)
|
| |
16
|
| | | | 10 | | |
Cash and cash equivalents
|
| |
21
|
| | | | 15 | | |
Insurance contract liabilities
|
| |
22
|
| | | | (299) | | |
Other liabilities
|
| |
27
|
| | | | (12) | | |
Deferred tax liabilities
|
| |
9
|
| | | | (3) | | |
Net identifiable assets acquired
|
| | | | | | | 37 | | |
Non-controlling interest measured with proportionate share approach
|
| | | | | | | (17) | | |
Total considerations
|
| | | | | | | 20 | | |
Less: | | | | | | | | | | |
Cash and cash equivalents held in acquired subsidiaries
|
| | | | | | | (15) | | |
Net change in cash and cash equivalents
|
| | | | | | | 5 | | |
US$m
|
| |
Notes
|
| |
Fair values
as at the date of acquisition |
| |||
Intangible assets
|
| |
11
|
| | | | 19 | | |
SCB Distribution Agreement
|
| |
11
|
| | | | 1,239 | | |
Property, plant and equipment
|
| |
13
|
| | | | 22 | | |
Reinsurance assets
|
| |
15
|
| | | | 7 | | |
Value of business acquired (“VOBA”)
|
| |
16
|
| | | | 151 | | |
Financial investments
|
| |
17,18,19
|
| | | | | | |
Loans and deposits
|
| | | | | | | 681 | | |
Available-for-sale debt securities
|
| | | | | | | 10,895 | | |
Equity securities at fair value through profit or loss
|
| | | | | | | 417 | | |
Derivative financial instruments
|
| | | | | | | 169 | | |
Investment and other receivables
|
| |
20
|
| | | | 39 | | |
Other assets
|
| |
20
|
| | | | 148 | | |
Cash and cash equivalents
|
| |
21
|
| | | | 86 | | |
Insurance contract liabilities
|
| |
22
|
| | | | (10,270) | | |
Deferred tax liabilities
|
| |
9
|
| | | | (145) | | |
Other liabilities
|
| |
27
|
| | | | (276) | | |
Distribution agreement payable
|
| |
27
|
| | | | (576) | | |
Provisions
|
| | | | | | | (10) | | |
Net identifiable assets acquired
|
| | | | | | | 2,596 | | |
Non-controlling interest measured with proportionate share approach(1)
|
| | | | | | | (21) | | |
Goodwill arising on acquisition
|
| |
11
|
| | | | 497 | | |
Total considerations
|
| | | | | | | 3,072 | | |
Less: | | | | | | | | | | |
Cash and cash equivalents held in acquired subsidiaries
|
| | | | | | | (86) | | |
Net change in cash and cash equivalents
|
| | | | | | | 2,986 | | |
US$m
|
| |
Notes
|
| |
Fair values
as at the date of acquisition |
| |||
Value of business acquired
|
| |
16
|
| | | | 3 | | |
Financial investments – Loans and deposits
|
| |
17
|
| | | | 64 | | |
Other assets
|
| |
20
|
| | | | 8 | | |
Cash and cash equivalents
|
| |
21
|
| | | | 1 | | |
Insurance contract liabilities
|
| |
22
|
| | | | (40) | | |
Deferred tax liabilities
|
| |
9
|
| | | | (1) | | |
Other liabilities
|
| |
27
|
| | | | (4) | | |
Net identifiable assets acquired
|
| | | | | | | 31 | | |
Goodwill arising on acquisition
|
| |
11
|
| | | | 9 | | |
Fair value of consideration for acquisition
|
| | | | | | | 40 | | |
Vietcombank Distribution Agreement
|
| |
11
|
| | | | 434 | | |
Distribution agreement payable
|
| | | | | | | (60) | | |
Total considerations
|
| | | | | | | 414 | | |
Less: | | | | | | | | | | |
Cash and cash equivalents held in acquired subsidiaries
|
| | | | | | | (1) | | |
Net change in cash and cash equivalents
|
| | | | | | | 413 | | |
US$m
|
| |
Notes
|
| |
Fair values
as at the date of acquisition |
| |||
PTCL Distribution Agreement
|
| |
11
|
| | | | 70 | | |
Property, plant and equipment
|
| |
13
|
| | | | 2 | | |
Reinsurance assets
|
| |
15
|
| | | | 2 | | |
Value of business acquired (“VOBA”)
|
| |
16
|
| | | | 70 | | |
Financial investments
|
| |
17,18,19
|
| | | | | | |
Loans and deposits
|
| | | | | | | 33 | | |
Available-for-sale debt securities
|
| | | | | | | 157 | | |
At fair value through profit or loss
|
| | | | | | | 221 | | |
Other assets
|
| |
20
|
| | | | 18 | | |
Cash and cash equivalents
|
| |
21
|
| | | | 77 | | |
Insurance contract liabilities
|
| |
22
|
| | | | (336) | | |
Deferred tax liabilities
|
| |
9
|
| | | | (12) | | |
Other liabilities
|
| |
27
|
| | | | (23) | | |
Provisions
|
| | | | | | | (4) | | |
Net identifiable assets acquired
|
| | | | | | | 275 | | |
Goodwill arising on acquisition
|
| |
11
|
| | | | 149 | | |
Total considerations
|
| | | | | | | 424 | | |
Less: | | | | | | | | | | |
Cash and cash equivalents held in acquired subsidiaries
|
| | | | | | | (77) | | |
Net change in cash and cash equivalents
|
| | | | | | | 347 | | |
US$m
|
| |
Notes
|
| |
Fair values as at the
date of acquisition |
| |||
Intangible assets
|
| |
11
|
| | | | 4 | | |
Property, plant and equipment
|
| |
13
|
| | | | 10 | | |
Reinsurance assets
|
| |
15
|
| | | | 8 | | |
Value of business acquired (“VOBA”)
|
| |
16
|
| | | | 56 | | |
Financial investments
|
| |
17,18,19
|
| | | | | | |
Loans and deposits
|
| | | | | | | 9 | | |
Available-for-sale debt securities
|
| | | | | | | 2,292 | | |
At fair value through profit or loss
|
| | | | | | | 111 | | |
Other assets
|
| |
20
|
| | | | 62 | | |
Cash and cash equivalents
|
| |
21
|
| | | | 196 | | |
Insurance contract liabilities
|
| |
22
|
| | | | (2,245) | | |
Deferred tax liabilities
|
| |
9
|
| | | | (6) | | |
Other liabilities
|
| |
27
|
| | | | (158) | | |
Provisions
|
| | | | | | | (8) | | |
Net identifiable assets acquired
|
| | | | | | | 331 | | |
Goodwill arising on acquisition
|
| |
11
|
| | | | 13 | | |
Total considerations
|
| | | | | | | 344 | | |
Less: | | | | | | | | | | |
Cash and cash equivalents held in acquired subsidiaries
|
| | | | | | | (196) | | |
Net change in cash and cash equivalents
|
| | | | | | | 148 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Profit for the year – fees and commission income
|
| | | | 2 | | | | | | 2 | | | | | | 2 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Total Assets(1)
|
| | | | 346 | | | | | | 359 | | | | | | 375 | | |
Total Liabilities(2)
|
| | | | 346 | | | | | | 359 | | | | | | 375 | | |
Net Assets
|
| | | | — | | | | | | — | | | | | | — | | |
US$’m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Disposed GI
subsidiary For the period from January 1, to December 8, 2020 |
| |
Remaining GI
Disposal Group Year ended December 31, 2020 |
| ||||||||||||
Net premiums and fee income
|
| | | | 31 | | | | | | 33 | | | | | | 28 | | | | | | — | | |
Investment return
|
| | | | 2 | | | | | | 3 | | | | | | 1 | | | | | | — | | |
Other operating revenue
|
| | | | 9 | | | | | | 12 | | | | | | — | | | | | | 2 | | |
Total revenue
|
| | | | 42 | | | | | | 48 | | | | | | 29 | | | | | | 2 | | |
Net insurance and investment contract benefits
|
| | | | (18) | | | | | | (18) | | | | | | (12) | | | | | | — | | |
Commission and commission related expenses
|
| | | | (13) | | | | | | (15) | | | | | | — | | | | | | (1) | | |
Other operating expenses
|
| | | | (11) | | | | | | (32) | | | | | | (8) | | | | | | (7) | | |
Total expenses
|
| | | | (42) | | | | | | (65) | | | | | | (20) | | | | | | (8) | | |
Profit/(loss) before tax
|
| | | | — | | | | | | (17) | | | | | | 9 | | | | | | (6) | | |
Tax expense
|
| | | | — | | | | | | (1) | | | | | | (2) | | | | | | — | | |
Profit/(Loss) for the period
|
| | | | — | | | | | | (18) | | | | | | 7 | | | | | | (6) | | |
Net cash inflow/(outflow) from operating activities
|
| | | | 7 | | | | | | 3 | | | | | | 6 | | | | | | (7) | | |
Net cash inflow/(outflow) from investing
activities |
| | | | (1) | | | | | | (12) | | | | | | 5 | | | | | | (4) | | |
Net cash inflow/(outflow) from financing activities
|
| | | | (5) | | | | | | 12 | | | | | | — | | | | | | 14 | | |
Net increase in cash generated by the
subsidiaries |
| | | | 1 | | | | | | 3 | | | | | | 11 | | | | | | 3 | | |
US$’m
|
| |
Disposed
GI subsidiary As at December 8, 2020 |
| |
Remaining GI
Disposal Group Year ended December 31, 2020 |
| ||||||
Assets | | | | | | | | | | | | | |
Reinsurance assets
|
| | | | 24 | | | | | | — | | |
Deferred acquisition costs
|
| | | | 9 | | | | | | — | | |
Available for sale financial assets
|
| | | | 112 | | | | | | — | | |
Other assets
|
| | | | 16 | | | | | | 15 | | |
Cash and cash equivalents
|
| | | | 18 | | | | | | 10 | | |
Total Assets
|
| | | | 179 | | | | | | 25 | | |
Liabilities | | | | | | | | | | | | | |
Insurance contract liabilities
|
| | | | (81) | | | | | | — | | |
Deferred ceding commission
|
| | | | (3) | | | | | | — | | |
Current tax liabilities
|
| | | | (3) | | | | | | — | | |
US$’m
|
| |
Disposed
GI subsidiary As at December 8, 2020 |
| |
Remaining GI
Disposal Group Year ended December 31, 2020 |
| ||||||
Other liabilities
|
| | | | (26) | | | | | | (3) | | |
Total Liabilities
|
| | | | (113) | | | | | | (3) | | |
Net assets
|
| | | | 66 | | | | | | 22 | | |
Amounts included in accumulated other comprehensive income: | | | | | | | | | | | | | |
Fair value reserve
|
| | | | (6) | | | | | | — | | |
Foreign currency translation reserve
|
| | | | — | | | | | | 1 | | |
US$’m
|
| |
Disposed
GI subsidiary As at December 8, 2020 |
| |||
Cash consideration
|
| | | | 77 | | |
Cash and cash equivalents disposed of
|
| | | | (18) | | |
Net cash inflows in respect of the disposed GI Subsidiary
|
| | | | 59 | | |
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Year ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TWPI(2) | | | | | 1,183 | | | | | | 795 | | | | | | 1,655 | | | | | | 177 | | | | | | — | | | | | | 3,810 | | |
Premiums and fee income
|
| | | | 1,837 | | | | | | 878 | | | | | | 2,028 | | | | | | 245 | | | | | | (1) | | | | | | 4,987 | | |
Premiums ceded to reinsurers
|
| | | | (433) | | | | | | (7) | | | | | | (429) | | | | | | (13) | | | | | | — | | | | | | (882) | | |
Other operating revenue
|
| | | | 71 | | | | | | 1 | | | | | | 37 | | | | | | 2 | | | | | | (12) | | | | | | 99 | | |
Net premiums, fee income and other operating revenue
(net of reinsurance ceded) |
| | | | 1,475 | | | | | | 872 | | | | | | 1,636 | | | | | | 234 | | | | | | (13) | | | | | | 4,204 | | |
Investment return
|
| | | | 330 | | | | | | 126 | | | | | | 67 | | | | | | (9) | | | | | | 5 | | | | | | 519 | | |
Total revenue(1)
|
| | | | 1,805 | | | | | | 998 | | | | | | 1,703 | | | | | | 225 | | | | | | (8) | | | | | | 4,723 | | |
Net insurance and investment contract benefits
|
| | | | 1,407 | | | | | | 781 | | | | | | 1,342 | | | | | | 189 | | | | | | — | | | | | | 3,719 | | |
Commission and commission related expenses
|
| | | | 139 | | | | | | 88 | | | | | | 65 | | | | | | 5 | | | | | | — | | | | | | 297 | | |
Operating expenses
|
| | | | 123 | | | | | | 76 | | | | | | 226 | | | | | | 112 | | | | | | 102 | | | | | | 639 | | |
Finance costs and other expenses
|
| | | | 23 | | | | | | 5 | | | | | | 14 | | | | | | — | | | | | | — | | | | | | 42 | | |
Total expenses(1)
|
| | | | 1,692 | | | | | | 950 | | | | | | 1,647 | | | | | | 306 | | | | | | 102 | | | | | | 4,697 | | |
Share of profit/(loss) from associates and a joint venture
|
| | | | 17 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 18 | | |
Adjusted operating profit/(loss) before tax from continuing operations
|
| | | | 130 | | | | | | 48 | | | | | | 56 | | | | | | (81) | | | | | | (109) | | | | | | 44 | | |
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Adjusted operating profit/(loss) before tax attributable to:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders of FL and FGL
|
| | | | 130 | | | | | | 48 | | | | | | 56 | | | | | | (81) | | | | | | (109) | | | | | | 44 | | |
Non-controlling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Key operating ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expense ratio(2)
|
| | | | 10.4% | | | | | | 9.5% | | | | | | 13.7% | | | | | | 63.3% | | | | | | —% | | | | | | 16.8% | | |
Adjusted operating profit/(loss) before tax includes: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance costs
|
| | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 2 | | |
Depreciation and amortization
|
| | | | 6 | | | | | | 12 | | | | | | 12 | | | | | | 12 | | | | | | 3 | | | | | | 45 | | |
|
US$m
|
| |
Hong Kong(1)
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Adjusted
Financial Position |
| ||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | | 15,084 | | | | | | 4,896 | | | | | | 8,832 | | | | | | 784 | | | | | | 483 | | | | | | 30,079 | | |
Total liabilities
|
| | | | 12,697 | | | | | | 3,762 | | | | | | 8,385 | | | | | | 607 | | | | | | 606 | | | | | | 26,057 | | |
Total equity
|
| | | | 2,387 | | | | | | 1,134 | | | | | | 447 | | | | | | 177 | | | | | | (123) | | | | | | 4,022 | | |
Shareholders’ allocated equity
|
| | | | 2,525 | | | | | | 1,012 | | | | | | 449 | | | | | | 174 | | | | | | (1,120) | | | | | | 3,040 | | |
Net capital (out)/in flows
|
| | | | (27) | | | | | | — | | | | | | 43 | | | | | | 143 | | | | | | 317 | | | | | | 476 | | |
Total assets include: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment in associates and a joint venture
|
| | | | 245 | | | | | | — | | | | | | — | | | | | | — | | | | | | 55 | | | | | | 300 | | |
US$m
|
| |
Segment
information |
| |
Short-term
fluctuations in investment return related to equities and property investments and other non-operating investment return |
| |
Other
non- operating items |
| |
Operating
Group Total |
| | | | | | | ||||||||||||
Year ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Net premiums, fee income and other operating revenue
|
| | | | 4,204 | | | | | | — | | | | | | 55 | | | | | | 4,259 | | | |
|
| | Net premiums, fee income and other operating revenue | |
Investment return
|
| | | | 519 | | | | | | (90) | | | | | | — | | | | | | 429 | | | |
|
| | Investment return | |
US$m
|
| |
Segment
information |
| |
Short-term
fluctuations in investment return related to equities and property investments and other non-operating investment return |
| |
Other
non- operating items |
| |
Operating
Group Total |
| | | | | | | ||||||||||||
Total revenue
|
| | | | 4,723 | | | | | | (90) | | | | | | 55 | | | | | | 4,688 | | | |
|
| | Total revenue | |
Net insurance and investment contract
benefits |
| | | | 3,719 | | | | | | (6) | | | | | | 50 | | | | | | 3,763 | | | |
|
| | Net insurance and investment contract benefits | |
Finance costs and other expenses
|
| | | | 978 | | | | | | — | | | | | | 196 | | | | | | 1,174 | | | |
|
| |
Finance costs and other expenses
|
|
Total expenses
|
| | | | 4,697 | | | | | | (6) | | | | | | 246 | | | | | | 4,937 | | | |
|
| | Total expenses | |
Share of profit from associates and a joint venture
|
| | | | 18 | | | | | | — | | | | | | — | | | | | | 18 | | | |
|
| | Share of profit from associates and a joint venture | |
Adjusted operating profit before tax
|
| | | | 44 | | | | | | (84) | | | | | | (191) | | | | | | (231) | | | |
|
| | Adjusted Loss before tax from continuing operations of the Operating Group | |
| | | | | | | | | | | | | | | | | | | | | | | 33 | | | |
|
| |
Tax benefit from continuing operations
|
|
| | | | | | | | | | | | | | | | | | | | | | | (198) | | | |
|
| |
Adjusted net loss from continuing
operations of the Operating Group after tax |
|
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Year ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TWPI(2)
|
| | | | 1,443 | | | | | | 1,140 | | | | | | 1,801 | | | | | | 271 | | | | | | — | | | | | | 4,655 | | |
Premiums and fee income
|
| | | | 1,911 | | | | | | 1,355 | | | | | | 2,350 | | | | | | 363 | | | | | | (2) | | | | | | 5,977 | | |
Premiums ceded to reinsurers
|
| | | | (243) | | | | | | (14) | | | | | | (611) | | | | | | (26) | | | | | | — | | | | | | (894) | | |
Other operating revenue
|
| | | | 70 | | | | | | 5 | | | | | | 67 | | | | | | 4 | | | | | | (5) | | | | | | 141 | | |
Net premiums, fee income and other operating revenue (net of reinsurance ceded)
|
| | | | 1,738 | | | | | | 1,346 | | | | | | 1,806 | | | | | | 341 | | | | | | (7) | | | | | | 5,224 | | |
Investment return
|
| | | | 533 | | | | | | 244 | | | | | | 104 | | | | | | 28 | | | | | | 10 | | | | | | 919 | | |
Total revenue(1)
|
| | | | 2,271 | | | | | | 1,590 | | | | | | 1,910 | | | | | | 369 | | | | | | 3 | | | | | | 6,143 | | |
Net insurance and investment contract
benefits |
| | | | 1,748 | | | | | | 1,288 | | | | | | 1,452 | | | | | | 309 | | | | | | — | | | | | | 4,797 | | |
Commission and commission related
expenses |
| | | | 193 | | | | | | 122 | | | | | | 102 | | | | | | (3) | | | | | | — | | | | | | 414 | | |
Operating expenses
|
| | | | 193 | | | | | | 128 | | | | | | 262 | | | | | | 158 | | | | | | 95 | | | | | | 836 | | |
Finance costs and other expenses
|
| | | | 18 | | | | | | 11 | | | | | | 23 | | | | | | 3 | | | | | | 1 | | | | | | 56 | | |
Total expenses(1)
|
| | | | 2,152 | | | | | | 1,549 | | | | | | 1,839 | | | | | | 467 | | | | | | 96 | | | | | | 6,103 | | |
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Share of profit/(loss) from associates and a joint venture
|
| | | | 9 | | | | | | — | | | | | | — | | | | | | — | | | | | | (2) | | | | | | 7 | | |
Adjusted operating profit/(loss) before tax from
continuing operations |
| | | | 128 | | | | | | 41 | | | | | | 71 | | | | | | (98) | | | | | | (95) | | | | | | 47 | | |
Adjusted operating profit/(loss) before tax attributable to:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | 128 | | | | | | 41 | | | | | | 71 | | | | | | (96) | | | | | | (95) | | | | | | 49 | | |
Non-controlling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | | | | | (2) | | |
Key operating ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expense ratio(2)
|
| | | | 13.4% | | | | | | 11.2% | | | | | | 14.5% | | | | | | 53.4% | | | | | | —% | | | | | | 17.8% | | |
Adjusted operating profit/(loss) before tax includes:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance costs
|
| | | | 2 | | | | | | — | | | | | | 3 | | | | | | 2 | | | | | | 1 | | | | | | 8 | | |
Depreciation and amortization
|
| | | | 26 | | | | | | 15 | | | | | | 30 | | | | | | 19 | | | | | | 14 | | | | | | 104 | | |
|
US$m
|
| |
Hong Kong(2)
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Adjusted
Financial Position |
| ||||||||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | | 17,027 | | | | | | 21,137 | | | | | | 10,618 | | | | | | 1,912 | | | | | | 263 | | | | | | 50,957 | | |
Total liabilities
|
| | | | 13,824 | | | | | | 16,476 | | | | | | 10,119 | | | | | | 1,250 | | | | | | 3,696 | | | | | | 45,365 | | |
Total equity
|
| | | | 3,203 | | | | | | 4,661 | | | | | | 499 | | | | | | 662 | | | | | | (3,433) | | | | | | 5,592 | | |
Shareholders’ allocated equity
|
| | | | 2,862 | | | | | | 4,274 | | | | | | 371 | | | | | | 654 | | | | | | (5,079) | | | | | | 3,082 | | |
Net capital in/(out) flows(1)
|
| | | | 241 | | | | | | 3,071 | | | | | | (125) | | | | | | 578 | | | | | | (3,052) | | | | | | 713 | | |
Total assets include: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment in associates and a joint venture
|
| | | | 248 | | | | | | — | | | | | | — | | | | | | — | | | | | | 48 | | | | | | 296 | | |
US$m
|
| |
Segment
information |
| |
Short-term
fluctuations in investment return related to equities and property investments and other non-operating investment return |
| |
Other
non- operating items |
| |
Operating
Group Total |
| | | | | | | ||||||||||||
Year ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Net premiums, fee income and other operating revenue
|
| | | | 5,224 | | | | | | — | | | | | | 54 | | | | | | 5,278 | | | |
|
| | Net premiums, fee income and other operating revenue | |
Investment return
|
| | | | 919 | | | | | | 35 | | | | | | 1 | | | | | | 955 | | | |
|
| | Investment return | |
Total revenue
|
| | | | 6,143 | | | | | | 35 | | | | | | 55 | | | | | | 6,233 | | | |
|
| | Total revenue | |
Net insurance and investment contract
benefits |
| | | | 4,797 | | | | | | 50 | | | | | | 38 | | | | | | 4,885 | | | |
|
| | Net insurance and investment contract benefits | |
Finance costs and other expenses
|
| | | | 1,306 | | | | | | — | | | | | | 383 | | | | | | 1,689 | | | |
|
| |
Finance costs and other expenses
|
|
Total expenses
|
| | | | 6,103 | | | | | | 50 | | | | | | 421 | | | | | | 6,574 | | | |
|
| | Total expenses | |
Share of profit from associates and a joint venture
|
| | | | 7 | | | | | | — | | | | | | — | | | | | | 7 | | | |
|
| |
Share of profit from associates and a joint venture
|
|
Adjusted operating profit before tax
|
| | | | 47 | | | | | | (15) | | | | | | (366) | | | | | | (334) | | | |
|
| |
Adjusted Loss before tax from continuing operations of the Operating Group
|
|
| | | | | | | | | | | | | | | | | | | | | | | 20 | | | |
|
| |
Tax benefit from continuing operations
|
|
| | | | | | | | | | | | | | | | | | | | | | | (314) | | | |
|
| |
Adjusted net loss from continuing
operations of the Operating Group after tax |
|
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Year ended December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TWPI(2)
|
| | | | 1,730 | | | | | | 2,255 | | | | | | 2,131 | | | | | | 430 | | | | | | — | | | | | | 6,546 | | |
Premiums and fee income
|
| | | | 2,697 | | | | | | 2,575 | | | | | | 2,839 | | | | | | 641 | | | | | | (2) | | | | | | 8,750 | | |
Premiums ceded to reinsurers
|
| | | | (239) | | | | | | (28) | | | | | | (778) | | | | | | (31) | | | | | | — | | | | | | (1,076) | | |
Other operating revenue
|
| | | | 78 | | | | | | 9 | | | | | | 113 | | | | | | 13 | | | | | | (3) | | | | | | 210 | | |
Net premiums, fee income and other operating revenue (net of reinsurance ceded)
|
| | | | 2,536 | | | | | | 2,556 | | | | | | 2,174 | | | | | | 623 | | | | | | (5) | | | | | | 7,884 | | |
Investment return
|
| | | | 629 | | | | | | 425 | | | | | | 118 | | | | | | 111 | | | | | | (1) | | | | | | 1,282 | | |
Total revenue(1)
|
| | | | 3,165 | | | | | | 2,981 | | | | | | 2,292 | | | | | | 734 | | | | | | (6) | | | | | | 9,166 | | |
Net insurance and investment contract benefits
|
| | | | 2,494 | | | | | | 2,419 | | | | | | 1,677 | | | | | | 616 | | | | | | — | | | | | | 7,206 | | |
Commission and commission related expenses
|
| | | | 314 | | | | | | 228 | | | | | | 227 | | | | | | 14 | | | | | | — | | | | | | 783 | | |
Operating expenses
|
| | | | 196 | | | | | | 222 | | | | | | 265 | | | | | | 187 | | | | | | 108 | | | | | | 978 | | |
Finance costs and other expenses
|
| | | | 21 | | | | | | 26 | | | | | | 23 | | | | | | 4 | | | | | | — | | | | | | 74 | | |
Total expenses(1)
|
| | | | 3,025 | | | | | | 2,895 | | | | | | 2,192 | | | | | | 821 | | | | | | 108 | | | | | | 9,041 | | |
Share of profit/(loss) from associates and a joint venture
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | — | | |
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Adjusted operating profit/(loss) before tax from continuing operations
|
| | | | 141 | | | | | | 86 | | | | | | 100 | | | | | | (87) | | | | | | (115) | | | | | | 125 | | |
Adjusted operating profit/(loss) before tax attributable
to: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | 141 | | | | | | 86 | | | | | | 100 | | | | | | (81) | | | | | | (115) | | | | | | 131 | | |
Non-controlling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | (6) | | | | | | — | | | | | | (6) | | |
Key operating ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expense ratio(2)
|
| | | | 11.3% | | | | | | 9.8% | | | | | | 12.4% | | | | | | 40.6% | | | | | | — | | | | | | 14.7% | | |
Adjusted operating profit/(loss) before tax includes: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance costs
|
| | | | 2 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | — | | | | | | 11 | | |
Depreciation and amortization
|
| | | | 34 | | | | | | 34 | | | | | | 42 | | | | | | 25 | | | | | | 10 | | | | | | 145 | | |
|
US$m
|
| |
Hong Kong(2)
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Adjusted
Financial Position |
| ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | | 22,669 | | | | | | 22,475 | | | | | | 12,970 | | | | | | 3,409 | | | | | | 1,027 | | | | | | 62,550 | | |
Total liabilities
|
| | | | 18,500 | | | | | | 17,751 | | | | | | 12,321 | | | | | | 2,227 | | | | | | 3,526 | | | | | | 54,325 | | |
Total equity
|
| | | | 4,169 | | | | | | 4,724 | | | | | | 649 | | | | | | 1,182 | | | | | | (2,499) | | | | | | 8,225 | | |
Shareholders’ allocated equity
|
| | | | 3,408 | | | | | | 4,269 | | | | | | 500 | | | | | | 1,153 | | | | | | (4,099) | | | | | | 5,231 | | |
Net capital in/(out) flows(1)
|
| | | | 406 | | | | | | 27 | | | | | | 36 | | | | | | 640 | | | | | | 1,234 | | | | | | 2,343 | | |
Total assets include: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment in associates and a joint venture
|
| | | | 244 | | | | | | — | | | | | | — | | | | | | 18 | | | | | | 45 | | | | | | 307 | | |
US$m
|
| |
Segment
information |
| |
Short-term
fluctuations in investment return related to equities and property investments and other non-operating investment return |
| |
Other
non- operating items |
| |
Operating
Group Total |
| | | | | | | ||||||||||||
Year ended December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Net premiums, fee income and other operating revenue
|
| | | | 7,884 | | | | | | — | | | | | | 21 | | | | | | 7,905 | | | |
|
| | Net premiums, fee income and other operating revenue | |
Investment return
|
| | | | 1,282 | | | | | | 297 | | | | | | 1 | | | | | | 1,580 | | | |
|
| | Investment return | |
Total revenue
|
| | | | 9,166 | | | | | | 297 | | | | | | 22 | | | | | | 9,485 | | | |
|
| | Total revenue | |
Net insurance and investment contract
benefits |
| | | | 7,206 | | | | | | 168 | | | | | | (79) | | | | | | 7,295 | | | |
|
| | Net insurance and investment contract benefits | |
Finance costs and other expenses
|
| | | | 1,835 | | | | | | — | | | | | | 537 | | | | | | 2,372 | | | |
|
| |
Finance costs and other expenses
|
|
Total expenses
|
| | | | 9,041 | | | | | | 168 | | | | | | 458 | | | | | | 9,667 | | | |
|
| | Total expenses | |
Share of loss from associates and a joint venture
|
| | | | — | | | | | | — | | | | | | (1) | | | | | | (1) | | | |
|
| |
Share of loss from associates and
a joint venture |
|
Adjusted operating profit before tax
|
| | | | 125 | | | | | | 129 | | | | | | (437) | | | | | | (183) | | | |
|
| |
Adjusted loss before tax from continuing operations of the Operating Group
|
|
| | | | | | | | | | | | | | | | | | | | | | | (53) | | | |
|
| |
Tax expense from continuing operations
|
|
| | | | | | | | | | | | | | | | | | | | | | | (236) | | | |
|
| |
Adjusted net loss from continuing
operations of the Operating Group after tax |
|
US$m
|
| |
Notes
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| ||||||||||||
Adjusted net loss of the Operating Group from continuing operations after tax
|
| | | | 6.3 | | | | | | (198) | | | | | | (314) | | | | | | (236) | | |
Tax on adjusted operating profit before tax
|
| | | | | | | | | | 29 | | | | | | 34 | | | | | | 50 | | |
Tax impact from non-operating items
|
| | | | | | | | | | (62) | | | | | | (54) | | | | | | 3 | | |
Adjusted loss of the Operating Group before tax from continuing operations
|
| | | | | | | | | | (231) | | | | | | (334) | | | | | | (183) | | |
Non-operating items, net of related changes in insurance and investment contract liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Short-term fluctuations in investment return related to equities and property investments
|
| | | | | | | | | | 66 | | | | | | (40) | | | | | | 104 | | |
Other non-operating investment return
|
| | | | | | | | | | 18 | | | | | | 55 | | | | | | (233) | | |
Finance costs related to borrowings and long-term
payables |
| | | | | | | | | | 29 | | | | | | 99 | | | | | | 162 | | |
Amortization of value of business acquired
|
| | | | | | | | | | 40 | | | | | | 31 | | | | | | 82 | | |
M&A, business set up and restructuring related costs
|
| | | | | | | | | | 71 | | | | | | 100 | | | | | | 144 | | |
IPO related costs including incentive costs
|
| | | | | | | | | | — | | | | | | 2 | | | | | | 40 | | |
Implementation costs for significant new accounting standards such as IFRS 9 and 17 and other mandatory regulatory changes such as Group-wide Supervision
|
| | | | | | | | | | 5 | | | | | | 18 | | | | | | 31 | | |
Other non-operating items
|
| | | | | | | | | | 46 | | | | | | 116 | | | | | | (22) | | |
Adjusted operating profit before tax
|
| | | | 6.1 | | | | | | 44 | | | | | | 47 | | | | | | 125 | | |
Tax on adjusted operating profit before tax
|
| | | | | | | | | | (29) | | | | | | (34) | | | | | | (50) | | |
Adjusted operating profit after tax
|
| | | | | | | | | | 15 | | | | | | 13 | | | | | | 75 | | |
Adjusted operating profit before tax attributable to: | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | | | | | | | 44 | | | | | | 49 | | | | | | 131 | | |
Non-controlling interests
|
| | | | | | | | | | — | | | | | | (2) | | | | | | (6) | | |
Adjusted operating profit after tax attributable to: | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | | | | | | | 15 | | | | | | 15 | | | | | | 81 | | |
Non-controlling interests
|
| | | | | | | | | | — | | | | | | (2) | | | | | | (6) | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Loss of the Group from continuing operations after tax
|
| | | | (198) | | | | | | (316) | | | | | | (272) | | |
Less: | | | | | | | | | | | | | | | | | | | |
Net loss of the Company and Financing Entities(1)
|
| | | | — | | | | | | 2 | | | | | | 36 | | |
Adjusted net loss of the Operating Group from continuing
operations after tax |
| | | | (198) | | | | | | (314) | | | | | | (236) | | |
Attributable to: | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | (223) | | | | | | (349) | | | | | | (288) | | |
Perpetual securities
|
| | | | 26 | | | | | | 38 | | | | | | 65 | | |
Non-controlling interests
|
| | | | (1) | | | | | | (3) | | | | | | (13) | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Net Loss of the Group
|
| | | | (196) | | | | | | (332) | | | | | | (252) | | |
Less: | | | | | | | | | | | | | | | | | | | |
Net loss of the Company and Financing Entities(1)
|
| | | | — | | | | | | 2 | | | | | | 36 | | |
Adjusted net loss of the Operating Group
|
| | | | (196) | | | | | | (330) | | | | | | (216) | | |
Attributable to: | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | (221) | | | | | | (365) | | | | | | (268) | | |
Perpetual securities
|
| | | | 26 | | | | | | 38 | | | | | | 65 | | |
Non-controlling interests
|
| | | | (1) | | | | | | (3) | | | | | | (13) | | |
US$m
|
| |
Notes
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Finance costs, principally related to leases, included in adjusted operating profit
|
| |
6.1
|
| | | | 2 | | | | | | 8 | | | | | | 11 | | |
Finance costs related to borrowings and long-term payables
|
| |
6.2
|
| | | | 29 | | | | | | 99 | | | | | | 162 | | |
Finance costs of the Company and Financing Entities
|
| | | | | | | — | | | | | | 2 | | | | | | 36 | | |
Total
|
| | | | | | | 31 | | | | | | 109 | | | | | | 209 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Total assets of the Group
|
| | | | 30,080 | | | | | | 51,305 | | | | | | 62,550 | | |
Less: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents(1)
|
| | | | — | | | | | | (348) | | | | | | — | | |
Amount due from related parties
|
| | | | (1) | | | | | | — | | | | | | — | | |
Adjusted total assets of the Operating Group
|
| | | | 30,079 | | | | | | 50,957 | | | | | | 62,550 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Total liabilities of the Group
|
| | | | 26,057 | | | | | | 45,775 | | | | | | 54,325 | | |
Less: | | | | | | | | | | | | | | | | | | | |
Borrowings
|
| | | | — | | | | | | (346) | | | | | | — | | |
Interests payable
|
| | | | — | | | | | | (4) | | | | | | — | | |
Amount due to related parties
|
| | | | — | | | | | | (60) | | | | | | — | | |
Adjusted total liabilities of the Operating Group
|
| | | | 26,057 | | | | | | 45,365 | | | | | | 54,325 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Total equity of the Group attributable to: | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | 2,315 | | | | | | 2,918 | | | | | | 4,898 | | |
Perpetual securities
|
| | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | |
Non-controlling interests
|
| | | | 711 | | | | | | 1,004 | | | | | | 1,720 | | |
Total equity of the Group
|
| | | | 4,023 | | | | | | 5,530 | | | | | | 8,225 | | |
Add: | | | | | | | | | | | | | | | | | | | |
Share capital and share premium
|
| | | | 710 | | | | | | 1,028 | | | | | | 1,713 | | |
Less: | | | | | | | | | | | | | | | | | | | |
Non-controlling interests
|
| | | | (711) | | | | | | (966) | | | | | | (1,713) | | |
Adjusted total equity of the Operating Group attributable
to: |
| | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | 3,025 | | | | | | 3,946 | | | | | | 6,611 | | |
Perpetual securities
|
| | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | |
Non-controlling interests
|
| | | | — | | | | | | 38 | | | | | | 7 | | |
Adjusted total equity of the Operating Group
|
| | | | 4,022 | | | | | | 5,592 | | | | | | 8,225 | | |
| | |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
US$m
|
| | | | | | | | | | | | | | | | | | |
TWPI by geography | | | | | | | | | | | | | | | | | | | |
Hong Kong
|
| | | | 1,183 | | | | | | 1,443 | | | | | | 1,730 | | |
Thailand
|
| | | | 795 | | | | | | 1,140 | | | | | | 2,255 | | |
Japan
|
| | | | 1,655 | | | | | | 1,801 | | | | | | 2,131 | | |
Emerging Markets
|
| | | | 177 | | | | | | 271 | | | | | | 430 | | |
Total | | | | | 3,810 | | | | | | 4,655 | | | | | | 6,546 | | |
First year premiums by geography | | | | | | | | | | | | | | | | | | | |
Hong Kong
|
| | | | 308 | | | | | | 401 | | | | | | 283 | | |
Thailand
|
| | | | 192 | | | | | | 238 | | | | | | 584 | | |
Japan
|
| | | | 366 | | | | | | 256 | | | | | | 516 | | |
Emerging Markets
|
| | | | 89 | | | | | | 119 | | | | | | 172 | | |
Total | | | | | 955 | | | | | | 1,014 | | | | | | 1,555 | | |
Single premiums by geography | | | | | | | | | | | | | | | | | | | |
Hong Kong
|
| | | | 635 | | | | | | 418 | | | | | | 969 | | |
Thailand
|
| | | | 82 | | | | | | 229 | | | | | | 344 | | |
Japan
|
| | | | — | | | | | | — | | | | | | — | | |
Emerging Markets
|
| | | | 70 | | | | | | 76 | | | | | | 190 | | |
Total | | | | | 787 | | | | | | 723 | | | | | | 1,503 | | |
Renewal premiums by geography | | | | | | | | | | | | | | | | | | | |
Hong Kong
|
| | | | 811 | | | | | | 1,000 | | | | | | 1,350 | | |
Thailand
|
| | | | 595 | | | | | | 879 | | | | | | 1,637 | | |
Japan
|
| | | | 1,289 | | | | | | 1,545 | | | | | | 1,615 | | |
Emerging Markets
|
| | | | 81 | | | | | | 145 | | | | | | 239 | | |
Total | | | | | 2,776 | | | | | | 3,569 | | | | | | 4,841 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
TWPI | | | | | 3,810 | | | | | | 4,655 | | | | | | 6,546 | | |
90% of Single premium
|
| | | | 709 | | | | | | 651 | | | | | | 1,353 | | |
Premium not included in TWPI(1)
|
| | | | 455 | | | | | | 641 | | | | | | 783 | | |
Gross written premium
|
| | | | 4,974 | | | | | | 5,947 | | | | | | 8,682 | | |
Fee Income and change in unearned premium
|
| | | | 79 | | | | | | 100 | | | | | | 94 | | |
Premiums and fee income
|
| | | | 5,053 | | | | | | 6,047 | | | | | | 8,776 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Interest income
|
| | | | 478 | | | | | | 619 | | | | | | 867 | | |
Dividend income
|
| | | | 80 | | | | | | 82 | | | | | | 140 | | |
Rental income(1)
|
| | | | 8 | | | | | | 21 | | | | | | 25 | | |
Investment income
|
| | | | 566 | | | | | | 722 | | | | | | 1,032 | | |
Available for Sale
|
| | | | | | | | | | | | | | | | | | |
Net realized gains/(losses) from debt securities
|
| | | | (19) | | | | | | 65 | | | | | | 217 | | |
Impairment of available-for-sale financial assets
|
| | | | — | | | | | | (3) | | | | | | (7) | | |
Net gains/(losses) of available-for-sale financial assets reflected in the consolidated income statements
|
| | | | (19) | | | | | | 62 | | | | | | 210 | | |
At fair value through profit or loss
|
| | | | | | | | | | | | | | | | | | |
Net gains/(losses) of debt securities
|
| | | | (2) | | | | | | 7 | | | | | | 32 | | |
Net gains/(losses) of equity securities
|
| | | | (118) | | | | | | 278 | | | | | | 316 | | |
Net fair value movement on derivatives
|
| | | | 24 | | | | | | (81) | | | | | | 9 | | |
Net gains/(losses) in respect of financial instruments at
fair value through profit or loss |
| | | | (96) | | | | | | 204 | | | | | | 357 | | |
Net fair value movement of investment property
|
| | | | 1 | | | | | | 6 | | | | | | (8) | | |
Net foreign exchange gains/(losses)
|
| | | | (26) | | | | | | (40) | | | | | | (33) | | |
Other net realized gains/(losses)
|
| | | | 3 | | | | | | 1 | | | | | | 23 | | |
Investment experience
|
| | | | (137) | | | | | | 233 | | | | | | 549 | | |
Investment return
|
| | | | 429 | | | | | | 955 | | | | | | 1,581 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Foreign exchange losses
|
| | | | (2) | | | | | | (14) | | | | | | (19) | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Insurance contract benefits
|
| | | | 1,546 | | | | | | 2,200 | | | | | | 3,301 | | |
Change in insurance contract liabilities
|
| | | | 2,766 | | | | | | 3,140 | | | | | | 4,596 | | |
Investment contract benefits
|
| | | | 90 | | | | | | 22 | | | | | | 44 | | |
Insurance and investment contract benefits
|
| | | | 4,402 | | | | | | 5,362 | | | | | | 7,941 | | |
Insurance and investment contract benefits ceded
|
| | | | (639) | | | | | | (477) | | | | | | (646) | | |
Insurance and investment contract benefits, net of reinsurance ceded
|
| | | | 3,763 | | | | | | 4,885 | | | | | | 7,295 | | |
Commission and other acquisition expenses incurred
|
| | | | 1,072 | | | | | | 1,249 | | | | | | 1,525 | | |
Deferral and amortization of acquisition expenses
|
| | | | (773) | | | | | | (833) | | | | | | (693) | | |
Commission and other acquisition expenses
|
| | | | 299 | | | | | | 416 | | | | | | 832 | | |
Employee benefits expenses
|
| | | | 360 | | | | | | 439 | | | | | | 624 | | |
Depreciation
|
| | | | 19 | | | | | | 70 | | | | | | 78 | | |
Amortization
|
| | | | 15 | | | | | | 24 | | | | | | 42 | | |
Marketing and advertising
|
| | | | 56 | | | | | | 83 | | | | | | 55 | | |
Professional service fees
|
| | | | 60 | | | | | | 114 | | | | | | 165 | | |
Information technology expenses
|
| | | | 82 | | | | | | 100 | | | | | | 121 | | |
Operating lease rentals
|
| | | | 34 | | | | | | 7 | | | | | | 6 | | |
Other general expenses(1)
|
| | | | 114 | | | | | | 173 | | | | | | 121 | | |
General expenses
|
| | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | |
Investment management expenses
|
| | | | 41 | | | | | | 47 | | | | | | 62 | | |
Amortization of value of business acquired
|
| | | | 40 | | | | | | 31 | | | | | | 82 | | |
Others
|
| | | | 23 | | | | | | 77 | | | | | | 13 | | |
Other expenses
|
| | | | 104 | | | | | | 155 | | | | | | 157 | | |
Finance costs
|
| | | | 31 | | | | | | 109 | | | | | | 209 | | |
Total | | | | | 4,937 | | | | | | 6,575 | | | | | | 9,705 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Operating expenses
|
| | | | 639 | | | | | | 836 | | | | | | 978 | | |
Non-operating expenses
|
| | | | 101 | | | | | | 174 | | | | | | 234 | | |
Total general expenses(1)
|
| | | | 740 | | | | | | 1,010 | | | | | | 1,212 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Leasehold improvements, furniture and fixtures, computer equipment and others
|
| | | | 19 | | | | | | 25 | | | | | | 26 | | |
Right-of-use assets | | | | | | | | | | | | | | | | | | | |
– Premises and car park
|
| | | | — | | | | | | 38 | | | | | | 48 | | |
– Equipment and Others
|
| | | | — | | | | | | 7 | | | | | | 4 | | |
Total | | | | | 19 | | | | | | 70 | | | | | | 78 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Borrowings
|
| | | | 29 | | | | | | 94 | | | | | | 168 | | |
Lease liabilities
|
| | | | — | | | | | | 6 | | | | | | 6 | | |
Others
|
| | | | 2 | | | | | | 9 | | | | | | 35 | | |
Total | | | | | 31 | | | | | | 109 | | | | | | 209 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Wages and salaries
|
| | | | 280 | | | | | | 356 | | | | | | 486 | | |
Share-based compensation
|
| | | | 38 | | | | | | 30 | | | | | | 31 | | |
Pension costs
|
| | | | 10 | | | | | | 14 | | | | | | 33 | | |
Other employee benefits expenses
|
| | | | 32 | | | | | | 39 | | | | | | 74 | | |
Total | | | | | 360 | | | | | | 439 | | | | | | 624 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Current income tax
|
| | | | (26) | | | | | | (6) | | | | | | (60) | | |
Deferred income tax on temporary differences
|
| | | | 59 | | | | | | 26 | | | | | | 7 | | |
Total | | | | | 33 | | | | | | 20 | | | | | | (53) | | |
| | |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
|
Hong Kong
|
| |
16.5%
|
| |
16.5%
|
| |
16.5%
|
|
Thailand
|
| |
20%
|
| |
20%
|
| |
20%
|
|
Japan
|
| |
28%
|
| |
28%
|
| |
28%
|
|
Others
|
| |
12% – 30%
|
| |
12% – 30%
|
| |
12% – 30%
|
|
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Income tax reconciliation | | | | | | | | | | | | | | | | | | | |
Loss before tax from continuing operations
|
| | | | (231) | | | | | | (336) | | | | | | (219) | | |
Tax benefit / (expense) calculated at domestic tax rates applicable to profits in the respective jurisdictions
|
| | | | 66 | | | | | | 80 | | | | | | 41 | | |
Increase in tax benefit / reduction in tax expense from: | | | | | | | | | | | | | | | | | | | |
Income not subject to tax
|
| | | | 10 | | | | | | 16 | | | | | | 17 | | |
Credit in respect of a previously unrecognized tax loss or temporary difference from a prior period
|
| | | | 24 | | | | | | 27 | | | | | | 16 | | |
Amount over provided in prior years
|
| | | | 6 | | | | | | — | | | | | | — | | |
| | | | | 40 | | | | | | 43 | | | | | | 33 | | |
Decrease in tax benefit / increase in tax expense from: | | | | | | | | | | | | | | | | | | | |
Disallowed expenses
|
| | | | (37) | | | | | | (60) | | | | | | (62) | | |
Unrecognized deferred tax assets
|
| | | | (35) | | | | | | (38) | | | | | | (56) | | |
Amount under provided in prior years
|
| | | | — | | | | | | (4) | | | | | | (9) | | |
Others
|
| | | | (1) | | | | | | (1) | | | | | | — | | |
| | | | | (73) | | | | | | (103) | | | | | | (127) | | |
Total income tax benefit/(expense)
|
| | | | 33 | | | | | | 20 | | | | | | (53) | | |
US$m
|
| |
Net deferred tax
asset/(liability) at January 1 |
| |
Acquisition of
subsidiaries |
| |
Credited/
(charged) to income statements |
| |
Credited/(charged) to other
comprehensive income |
| |
Net deferred tax
asset/(liability) at December 31 |
| |||||||||||||||||||||||||||
|
Fair value
reserve(1) |
| |
Foreign
exchange |
| |
Others
|
| |||||||||||||||||||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revaluation of financial instruments
|
| | | | (266) | | | | | | — | | | | | | 99 | | | | | | 57 | | | | | | (1) | | | | | | — | | | | | | (111) | | |
Deferred acquisition costs
|
| | | | (201) | | | | | | — | | | | | | (58) | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (260) | | |
Insurance and investment contract liabilities
|
| | | | 194 | | | | | | — | | | | | | 50 | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 247 | | |
Value of business acquired
|
| | | | (144) | | | | | | — | | | | | | 7 | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (138) | | |
Intangible assets
|
| | | | (6) | | | | | | — | | | | | | (7) | | | | | | — | | | | | | — | | | | | | — | | | | | | (13) | | |
Losses available for offset against
future taxable income |
| | | | 61 | | | | | | — | | | | | | (32) | | | | | | — | | | | | | 10 | | | | | | — | | | | | | 39 | | |
Others
|
| | | | 101 | | | | | | — | | | | | | — | | | | | | — | | | | | | (8) | | | | | | — | | | | | | 93 | | |
Total | | | | | (261) | | | | | | — | | | | | | 59 | | | | | | 57 | | | | | | 2 | | | | | | — | | | | | | (143) | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revaluation of financial instruments
|
| | | | (111) | | | | | | (297) | | | | | | 50 | | | | | | (204) | | | | | | (16) | | | | | | — | | | | | | (578) | | |
Deferred acquisition costs
|
| | | | (260) | | | | | | — | | | | | | (125) | | | | | | — | | | | | | (7) | | | | | | — | | | | | | (392) | | |
Insurance and investment contract liabilities
|
| | | | 247 | | | | | | 180 | | | | | | (27) | | | | | | — | | | | | | 14 | | | | | | — | | | | | | 414 | | |
Value of business acquired
|
| | | | (138) | | | | | | (33) | | | | | | 8 | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (164) | | |
Intangible assets
|
| | | | (13) | | | | | | 1 | | | | | | 16 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | 5 | | |
Losses available for offset against
future taxable income |
| | | | 39 | | | | | | — | | | | | | 34 | | | | | | — | | | | | | — | | | | | | — | | | | | | 73 | | |
Others
|
| | | | 93 | | | | | | 1 | | | | | | 70 | | | | | | — | | | | | | (2) | | | | | | (3) | | | | | | 159 | | |
Total | | | | | (143) | | | | | | (148) | | | | | | 26 | | | | | | (204) | | | | | | (11) | | | | | | (3) | | | | | | (483) | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revaluation of financial instruments
|
| | | | (578) | | | | | | (1) | | | | | | 37 | | | | | | (89) | | | | | | — | | | | | | — | | | | | | (631) | | |
Deferred acquisition costs
|
| | | | (392) | | | | | | — | | | | | | 22 | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (371) | | |
Insurance and investment contract liabilities
|
| | | | 414 | | | | | | (6) | | | | | | (173) | | | | | | — | | | | | | (1) | | | | | | — | | | | | | 234 | | |
Value of business acquired
|
| | | | (164) | | | | | | (13) | | | | | | 12 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | (164) | | |
Intangible assets
|
| | | | 5 | | | | | | — | | | | | | (3) | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | |
Losses available for offset against
future taxable income |
| | | | 73 | | | | | | — | | | | | | 65 | | | | | | — | | | | | | — | | | | | | — | | | | | | 138 | | |
Others
|
| | | | 159 | | | | | | 1 | | | | | | 47 | | | | | | — | | | | | | 7 | | | | | | 5 | | | | | | 219 | | |
Total | | | | | (483) | | | | | | (19) | | | | | | 7 | | | | | | (89) | | | | | | 6 | | | | | | 5 | | | | | | (573) | | |
| | |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Loss attributable to ordinary shareholders of the Company (US$m)
|
| | | | | | | | | | | | | | | | | | |
Continuing operations
|
| | | | (171) | | | | | | (266) | | | | | | (257) | | |
Add: Adjustment for vested but not yet exercised
share options issued by subsidiaries under share option award plan(1) |
| | | | — | | | | | | — | | | | | | 1 | | |
| | | | | (171) | | | | | | (266) | | | | | | (256) | | |
Discontinued operations
|
| | | | 2 | | | | | | (12) | | | | | | 14 | | |
| | | | | (169) | | | | | | (278) | | | | | | (242) | | |
Weighted average number of ordinary shares in issues(2)
|
| | | | 584,599,500 | | | | | | 584,599,500 | | | | | | 584,599,500 | | |
Basic loss per share attributable to ordinary shareholders of the Company (US$ per share)
|
| | | | | | | | | | | | | | | | | | |
Continuing operations
|
| | | | (0.29) | | | | | | (0.46) | | | | | | (0.44) | | |
Discontinued operations
|
| | | | — | | | | | | (0.02) | | | | | | 0.03 | | |
Total basic loss per share (US$ per share)
|
| | | | (0.29) | | | | | | (0.48) | | | | | | (0.41) | | |
US$m
|
| |
Goodwill
|
| |
Distribution rights
|
| |
Computer software
and others |
| |
Total
|
| ||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | 970 | | | | | | 676 | | | | | | 54 | | | | | | 1,700 | | |
Additions
|
| | | | — | | | | | | 27 | | | | | | 40 | | | | | | 67 | | |
Disposals
|
| | | | — | | | | | | — | | | | | | (2) | | | | | | (2) | | |
Foreign exchange movements
|
| | | | (1) | | | | | | 5 | | | | | | 1 | | | | | | 5 | | |
At December 31, 2018
|
| | | | 969 | | | | | | 708 | | | | | | 93 | | | | | | 1,770 | | |
Acquisition
|
| | | | 497 | | | | | | — | | | | | | 19 | | | | | | 516 | | |
Additions
|
| | | | — | | | | | | 1,239 | | | | | | 54 | | | | | | 1,293 | | |
Foreign exchange movements
|
| | | | 20 | | | | | | 96 | | | | | | (4) | | | | | | 112 | | |
At December 31, 2019
|
| | | | 1,486 | | | | | | 2,043 | | | | | | 162 | | | | | | 3,691 | | |
Acquisitions
|
| | | | 171 | | | | | | — | | | | | | 6 | | | | | | 177 | | |
Additions
|
| | | | — | | | | | | 504 | | | | | | 64 | | | | | | 568 | | |
Disposals
|
| | | | — | | | | | | (672) | | | | | | (10) | | | | | | (682) | | |
Assets held for sale
|
| | | | (1) | | | | | | — | | | | | | — | | | | | | (1) | | |
Foreign exchange movements
|
| | | | (4) | | | | | | (48) | | | | | | 7 | | | | | | (45) | | |
At December 31, 2020
|
| | | | 1,652 | | | | | | 1,827 | | | | | | 229 | | | | | | 3,708 | | |
Accumulated amortization and impairment | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | (14) | | | | | | (19) | | | | | | (17) | | | | | | (50) | | |
Amortization charge for the year
|
| | | | — | | | | | | (11) | | | | | | (15) | | | | | | (26) | | |
Impairment
|
| | | | (23) | | | | | | — | | | | | | — | | | | | | (23) | | |
At December 31, 2018
|
| | | | (37) | | | | | | (30) | | | | | | (32) | | | | | | (99) | | |
Amortization charge for the year
|
| | | | — | | | | | | (11) | | | | | | (24) | | | | | | (35) | | |
Impairment
|
| | | | — | | | | | | (63) | | | | | | — | | | | | | (63) | | |
Foreign exchange movements
|
| | | | (1) | | | | | | (4) | | | | | | (2) | | | | | | (7) | | |
US$m
|
| |
Goodwill
|
| |
Distribution rights
|
| |
Computer software
and others |
| |
Total
|
| ||||||||||||
At December 31, 2019
|
| | | | (38) | | | | | | (108) | | | | | | (58) | | | | | | (204) | | |
Amortization charge for the year
|
| | | | — | | | | | | (29) | | | | | | (42) | | | | | | (71) | | |
Disposals
|
| | | | — | | | | | | 91 | | | | | | 4 | | | | | | 95 | | |
Assets held for sale
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | |
Foreign exchange movements
|
| | | | — | | | | | | 5 | | | | | | (3) | | | | | | 2 | | |
At December 31, 2020
|
| | | | (37) | | | | | | (41) | | | | | | (99) | | | | | | (177) | | |
Net book value | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2018
|
| | | | 932 | | | | | | 678 | | | | | | 61 | | | | | | 1,671 | | |
At December 31, 2019
|
| | | | 1,448 | | | | | | 1,935 | | | | | | 104 | | | | | | 3,487 | | |
At December 31, 2020
|
| | | | 1,615 | | | | | | 1,786 | | | | | | 130 | | | | | | 3,531 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Hong Kong
|
| | | | 902 | | | | | | 903 | | | | | | 915 | | |
Thailand
|
| | | | 26 | | | | | | 540 | | | | | | 536 | | |
Japan
|
| | | | 4 | | | | | | 4 | | | | | | 4 | | |
Emerging markets(1)
|
| | | | — | | | | | | 1 | | | | | | 160 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Group | | | | | | | | | | | | | | | | | | | |
Investments in associates
|
| | | | 55 | | | | | | 48 | | | | | | 64 | | |
Investments in a joint venture
|
| | | | 245 | | | | | | 248 | | | | | | 243 | | |
Total | | | | | 300 | | | | | | 296 | | | | | | 307 | | |
Entity
|
| |
Place of
incorporation |
| |
Principal
activity |
| |
Type of
investments |
| |
Type of
shares held |
| |
Group’s interest %
|
| ||||||
|
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| ||||||||||||||
CompareAsia Group Capital Limited | | |
Cayman
Islands |
| |
Operation of online
platforms and provision of insurance brokerage and marketing services |
| | Associate | | | Ordinary | | |
—
|
| |
25.50%
|
| |
25.40%
|
|
One George Street LLP
|
| | Singapore | | |
Investment in real
estate properties in Singapore |
| |
Joint
venture |
| | Ordinary | | |
50.00%
|
| |
50.00%
|
| |
50.00%
|
|
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Assets
|
| | | | 850 | | | | | | 868 | | | | | | 860 | | |
Liabilities
|
| | | | (441) | | | | | | (453) | | | | | | (457) | | |
Equity
|
| | | | 409 | | | | | | 415 | | | | | | 403 | | |
The Group’s share in equity – 50%
|
| | | | 205 | | | | | | 208 | | | | | | 202 | | |
Goodwill
|
| | | | 40 | | | | | | 40 | | | | | | 41 | | |
Group’s carrying amount of the investment in OGS LLP
|
| | | | 245 | | | | | | 248 | | | | | | 243 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Revenue
|
| | | | 37 | | | | | | 38 | | | | | | 37 | | |
Expenses
|
| | | | (3) | | | | | | (19) | | | | | | (35) | | |
Profit for the year
|
| | | | 34 | | | | | | 19 | | | | | | 2 | | |
Other comprehensive income/(loss) for the year
|
| | | | (8) | | | | | | 6 | | | | | | 6 | | |
Total comprehensive income for the year
|
| | | | 26 | | | | | | 25 | | | | | | 8 | | |
Group’s share of total comprehensive income for the year – 50%
|
| | | | 13 | | | | | | 13 | | | | | | 4 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Net profit/(loss)
|
| | | | 1 | | | | | | (2) | | | | | | (2) | | |
Other comprehensive income/(loss)
|
| | | | — | | | | | | — | | | | | | — | | |
Total comprehensive income/(loss)
|
| | | | 1 | | | | | | (2) | | | | | | (2) | | |
US$m
|
| |
Property, plant and equipment
|
| |
Right-of-use assets
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
|
Leasehold
improvements |
| |
Furniture
and fixtures and others |
| |
Computer
equipment |
| |
Property
held for own use |
| |
Premises
and car parks |
| |
Equipment
and others |
| ||||||||||||||||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | 34 | | | | | | 14 | | | | | | 40 | | | | | | 10 | | | | | | — | | | | | | — | | | | | | 98 | | |
Additions
|
| | | | 12 | | | | | | 2 | | | | | | 17 | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | | | 31 | | |
Disposals
|
| | | | (1) | | | | | | (7) | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | (9) | | |
Foreign exchange movements
|
| | | | — | | | | | | 6 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6 | | |
At December 31, 2018
|
| | | | 45 | | | | | | 15 | | | | | | 56 | | | | | | 10 | | | | | | — | | | | | | — | | | | | | 126 | | |
Opening adjustment on adoption of IFRS 16
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 98 | | | | | | 17 | | | | | | 115 | | |
At January 1, 2019, as adjusted
|
| | | | 45 | | | | | | 15 | | | | | | 56 | | | | | | 10 | | | | | | 98 | | | | | | 17 | | | | | | 241 | | |
Acquisition of subsidiaries
|
| | | | 2 | | | | | | 2 | | | | | | 5 | | | | | | — | | | | | | 12 | | | | | | 1 | | | | | | 22 | | |
Additions
|
| | | | 14 | | | | | | 2 | | | | | | 15 | | | | | | — | | | | | | 35 | | | | | | 3 | | | | | | 69 | | |
Disposals
|
| | | | (2) | | | | | | (1) | | | | | | (1) | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (5) | | |
Foreign exchange movements
|
| | | | (1) | | | | | | — | | | | | | 2 | | | | | | 1 | | | | | | 3 | | | | | | — | | | | | | 5 | | |
At December 31, 2019
|
| | | | 58 | | | | | | 18 | | | | | | 77 | | | | | | 11 | | | | | | 147 | | | | | | 21 | | | | | | 332 | | |
Acquisition of subsidiaries
|
| | | | 3 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 8 | | | | | | — | | | | | | 12 | | |
Additions
|
| | | | 11 | | | | | | — | | | | | | 2 | | | | | | — | | | | | | 58 | | | | | | 8 | | | | | | 79 | | |
Disposals
|
| | | | (3) | | | | | | (6) | | | | | | (2) | | | | | | — | | | | | | (19) | | | | | | (4) | | | | | | (34) | | |
Disposal of subsidiaries
|
| | | | — | | | | | | — | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | |
Foreign exchange movements
|
| | | | 1 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 5 | | |
At December 31, 2020
|
| | | | 70 | | | | | | 13 | | | | | | 77 | | | | | | 11 | | | | | | 197 | | | | | | 25 | | | | | | 393 | | |
Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At January 1, 2018
|
| | | | (17) | | | | | | (5) | | | | | | (25) | | | | | | — | | | | | | — | | | | | | — | | | | | | (47) | | |
Disposals
|
| | | | 1 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | |
Depreciation charge for the year
|
| | | | (7) | | | | | | (3) | | | | | | (9) | | | | | | — | | | | | | — | | | | | | — | | | | | | (19) | | |
At December 31, 2018
|
| | | | (23) | | | | | | (8) | | | | | | (33) | | | | | | — | | | | | | — | | | | | | — | | | | | | (64) | | |
Disposals
|
| | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3 | | |
Depreciation charge for the year
|
| | | | (9) | | | | | | (3) | | | | | | (13) | | | | | | — | | | | | | (38) | | | | | | (7) | | | | | | (70) | | |
Impairment
|
| | | | (5) | | | | | | — | | | | | | (1) | | | | | | — | | | | | | — | | | | | | (9) | | | | | | (15) | | |
Foreign exchange movements
|
| | | | (1) | | | | | | — | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2) | | |
At December 31, 2019
|
| | | | (37) | | | | | | (10) | | | | | | (47) | | | | | | — | | | | | | (38) | | | | | | (16) | | | | | | (148) | | |
US$m
|
| |
Property, plant and equipment
|
| |
Right-of-use assets
|
| |
Total
|
| |||||||||||||||||||||||||||||||||
|
Leasehold
improvements |
| |
Furniture
and fixtures and others |
| |
Computer
equipment |
| |
Property
held for own use |
| |
Premises
and car parks |
| |
Equipment
and others |
| ||||||||||||||||||||||||||
Accumulated depreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2019
|
| | | | (37) | | | | | | (10) | | | | | | (47) | | | | | | — | | | | | | (38) | | | | | | (16) | | | | | | (148) | | |
Additions
|
| | | | (3) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3) | | |
Disposals
|
| | | | 2 | | | | | | 4 | | | | | | 8 | | | | | | — | | | | | | 16 | | | | | | 4 | | | | | | 34 | | |
Disposal of subsidiaries
|
| | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | |
Depreciation charge for the year
|
| | | | (10) | | | | | | (2) | | | | | | (14) | | | | | | — | | | | | | (48) | | | | | | (4) | | | | | | (78) | | |
Foreign exchange movements
|
| | | | (1) | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (3) | | | | | | — | | | | | | (5) | | |
At December 31, 2020
|
| | | | (49) | | | | | | (8) | | | | | | (53) | | | | | | — | | | | | | (73) | | | | | | (16) | | | | | | (199) | | |
Net book value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2018
|
| | | | 22 | | | | | | 7 | | | | | | 23 | | | | | | 10 | | | | | | — | | | | | | — | | | | | | 62 | | |
At December 31, 2019
|
| | | | 21 | | | | | | 8 | | | | | | 30 | | | | | | 11 | | | | | | 109 | | | | | | 5 | | | | | | 184 | | |
At December 31, 2020
|
| | | | 21 | | | | | | 5 | | | | | | 24 | | | | | | 11 | | | | | | 124 | | | | | | 9 | | | | | | 194 | | |
US$m
|
| | | | | | |
Fair value | | | | | | | |
At January 1, 2018
|
| | | | — | | |
Additions
|
| | | | 305 | | |
Fair value gains/(losses)
|
| | | | 1 | | |
At December 31, 2018
|
| | | | 306 | | |
Additions
|
| | | | 226 | | |
Fair value gains/(losses)
|
| | | | 6 | | |
Foreign exchange movements
|
| | | | 4 | | |
At December 31, 2019
|
| | | | 542 | | |
Additions
|
| | | | 44 | | |
Fair value gains/(losses)
|
| | | | (8) | | |
Foreign exchange movements
|
| | | | 31 | | |
At December 31, 2020
|
| | | | 609 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Amounts recoverable from reinsurers
|
| | | | 305 | | | | | | 484 | | | | | | 383 | | |
Ceded insurance and investment contract liabilities
|
| | | | 2,030 | | | | | | 2,396 | | | | | | 2,849 | | |
Total(1) | | | | | 2,335 | | | | | | 2,880 | | | | | | 3,232 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Carrying amount | | | | | | | | | | | | | | | | | | | |
Deferred acquisition costs on insurance contracts
|
| | | | 2,078 | | | | | | 2,961 | | | | | | 3,738 | | |
Value of business acquired
|
| | | | 669 | | | | | | 805 | | | | | | 853 | | |
Total | | | | | 2,747 | | | | | | 3,766 | | | | | | 4,591 | | |
| | |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Movements in the year | | | | | | | | | | | | | | | | | | | |
At beginning of year
|
| | | | 2,010 | | | | | | 2,747 | | | | | | 3,766 | | |
Deferral and amortization of acquisition costs
|
| | | | 694 | | | | | | 749 | | | | | | 662 | | |
Acquisition of subsidiaries
|
| | | | — | | | | | | 161 | | | | | | 129 | | |
Disposal of business
|
| | | | — | | | | | | — | | | | | | (5) | | |
Foreign exchange movements
|
| | | | 4 | | | | | | 57 | | | | | | 82 | | |
Other movements
|
| | | | 39 | | | | | | 52 | | | | | | (43) | | |
At end of year
|
| | | | 2,747 | | | | | | 3,766 | | | | | | 4,591 | | |
|
Standard and Poor’s and Fitch
|
| |
Moody’s
|
| |
Internal ratings reported as
|
|
|
AAA
|
| |
Aaa
|
| |
AAA
|
|
|
AA+ to AA-
|
| |
Aa1 to Aa3
|
| |
AA
|
|
|
A+ to A-
|
| |
A1 to A3
|
| |
A
|
|
|
BBB+ to BBB-
|
| |
Baa1 to Baa3
|
| |
BBB
|
|
|
BB+ to BB-
|
| |
Ba1 to Ba3
|
| |
BB
|
|
|
B+ to B-
|
| |
B1 to B3
|
| |
B
|
|
|
CCC and below
|
| |
Caa1 and below
|
| |
Not rated
|
|
US$m
|
| |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
|
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and
shareholder investments |
| |
Total
|
| |||||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government bonds – issued in local currency | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | — | | | | | | 781 | | | | | | — | | | | | | 173 | | | | | | 954 | | |
Japan
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,290 | | | | | | 3,290 | | |
Thailand
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,874 | | | | | | 1,874 | | |
Other
|
| | |
|
—
|
| | | | | 3 | | | | |
|
—
|
| | | | | 64 | | | | | | 67 | | |
Sub-total | | | | | — | | | | | | 784 | | | | | | — | | | | | | 5,401 | | | | | | 6,185 | | |
US$m
|
| |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
|
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and
shareholder investments |
| |
Total
|
| |||||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
Government bonds – issued in foreign currency | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Belgium
|
| | | | — | | | | | | — | | | | | | — | | | | | | 57 | | | | | | 57 | | |
Saudi Arabia
|
| | | | — | | | | | | 73 | | | | | | — | | | | | | — | | | | | | 73 | | |
Mexico
|
| | | | — | | | | | | — | | | | | | — | | | | | | 60 | | | | | | 60 | | |
Indonesia
|
| | | | — | | | | | | 14 | | | | | | — | | | | | | 64 | | | | | | 78 | | |
Other
|
| | | | — | | | | | | 37 | | | | | | — | | | | | | 53 | | | | | | 90 | | |
Sub-total | | | | | — | | | | | | 124 | | | | | | — | | | | | | 234 | | | | | | 358 | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government agency bonds(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 15 | | | | | | — | | | | | | 260 | | | | | | 275 | | |
AA
|
| | | | 6 | | | | | | 54 | | | | | | — | | | | | | 332 | | | | | | 392 | | |
A
|
| | | | — | | | | | | 21 | | | | | | — | | | | | | 141 | | | | | | 162 | | |
BBB
|
| | | | — | | | | | | — | | | | | | — | | | | | | 102 | | | | | | 102 | | |
Below investment grade
|
| | | | — | | | | | | — | | | | | | — | | | | | | 30 | | | | | | 30 | | |
Not rated
|
| | | | — | | | | | | — | | | | | | — | | | | | | 23 | | | | | | 23 | | |
Sub-total | | | | | 6 | | | | | | 90 | | | | | | — | | | | | | 888 | | | | | | 984 | | |
Corporate bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 19 | | | | | | — | | | | | | 1 | | | | | | 20 | | |
AA
|
| | | | 23 | | | | | | 245 | | | | | | — | | | | | | 130 | | | | | | 398 | | |
A
|
| | | | 28 | | | | | | 3,022 | | | | | | — | | | | | | 897 | | | | | | 3,947 | | |
BBB
|
| | | | 3 | | | | | | 2,633 | | | | | | — | | | | | | 1,092 | | | | | | 3,728 | | |
Below investment grade
|
| | | | — | | | | | | 35 | | | | | | — | | | | | | 253 | | | | | | 288 | | |
Not rated
|
| | | | — | | | | | | 41 | | | | | | — | | | | | | 19 | | | | | | 60 | | |
Sub-total | | | | | 54 | | | | | | 5,995 | | | | | | — | | | | | | 2,392 | | | | | | 8,441 | | |
Structured securities(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 25 | | | | | | — | | | | | | — | | | | | | 25 | | |
AA
|
| | | | — | | | | | | — | | | | | | — | | | | | | 499 | | | | | | 499 | | |
Sub-total | | | | | — | | | | | | 25 | | | | | | — | | | | | | 499 | | | | | | 524 | | |
Others | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable investment funds
|
| | | | — | | | | | | — | | | | | | — | | | | | | 254 | | | | | | 254 | | |
Certificate of deposits
|
| | | | — | | | | | | — | | | | | | — | | | | | | 21 | | | | | | 21 | | |
Others
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 2 | | |
Sub-total | | | | | — | | | | | | — | | | | | | — | | | | | | 277 | | | | | | 277 | | |
Total(3) | | | | | 60 | | | | | | 7,018 | | | | | | — | | | | | | 9,691 | | | | | | 16,769 | | |
US$m
|
| |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
|
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and shareholder
investments |
| |
Total
|
| |||||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government bonds – issued in local currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | — | | | | | | 671 | | | | | | — | | | | | | 284 | | | | | | 955 | | |
Japan
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,534 | | | | | | 2,534 | | |
Thailand
|
| | | | — | | | | | | — | | | | | | — | | | | | | 11,155 | | | | | | 11,155 | | |
Other
|
| | | | — | | | | | | 6 | | | | | | 20 | | | | | | 131 | | | | | | 157 | | |
Sub-total | | | | | — | | | | | | 677 | | | | | | 20 | | | | | | 14,104 | | | | | | 14,801 | | |
Government bonds – issued in foreign currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Belgium
|
| | | | — | | | | | | 59 | | | | | | — | | | | | | — | | | | | | 59 | | |
Saudi Arabia
|
| | | | — | | | | | | 82 | | | | | | — | | | | | | — | | | | | | 82 | | |
Mexico
|
| | | | — | | | | | | — | | | | | | — | | | | | | 61 | | | | | | 61 | | |
Indonesia
|
| | | | — | | | | | | 19 | | | | | | — | | | | | | 19 | | | | | | 38 | | |
Other
|
| | | | 2 | | | | | | 37 | | | | | | — | | | | | | 44 | | | | | | 83 | | |
Sub-total | | | | | 2 | | | | | | 197 | | | | | | — | | | | | | 124 | | | | | | 323 | | |
Government agency bonds(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 21 | | | | | | — | | | | | | 175 | | | | | | 196 | | |
AA
|
| | | | 5 | | | | | | 70 | | | | | | — | | | | | | 343 | | | | | | 418 | | |
A
|
| | | | — | | | | | | 14 | | | | | | — | | | | | | 141 | | | | | | 155 | | |
BBB
|
| | | | — | | | | | | 4 | | | | | | — | | | | | | 134 | | | | | | 138 | | |
Below investment grade
|
| | | | — | | | | | | — | | | | | | — | | | | | | 28 | | | | | | 28 | | |
Not rated
|
| | | | — | | | | | | — | | | | | | — | | | | | | 26 | | | | | | 26 | | |
Sub-total | | | | | 5 | | | | | | 109 | | | | | | — | | | | | | 847 | | | | | | 961 | | |
Corporate bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 23 | | | | | | — | | | | | | 1 | | | | | | 24 | | |
AA
|
| | | | 22 | | | | | | 233 | | | | | | — | | | | | | 112 | | | | | | 367 | | |
A
|
| | | | 34 | | | | | | 3,026 | | | | | | 23 | | | | | | 1,847 | | | | | | 4,930 | | |
BBB
|
| | | | 3 | | | | | | 3,306 | | | | | | — | | | | | | 3,580 | | | | | | 6,889 | | |
Below investment grade
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | 1,410 | | | | | | 1,422 | | |
Not rated
|
| | | | — | | | | | | 47 | | | | | | — | | | | | | 70 | | | | | | 117 | | |
Sub-total | | | | | 59 | | | | | | 6,647 | | | | | | 23 | | | | | | 7,020 | | | | | | 13,749 | | |
Structured securities(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 70 | | | | | | — | | | | | | 2 | | | | | | 72 | | |
AA
|
| | | | — | | | | | | 2 | | | | | | — | | | | | | 663 | | | | | | 665 | | |
A
|
| | | | — | | | | | | 20 | | | | | | — | | | | | | — | | | | | | 20 | | |
BBB
|
| | | | — | | | | | | 3 | | | | | | — | | | | | | 2 | | | | | | 5 | | |
Below investment grade
|
| | | | — | | | | | | 5 | | | | | | — | | | | | | 3 | | | | | | 8 | | |
Sub-total | | | | | — | | | | | | 100 | | | | | | — | | | | | | 670 | | | | | | 770 | | |
US$m
|
| |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
|
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and
shareholder investments |
| |
Total
|
| |||||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
Others | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable investment funds
|
| | | | — | | | | | | — | | | | | | — | | | | | | 313 | | | | | | 313 | | |
Certificate of deposits
|
| | | | — | | | | | | — | | | | | | — | | | | | | 24 | | | | | | 24 | | |
Others
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5 | | | | | | 5 | | |
Sub-total | | | | | — | | | | | | — | | | | | | — | | | | | | 342 | | | | | | 342 | | |
Total(3) | | | | | 66 | | | | | | 7,730 | | | | | | 43 | | | | | | 23,107 | | | | | | 30,946 | | |
|
US$m
|
| |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
|
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and shareholder
investments |
| |
Total
|
| |||||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government bonds – issued in local currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | — | | | | | | 1,028 | | | | | | — | | | | | | 327 | | | | | | 1,355 | | |
Japan
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,561 | | | | | | 2,561 | | |
Thailand
|
| | | | — | | | | | | — | | | | | | — | | | | | | 12,903 | | | | | | 12,903 | | |
Indonesia
|
| | | | — | | | | | | — | | | | | | — | | | | | | 133 | | | | | | 133 | | |
Vietnam
|
| | | | — | | | | | | 7 | | | | | | — | | | | | | 38 | | | | | | 45 | | |
Malaysia
|
| | | | — | | | | | | — | | | | | | 23 | | | | | | 71 | | | | | | 94 | | |
Other
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | 48 | | | | | | 49 | | |
Sub-total | | | | | — | | | | | | 1,036 | | | | | | 23 | | | | | | 16,081 | | | | | | 17,140 | | |
Government bonds – issued in foreign currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Qatar
|
| | | | — | | | | | | 53 | | | | | | — | | | | | | 9 | | | | | | 62 | | |
Belgium
|
| | | | — | | | | | | 62 | | | | | | — | | | | | | — | | | | | | 62 | | |
Mexico
|
| | | | — | | | | | | — | | | | | | — | | | | | | 64 | | | | | | 64 | | |
Saudi Arabia
|
| | | | — | | | | | | 177 | | | | | | — | | | | | | — | | | | | | 177 | | |
Indonesia
|
| | | | — | | | | | | 25 | | | | | | — | | | | | | 57 | | | | | | 82 | | |
China
|
| | | | — | | | | | | 58 | | | | | | — | | | | | | — | | | | | | 58 | | |
Other
|
| | | | 3 | | | | | | 58 | | | | | | — | | | | | | 49 | | | | | | 110 | | |
Sub-total | | | | | 3 | | | | | | 433 | | | | | | — | | | | | | 179 | | | | | | 615 | | |
US$m
|
| |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
|
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and
shareholder investments |
| |
Total
|
| |||||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
Government agency bonds(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | 10 | | | | | | 22 | | |
AA
|
| | | | 17 | | | | | | 154 | | | | | | — | | | | | | 295 | | | | | | 466 | | |
A
|
| | | | — | | | | | | 23 | | | | | | — | | | | | | 741 | | | | | | 764 | | |
BBB
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | 879 | | | | | | 891 | | |
Below investment grade
|
| | | | — | | | | | | — | | | | | | — | | | | | | 28 | | | | | | 28 | | |
Not rated
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Sub-total | | | | | 17 | | | | | | 201 | | | | | | — | | | | | | 1,953 | | | | | | 2,171 | | |
Corporate bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 86 | | | | | | — | | | | | | 7 | | | | | | 93 | | |
AA
|
| | | | 7 | | | | | | 409 | | | | | | — | | | | | | 153 | | | | | | 569 | | |
A
|
| | | | 39 | | | | | | 4,083 | | | | | | 27 | | | | | | 2,399 | | | | | | 6,548 | | |
BBB
|
| | | | 2 | | | | | | 4,041 | | | | | | — | | | | | | 3,309 | | | | | | 7,352 | | |
Below investment grade
|
| | | | — | | | | | | 85 | | | | | | — | | | | | | 1,291 | | | | | | 1,376 | | |
Not rated
|
| | | | 1 | | | | | | 223 | | | | | | — | | | | | | 91 | | | | | | 315 | | |
Sub-total | | | | | 49 | | | | | | 8,927 | | | | | | 27 | | | | | | 7,250 | | | | | | 16,253 | | |
Structured securities(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 445 | | | | | | — | | | | | | 6 | | | | | | 451 | | |
AA
|
| | | | — | | | | | | 95 | | | | | | — | | | | | | 659 | | | | | | 754 | | |
A
|
| | | | — | | | | | | 71 | | | | | | — | | | | | | 16 | | | | | | 87 | | |
BBB
|
| | | | — | | | | | | 39 | | | | | | — | | | | | | 20 | | | | | | 59 | | |
Below investment grade
|
| | | | — | | | | | | 13 | | | | | | — | | | | | | 25 | | | | | | 38 | | |
Not rated
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 2 | | |
Sub-total | | | | | — | | | | | | 663 | | | | | | — | | | | | | 728 | | | | | | 1,391 | | |
Others | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable investment funds
|
| | | | — | | | | | | — | | | | | | — | | | | | | 260 | | | | | | 260 | | |
Certificate of deposits
|
| | | | 6 | | | | | | 97 | | | | | | — | | | | | | 30 | | | | | | 133 | | |
Others
|
| | | | — | | | | | | 1 | | | | | | 4 | | | | | | — | | | | | | 5 | | |
Sub-total | | | | | 6 | | | | | | 98 | | | | | | 4 | | | | | | 290 | | | | | | 398 | | |
Total(3) | | | | | 75 | | | | | | 11,358 | | | | | | 54 | | | | | | 26,481 | | | | | | 37,968 | | |
|
US$m
|
| |
Policyholder and shareholder
|
| |
Sub-total
|
| |
Unit-linked
|
| |
Total
|
| ||||||||||||||||||
|
Participating funds and
other participating business with distinct portfolios |
| |
Other policyholder
and shareholder |
| ||||||||||||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity shares
|
| | | | 104 | | | | | | 295 | | | | | | 399 | | | | | | — | | | | | | 399 | | |
Interests in investment funds
|
| | | | 875 | | | | | | 142 | | | | | | 1,017 | | | | | | 1,218 | | | | | | 2,235 | | |
Total | | | | | 979 | | | | | | 437 | | | | | | 1,416 | | | | | | 1,218 | | | | | | 2,634 | | |
US$m
|
| |
Policyholder and shareholder
|
| |
Sub-total
|
| |
Unit-linked
|
| |
Total
|
| ||||||||||||||||||
|
Participating funds and
other participating business with distinct portfolios |
| |
Other policyholder
and shareholder |
| ||||||||||||||||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity shares
|
| | | | 524 | | | | | | 568 | | | | | | 1,092 | | | | | | — | | | | | | 1,092 | | |
Interests in investment funds
|
| | | | 1,166 | | | | | | 250 | | | | | | 1,416 | | | | | | 1,603 | | | | | | 3,019 | | |
Total | | | | | 1,690 | | | | | | 818 | | | | | | 2,508 | | | | | | 1,603 | | | | | | 4,111 | | |
US$m
|
| |
Policyholder and shareholder
|
| |
Sub-total
|
| |
Unit-linked
|
| |
Total
|
| ||||||||||||||||||
|
Participating funds and
other participating business with distinct portfolios |
| |
Other policyholder
and shareholder |
| ||||||||||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity shares
|
| | | | 811 | | | | | | 563 | | | | | | 1,374 | | | | | | — | | | | | | 1,374 | | |
Interests in investment funds
|
| | | | 1,592 | | | | | | 404 | | | | | | 1,996 | | | | | | 2,370 | | | | | | 4,366 | | |
Total | | | | | 2,403 | | | | | | 967 | | | | | | 3,370 | | | | | | 2,370 | | | | | | 5,740 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Debt securities | | | | | | | | | | | | | | | | | | | |
Listed
|
| | | | 11,036 | | | | | | 12,758 | | | | | | 17,182 | | |
Unlisted
|
| | | | 5,733 | | | | | | 18,188 | | | | | | 20,786 | | |
Total | | | | | 16,769 | | | | | | 30,946 | | | | | | 37,968 | | |
Equity securities
|
| | | | | | | | | | | | | | | | | | |
Policyholder and shareholder | | | | | | | | | | | | | | | | | | | |
Listed
|
| | | | 676 | | | | | | 1,988 | | | | | | 1,474 | | |
Unlisted
|
| | | | 740 | | | | | | 520 | | | | | | 1,896 | | |
Unit-linked | | | | | | | | | | | | | | | | | | | |
Listed
|
| | | | 44 | | | | | | 68 | | | | | | 382 | | |
Unlisted
|
| | | | 1,174 | | | | | | 1,535 | | | | | | 1,988 | | |
Total | | | | | 2,634 | | | | | | 4,111 | | | | | | 5,740 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Policy loans
|
| | | | 368 | | | | | | 797 | | | | | | 856 | | |
Secured loans
|
| | | | 6 | | | | | | 6 | | | | | | 11 | | |
Accreting deposits and promissory notes
|
| | | | 341 | | | | | | 813 | | | | | | 717 | | |
Term deposits
|
| | | | 65 | | | | | | 83 | | | | | | 171 | | |
Other financial receivables
|
| | | | 4 | | | | | | 7 | | | | | | 1 | | |
Provision for impairment
|
| | | | (2) | | | | | | (5) | | | | | | (2) | | |
At end of year
|
| | | | 782 | | | | | | 1,701 | | | | | | 1,754 | | |
US$m
|
| |
Notional
amount |
| |
Fair value
|
| ||||||||||||
|
Assets
|
| |
Liabilities
|
| ||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | |
Foreign exchange contracts | | | | | | | | | | | | | | | | | | | |
Forwards
|
| | | | 4,667 | | | | | | 27 | | | | | | (17) | | |
Cross-currency swaps
|
| | | | 23 | | | | | | 2 | | | | | | — | | |
Total foreign exchange contracts
|
| | | | 4,690 | | | | | | 29 | | | | | | (17) | | |
Others | | | | | | | | | | | | | | | | | | | |
Warrants and options
|
| | | | 28 | | | | | | — | | | | | | — | | |
Bond forward contracts
|
| | | | 133 | | | | | | 1 | | | | | | (4) | | |
Total | | | | | 4,851 | | | | | | 30 | | | | | | (21) | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Foreign exchange contracts | | | | | | | | | | | | | | | | | | | |
Forwards
|
| | | | 7,092 | | | | | | 5 | | | | | | (97) | | |
Cross-currency swaps
|
| | | | 722 | | | | | | 68 | | | | | | (40) | | |
Total foreign exchange contracts
|
| | | | 7,814 | | | | | | 73 | | | | | | (137) | | |
Interest rate swaps
|
| | | | 1,027 | | | | | | 1 | | | | | | (30) | | |
Others | | | | | | | | | | | | | | | | | | | |
Bond forward contracts
|
| | | | 768 | | | | | | 119 | | | | | | — | | |
Total | | | | | 9,609 | | | | | | 193 | | | | | | (167) | | |
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Foreign exchange contracts | | | | | | | | | | | | | | | | | | | |
Forwards
|
| | | | 8,798 | | | | | | 55 | | | | | | (82) | | |
Cross-currency swaps
|
| | | | 1,002 | | | | | | 33 | | | | | | (48) | | |
Total foreign exchange contracts
|
| | | | 9,800 | | | | | | 88 | | | | | | (130) | | |
Interest rate swaps
|
| | | | 2,376 | | | | | | 2 | | | | | | (12) | | |
Others | | | | | | | | | | | | | | | | | | | |
Warrants and options
|
| | | | 8 | | | | | | 8 | | | | | | — | | |
Bond forward contracts
|
| | | | 1,340 | | | | | | 82 | | | | | | (37) | | |
Credit default swaps
|
| | | | 1,500 | | | | | | — | | | | | | (35) | | |
Total | | | | | 15,024 | | | | | | 180 | | | | | | (214) | | |
US$m
|
| |
Fair value hierarchy
|
| |
Total
|
| ||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment property
|
| | | | — | | | | | | — | | | | | | 306 | | | | | | 306 | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 1,216 | | | | | | 15,486 | | | | | | 7 | | | | | | 16,709 | | |
Government bonds
|
| | | | 1,022 | | | | | | 5,521 | | | | | | — | | | | | | 6,543 | | |
Government agency bonds
|
| | | | — | | | | | | 978 | | | | | | — | | | | | | 978 | | |
Corporate bonds
|
| | | | 42 | | | | | | 8,340 | | | | | | 5 | | | | | | 8,387 | | |
Structured securities
|
| | | | — | | | | | | 524 | | | | | | — | | | | | | 524 | | |
Others
|
| | | | 152 | | | | | | 123 | | | | | | 2 | | | | | | 277 | | |
At fair value through profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | — | | | | | | 60 | | | | | | — | | | | | | 60 | | |
Government agency bonds
|
| | | | — | | | | | | 6 | | | | | | — | | | | | | 6 | | |
Corporate bonds
|
| | | | — | | | | | | 54 | | | | | | — | | | | | | 54 | | |
Equity securities
|
| | | | 720 | | | | | | 971 | | | | | | 943 | | | | | | 2,634 | | |
Derivative financial instruments
|
| | | | — | | | | | | 30 | | | | | | — | | | | | | 30 | | |
Financial assets measured at fair value and held by discontinued operations
|
| | | | — | | | | | | 346 | | | | | | — | | | | | | 346 | | |
Total assets on a recurring fair value measurement basis
|
| | | | 1,936 | | | | | | 16,893 | | | | | | 1,256 | | | | | | 20,085 | | |
% of Total
|
| | | | 10% | | | | | | 84% | | | | | | 6% | | | | | | 100% | | |
US$m
|
| |
Fair value hierarchy
|
| |
Total
|
| ||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||||
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment contract liabilities without DPF
|
| | | | — | | | | | | — | | | | | | 182 | | | | | | 182 | | |
Derivative financial instruments
|
| | | | — | | | | | | 21 | | | | | | — | | | | | | 21 | | |
Financial liabilities measured at fair value and held by discontinued operations
|
| | | | — | | | | | | 346 | | | | | | — | | | | | | 346 | | |
Total liabilities on a recurring fair value measurement basis
|
| | | | — | | | | | | 367 | | | | | | 182 | | | | | | 549 | | |
% of Total
|
| | |
|
—%
|
| | | |
|
67%
|
| | | |
|
33%
|
| | | |
|
100%
|
| |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment property
|
| | | | — | | | | | | — | | | | | | 542 | | | | | | 542 | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans and deposits
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Available for sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 1,297 | | | | | | 29,523 | | | | | | 17 | | | | | | 30,837 | | |
Government bonds
|
| | | | 1,006 | | | | | | 14,096 | | | | | | — | | | | | | 15,102 | | |
Government agency bonds
|
| | | | — | | | | | | 956 | | | | | | — | | | | | | 956 | | |
Corporate bonds
|
| | | | 90 | | | | | | 13,563 | | | | | | 14 | | | | | | 13,667 | | |
Structured securities
|
| | | | — | | | | | | 770 | | | | | | — | | | | | | 770 | | |
Others
|
| | | | 201 | | | | | | 138 | | | | | | 3 | | | | | | 342 | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
At fair value through profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | — | | | | | | 109 | | | | | | — | | | | | | 109 | | |
Government bonds
|
| | | | — | | | | | | 22 | | | | | | — | | | | | | 22 | | |
Government agency bonds
|
| | | | — | | | | | | 5 | | | | | | — | | | | | | 5 | | |
Corporate bonds
|
| | | | — | | | | | | 82 | | | | | | — | | | | | | 82 | | |
Equity securities
|
| | | | 2,056 | | | | | | 733 | | | | | | 1,322 | | | | | | 4,111 | | |
Derivative financial instruments
|
| | | | — | | | | | | 193 | | | | | | — | | | | | | 193 | | |
Financial assets measured at fair value and held by discontinued operations
|
| | | | — | | | | | | 359 | | | | | | — | | | | | | 359 | | |
Total assets on a recurring fair value measurement basis
|
| | | | 3,353 | | | | | | 30,917 | | | | | | 1,881 | | | | | | 36,151 | | |
% of Total
|
| | | | 9% | | | | | | 86% | | | | | | 5% | | | | | | 100% | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment contract liabilities without DPF
|
| | | | — | | | | | | — | | | | | | 184 | | | | | | 184 | | |
Derivative financial instruments
|
| | | | — | | | | | | 167 | | | | | | — | | | | | | 167 | | |
Financial liabilities measured at fair value and held by discontinued operations
|
| | | | — | | | | | | 359 | | | | | | — | | | | | | 359 | | |
Total liabilities on a recurring fair value measurement basis
|
| | | | — | | | | | | 526 | | | | | | 184 | | | | | | 710 | | |
% of Total
|
| | | | —% | | | | | | 74% | | | | | | 26% | | | | | | 100% | | |
US$m
|
| |
Fair value hierarchy
|
| |
Total
|
| ||||||||||||||||||
|
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment property
|
| | | | — | | | | | | — | | | | | | 609 | | | | | | 609 | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 1,921 | | | | | | 35,879 | | | | | | 39 | | | | | | 37,839 | | |
Government bonds
|
| | | | 1,449 | | | | | | 16,280 | | | | | | — | | | | | | 17,729 | | |
Government agency bonds
|
| | | | — | | | | | | 2,154 | | | | | | — | | | | | | 2,154 | | |
Corporate bonds
|
| | | | 329 | | | | | | 15,810 | | | | | | 38 | | | | | | 16,177 | | |
Structured securities
|
| | | | — | | | | | | 1,390 | | | | | | 1 | | | | | | 1,391 | | |
Others
|
| | | | 143 | | | | | | 245 | | | | | | — | | | | | | 388 | | |
At fair value through profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | — | | | | | | 125 | | | | | | 4 | | | | | | 129 | | |
Government bonds
|
| | | | — | | | | | | 26 | | | | | | — | | | | | | 26 | | |
Government agency bonds
|
| | | | — | | | | | | 17 | | | | | | — | | | | | | 17 | | |
Corporate bonds
|
| | | | — | | | | | | 76 | | | | | | — | | | | | | 76 | | |
Others
|
| | | | — | | | | | | 6 | | | | | | 4 | | | | | | 10 | | |
Equity securities
|
| | | | 1,856 | | | | | | 2,078 | | | | | | 1,806 | | | | | | 5,740 | | |
Derivative financial instruments
|
| | | | 7 | | | | | | 173 | | | | | | — | | | | | | 180 | | |
Financial assets measured at fair value and held by discontinued operations
|
| | | | — | | | | | | 400 | | | | | | — | | | | | | 400 | | |
Total assets on a recurring fair value measurement basis
|
| | | | 3,784 | | | | | | 38,655 | | | | | | 2,458 | | | | | | 44,897 | | |
% of Total
|
| | | | 8% | | | | | | 86% | | | | | | 6% | | | | | | 100% | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment contract liabilities without DPF
|
| | | | — | | | | | | — | | | | | | 179 | | | | | | 179 | | |
Derivative financial instruments
|
| | | | — | | | | | | 214 | | | | | | — | | | | | | 214 | | |
Financial liabilities measured at fair value and held by discontinued operations
|
| | | | — | | | | | | 378 | | | | | | — | | | | | | 378 | | |
Total liabilities on a recurring fair value measurement basis
|
| | | | — | | | | | | 592 | | | | | | 179 | | | | | | 771 | | |
% of Total
|
| | | | —% | | | | | | 77% | | | | | | 23% | | | | | | 100% | | |
US$m
|
| |
Investment
property |
| |
Debt
securities |
| |
Equity
securities |
| |
Investment
contract liabilities without DPF |
| ||||||||||||
As at January 1, 2018
|
| | | | — | | | | | | 3 | | | | | | 449 | | | | | | (201) | | |
Net movement on investment contract liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | 19 | | |
Total gains/(losses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Reported under investment return in the consolidated income statements
|
| | | | 1 | | | | | | — | | | | | | 71 | | | | | | — | | |
Purchases
|
| | | | 305 | | | | | | 4 | | | | | | 426 | | | | | | — | | |
Transfers out of Level 3
|
| | | | — | | | | | | — | | | | | | (3) | | | | | | — | | |
As at December 31, 2018
|
| | | | 306 | | | | | | 7 | | | | | | 943 | | | | | | (182) | | |
Change in unrealized gains/(losses) included in the
consolidated income statements for assets and liabilities held at the end of the reporting period, under investment return and other expenses |
| | | | 1 | | | | | | — | | | | | | 71 | | | | | | — | | |
US$m
|
| |
Investment
property |
| |
Debt
securities |
| |
Equity
securities |
| |
Investment
contract liabilities without DPF |
| ||||||||||||
As at January 1, 2019
|
| | | | 306 | | | | | | 7 | | | | | | 943 | | | | | | (182) | | |
Net movement on investment contract liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2) | | |
Total gains/(losses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Reported under investment return in the consolidated income statements
|
| | | | 6 | | | | | | — | | | | | | 62 | | | | | | — | | |
Reported under fair value reserve and foreign currency translation reserve in the consolidated statements of comprehensive income
|
| | | | 4 | | | | | | — | | | | | | — | | | | | | — | | |
Purchases
|
| | | | 226 | | | | | | 10 | | | | | | 329 | | | | | | — | | |
Sales
|
| | | | — | | | | | | — | | | | | | (10) | | | | | | — | | |
Transfers out of Level 3
|
| | | | — | | | | | | — | | | | | | (2) | | | | | | — | | |
As at December 31, 2019
|
| | | | 542 | | | | | | 17 | | | | | | 1,322 | | | | | | (184) | | |
Change in unrealized gains/(losses) included in the
consolidated income statements for assets and liabilities held at the end of the reporting period, under investment return and other expenses |
| | | | 6 | | | | | | — | | | | | | 62 | | | | | | — | | |
US$m
|
| |
Investment
property |
| |
Debt
securities |
| |
Equity
securities |
| |
Investment
contract liabilities without DPF |
| ||||||||||||
As at January 1, 2020
|
| | | | 542 | | | | | | 17 | | | | | | 1,322 | | | | | | (184) | | |
Net movement on investment contract liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5 | | |
Total gains/(losses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Reported under investment return in the consolidated income statements
|
| | | | (8) | | | | | | — | | | | | | 190 | | | | | | — | | |
Reported under fair value reserve and foreign currency translation reserve in the consolidated statements of comprehensive income
|
| | | | 31 | | | | | | 2 | | | | | | — | | | | | | — | | |
Purchases
|
| | | | 44 | | | | | | 24 | | | | | | 310 | | | | | | — | | |
Settlements
|
| | | | — | | | | | | — | | | | | | (8) | | | | | | — | | |
Transfer out of level 3
|
| | | | — | | | | | | — | | | | | | (8) | | | | | | — | | |
As at December 31, 2020
|
| | | | 609 | | | | | | 43 | | | | | | 1,806 | | | | | | (179) | | |
Change in unrealized gains/(losses) included in the
consolidated income statements for assets and liabilities held at the end of the reporting period, under investment return and other expenses |
| | | | (8) | | | | | | — | | | | | | 190 | | | | | | — | | |
| | |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
|
Monthly market rental income (US$ per sq.m.)
|
| |
59 – 402
|
| |
60 – 566
|
| |
63 – 595
|
|
Discount rate per annum
|
| |
3.45% – 5.40%
|
| |
2.70% – 5.40%
|
| |
2.70% – 5.40%
|
|
Occupancy rate
|
| |
97%
|
| |
97% – 100%
|
| |
97% – 100%
|
|
| | |
Fair value hierarchy
|
| |||||||||||||||||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Accreting deposits
|
| | | | — | | | | | | 342 | | | | | | — | | | | | | 342 | | |
Total assets for which the fair value is disclosed
|
| | | | — | | | | | | 342 | | | | | | — | | | | | | 342 | | |
Liabilities for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Medium term/ subordinated/ guaranteed notes
|
| | | | 333 | | | | | | — | | | | | | — | | | | | | 333 | | |
Total liabilities for which the fair value is disclosed
|
| | | | 333 | | | | | | — | | | | | | — | | | | | | 333 | | |
| | |
Fair value hierarchy
|
| |||||||||||||||||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Accreting deposits
|
| | | | — | | | | | | 850 | | | | | | — | | | | | | 850 | | |
Total assets for which the fair value is disclosed
|
| | | | — | | | | | | 850 | | | | | | — | | | | | | 850 | | |
Liabilities for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Medium term / subordinated notes / guaranteed notes
|
| | | | 1,776 | | | | | | — | | | | | | — | | | | | | 1,776 | | |
Total liabilities for which the fair value is disclosed
|
| | | | 1,776 | | | | | | — | | | | | | — | | | | | | 1,776 | | |
| | |
Fair value hierarchy
|
| |||||||||||||||||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Accreting deposits
|
| | | | — | | | | | | 681 | | | | | | — | | | | | | 681 | | |
Total assets for which the fair value is disclosed
|
| | | | — | | | | | | 681 | | | | | | — | | | | | | 681 | | |
Liabilities for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Medium term / subordinated notes
|
| | | | 1,290 | | | | | | — | | | | | | — | | | | | | 1,290 | | |
Total liabilities for which the fair value is disclosed
|
| | | | 1,290 | | | | | | — | | | | | | — | | | | | | 1,290 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Insurance receivables due from insurance and investment
contract holders |
| | | | 237 | | | | | | 347 | | | | | | 524 | | |
Accounts receivable(1)
|
| | | | 26 | | | | | | 42 | | | | | | 355 | | |
Accrued investment income
|
| | | | 165 | | | | | | 238 | | | | | | 234 | | |
Restricted cash
|
| | | | 40 | | | | | | 177 | | | | | | 50 | | |
Deposits
|
| | | | 25 | | | | | | 28 | | | | | | 30 | | |
Prepayments
|
| | | | 61 | | | | | | 55 | | | | | | 80 | | |
Others
|
| | | | 36 | | | | | | 22 | | | | | | 12 | | |
Total | | | | | 590 | | | | | | 909 | | | | | | 1,285 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Cash
|
| | | | 1,234 | | | | | | 1,743 | | | | | | 2,555 | | |
Cash equivalents
|
| | | | 259 | | | | | | 168 | | | | | | 175 | | |
Total | | | | | 1,493 | | | | | | 1,911 | | | | | | 2,730 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
At beginning of year
|
| | | | 19,809 | | | | | | 22,731 | | | | | | 37,342 | | |
Valuation premiums and deposits
|
| | | | 4,157 | | | | | | 4,822 | | | | | | 7,583 | | |
Life insurance contracts(1)
|
| | | | | | | | | | | | | | | | | | |
New business
|
| | | | 1,595 | | | | | | 1,494 | | | | | | 2,534 | | |
In-force business
|
| | | | 2,558 | | | | | | 3,323 | | | | | | 5,046 | | |
General insurance contracts(2)
|
| | | | | | | | | | | | | | | | | | |
New business
|
| | | | 34 | | | | | | 43 | | | | | | 47 | | |
In-force business
|
| | | | (30) | | | | | | (38) | | | | | | (44) | | |
Expected investment return
|
| | | | 328 | | | | | | 482 | | | | | | 831 | | |
Liabilities released for policy termination, or other policy
benefits paid and related expenses |
| | | | (1,957) | | | | | | (2,552) | | | | | | (4,053) | | |
Life insurance contracts
|
| | | | | | | | | | | | | | | | | | |
New business
|
| | | | (112) | | | | | | (101) | | | | | | (300) | | |
In-force business
|
| | | | (1,852) | | | | | | (2,460) | | | | | | (3,745) | | |
General insurance contracts
|
| | | | | | | | | | | | | | | | | | |
New business
|
| | | | 4 | | | | | | 6 | | | | | | (4) | | |
In-force business
|
| | | | 3 | | | | | | 3 | | | | | | (4) | | |
Interest accrued and change in unit price
|
| | | | 205 | | | | | | 432 | | | | | | 478 | | |
Impact of changes in assumptions
|
| | | | 3 | | | | | | (16) | | | | | | (7) | | |
Acquisition of subsidiaries
|
| | | | — | | | | | | 10,569 | | | | | | 2,621 | | |
Foreign exchange movements
|
| | | | 186 | | | | | | 779 | | | | | | 517 | | |
Disposal of business
|
| | | | — | | | | | | — | | | | | | (80) | | |
Other movement
|
| | | | — | | | | | | 95 | | | | | | (51) | | |
At end of year
|
| | | | 22,731 | | | | | | 37,342 | | | | | | 45,181 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Deferred profit
|
| | | | 548 | | | | | | 877 | | | | | | 1,589 | | |
Unearned revenue
|
| | | | 414 | | | | | | 485 | | | | | | 568 | | |
Policyholders’ share of participating surplus
|
| | | | 142 | | | | | | 257 | | | | | | 451 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Liabilities for future policyholder benefits
|
| | | | 21,627 | | | | | | 35,723 | | | | | | 42,573 | | |
Total | | | | | 22,731 | | | | | | 37,342 | | | | | | 45,181 | | |
|
Type of contract
|
| |
Material terms and
conditions |
| |
Nature of benefits and
compensation for claims |
| |
Factors affecting
contract cash flows |
| |
Key reportable segments
|
|
Traditional participating life assurance with DPF | | | Participating products combine protection with a savings element. The basic sum assured, payable on death or maturity, may be enhanced by dividends, the timing or amount of which is at the discretion of the insurer taking into account factors such as investment experience. | | | Minimum guaranteed benefits may be enhanced based on investment experience and other considerations. | | |
•
Investment
performance
•
Expenses
•
Mortality
•
Lapses
•
Morbidity
•
Dividend / bonus
rates
|
| | All | |
Takaful | | | Products combine savings with protection, with an arrangement based on mutual assistance under which takaful participants agree to contribute to a common fund (Family risk fund) providing for mutual financial benefits payable on the occurrence of pre-agreed events. | | | Minimum guaranteed benefits may be enhanced based on investment experience and other considerations. | | |
•
Investment performance
•
Expenses
•
Mortality
•
Lapses
•
Morbidity
•
Partial withdrawals
•
Premium holidays
|
| |
Emerging markets
(Malaysia and Indonesia) |
|
Traditional non-participating life | | | Benefits paid on death, maturity, sickness or disability that are fixed and guaranteed and not at the discretion of | | | Benefits, defined in the insurance contract, are determined by the contract and are not affected by | | |
•
Mortality
•
Morbidity
•
Lapses
•
Expenses
|
| | All | |
Type of contract
|
| |
Material terms and
conditions |
| |
Nature of benefits and
compensation for claims |
| |
Factors affecting
contract cash flows |
| |
Key reportable segments
|
|
| | | the insurer. | | | investment performance or the performance of the contract as a whole. | | | | | | | |
Accident and health non-participating | | | These products provide morbidity or sickness benefits and include health, disability, critical illness and accident cover. | | | Benefits, defined in the insurance contract, are determined by the contract and are not affected by investment performance or the performance of the contract as a whole. | | |
•
Mortality
•
Morbidity
•
Lapses
•
Expenses
|
| | All | |
Universal Life | | | Universal Life contracts combine savings with protection. Account balances are credited with interest at a rate set by the insurer. | | | Benefits are based on the account balance and death and living benefits. | | |
•
Investment
performance
•
Crediting rates
•
Lapses
•
Partial withdrawals
•
Premium holidays
•
Expenses
•
Mortality
•
Morbidity
|
| | Hong Kong, Emerging Markets (Vietnam only) | |
Unit-linked | | | Investment-linked contracts combine savings with protection, the cash value of the policy depending on the value of unitized funds. | | | Benefits are based on the value of the unitized funds and death and living benefits. | | |
•
Investment
performance
•
Lapses
•
Partial withdrawals
•
Premium holidays
•
Expenses
•
Mortality
•
Morbidity
|
| | Hong Kong, Thailand, Emerging markets (Malaysia, Indonesia and Philippines only) | |
| | |
Market and credit risk
|
| | ||||||||
| | |
Direct exposure
|
| | | | | |||||
Type of contract
|
| |
Insurance contract
liabilities |
| |
Risks associated with
related investment portfolio |
| |
Indirect exposure
|
| |
Significant insurance
and lapse risks |
|
Traditional participating life assurance with DPF | | |
•
Net neutral except for the insurer’s share of participating investment performance
•
Guarantees
|
| |
•
Net neutral except for the insurer’s share of participating investment performance
|
| |
•
Investment performance
|
| |
•
Persistency
•
Mortality
•
Morbidity
|
|
Takaful | | |
•
Net neutral except for the insurer’s share of participating investment performance
•
Guarantees
|
| |
•
Net neutral except for the insurer’s share of participating investment performance
|
| |
•
Investment performance
|
| |
•
Persistency
•
Mortality
•
Morbidity
•
Partial withdrawals
•
Premium holidays
|
|
Traditional non-participating life assurance | | |
•
Investment performance
•
Asset-liability mismatch risk
|
| |
•
Asset-liability mismatch risk
•
Credit Risk
•
Investment performance
|
| |
•
Not applicable
|
| |
•
Mortality
•
Morbidity
•
Persistency
|
|
Accident and health non-participating | | |
•
Loss ratio
•
Asset-liability mismatch risk
|
| |
•
Investment performance
•
Credit risk
•
Asset-liability mismatch risk
|
| |
•
Not applicable
|
| |
•
Morbidity
•
Persistency
|
|
Universal Life | | |
•
Guarantees
•
Asset-liability mismatch risk
|
| |
•
Investment performance
•
Credit risk
•
Asset-liability mismatch risk
|
| |
•
Spread between earned rate and crediting rate to policyholders
|
| |
•
Mortality
•
Persistency
•
Partial withdrawals
•
Premium holidays
|
|
Unit-Linked | | |
•
Net neutral
|
| |
•
Net neutral
|
| |
•
Performance-related investment management fees
|
| |
•
Mortality
•
Persistency
•
Partial withdrawals
•
Premium holidays
|
|
| | |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
|
Hong Kong
|
| |
3.15% – 7.07%
|
| |
2.53% – 7.07%
|
| |
0.40% – 7.07%
|
|
Thailand
|
| |
3.25% – 4.79%
|
| |
1.75% – 4.79%
|
| |
1.75% – 4.79%
|
|
Japan
|
| |
0.60% – 1.15%
|
| |
0.14% – 1.27%
|
| |
-1.47% – 1.40%
|
|
Singapore
|
| |
1.88% – 2.40%
|
| |
1.73% – 2.65%
|
| |
2.15% – 2.65%
|
|
Malaysia
|
| |
n/a
|
| |
3.02% – 3.83%
|
| |
1.76% – 3.53%
|
|
Indonesia
|
| |
5.50% – 6.50%
|
| |
5.50% – 6.50%
|
| |
5.41% – 7.62%
|
|
Philippines
|
| |
2.70% – 4.05%
|
| |
2.70% – 4.05%
|
| |
2.70% – 4.05%
|
|
Vietnam
|
| |
3.40% – 6.50%
|
| |
3.45% – 6.50%
|
| |
2.70% – 6.50%
|
|
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
At beginning of year
|
| | | | 360 | | | | | | 316 | | | | | | 314 | | |
Premium received
|
| | | | 5 | | | | | | 5 | | | | | | 4 | | |
Surrenders and withdrawals
|
| | | | (47) | | | | | | (22) | | | | | | (35) | | |
Interest accrual and change in unit price
|
| | | | (1) | | | | | | 14 | | | | | | 16 | | |
Others
|
| | | | (1) | | | | | | 1 | | | | | | 1 | | |
At end of year
|
| | | | 316 | | | | | | 314 | | | | | | 300 | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
(Increase)/decrease in insurance contract liabilities,
increase/ (decrease) in equity and profit before tax |
| | | | | | | | | | | | | | | | | | |
0.5% increase in investment return
|
| | | | 3 | | | | | | 4 | | | | | | 8 | | |
0.5% decrease in investment return
|
| | | | (3) | | | | | | (4) | | | | | | (7) | | |
10% increase in expenses
|
| | | | (49) | | | | | | (66) | | | | | | (96) | | |
10% increase in mortality
|
| | | | (12) | | | | | | (14) | | | | | | (20) | | |
10% increase in morbidity
|
| | | | (14) | | | | | | (20) | | | | | | (31) | | |
10% increase in lapse/discontinuance rates
|
| | | | (81) | | | | | | (111) | | | | | | (141) | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
At beginning of year
|
| | | | 313 | | | | | | 538 | | | | | | 724 | | |
Commission income deferred during the year
|
| | | | 296 | | | | | | 277 | | | | | | 375 | | |
Amortization during the year
|
| | | | (73) | | | | | | (95) | | | | | | (141) | | |
Foreign exchange difference
|
| | | | 2 | | | | | | 4 | | | | | | 32 | | |
At end of year
|
| | | | 538 | | | | | | 724 | | | | | | 990 | | |
US$m
|
| |
Notes
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| ||||||||||||
Bank borrowings
|
| | | | | | | | | | 271 | | | | | | 2,223 | | | | | | 2,234 | | |
Medium term notes
|
| | | | | | | | | | 322 | | | | | | 323 | | | | | | 323 | | |
Subordinated notes
|
| | | | | | | | | | — | | | | | | 902 | | | | | | 900 | | |
Subtotal | | | | | | | | | | | 593 | | | | | | 3,448 | | | | | | 3,457 | | |
Guaranteed notes of the Financing Entities(1)
|
| | | | 1.2 | | | | | | — | | | | | | 498 | | | | | | — | | |
Total | | | | | | | | | | | 593 | | | | | | 3,946 | | | | | | 3,457 | | |
Issue date
|
| |
Nominal amount
|
| |
Interest rate
|
| |
Tenor
|
|
Bank borrowings | | | | | | | | | | |
July 31, 2018
|
| |
US$275m
|
| |
LIBOR + 2%
|
| |
3 years
|
|
February 4, 2019
|
| |
US$175m
|
| |
LIBOR + 2%
|
| |
3 years
|
|
September 13, 2019
|
| |
US$1,800m
|
| |
LIBOR + 1.5%
|
| |
3 years
|
|
Medium term notes | | | | | | | | | | |
September 24, 2014
|
| |
US$325m
|
| |
5.00%
|
| |
10 years
|
|
Subordinated notes | | | | | | | | | | |
July 9, 2019
|
| |
US$550m
|
| |
5.75%
|
| |
5 years
|
|
July 23, 2019
|
| |
US$250m
|
| |
5.75%
|
| |
5 years
|
|
July 30, 2019
|
| |
US$100m
|
| |
5.75%
|
| |
5 years
|
|
Issue date
|
| |
Nominal amount
|
| |
Interest rate
|
| | | |
Bank borrowings | | | | | | | | | | |
March 6, 2020(1)
|
| |
US$800m
|
| |
LIBOR + 1.5%
|
| |
Transferred
|
|
October 23, 2020
|
| |
US$440m
|
| |
Base rate + 0.4%
|
| |
Settled
|
|
Guaranteed notes | | | | | | | | | | |
October 28, 2019(1)
|
| |
US$250m
|
| |
4.75%
|
| |
Transferred
|
|
November 22, 2019(1)
|
| |
US$250m
|
| |
5.50%
|
| |
Transferred
|
|
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
Trade and other payables(1)
|
| | | | 846 | | | | | | 1,179 | | | | | | 1,510 | | |
Reinsurance-related payables
|
| | | | 476 | | | | | | 426 | | | | | | 385 | | |
Distribution agreement payable
|
| | | | — | | | | | | 599 | | | | | | 686 | | |
Lease liabilities
|
| | | | — | | | | | | 130 | | | | | | 145 | | |
Obligations under repurchase and forward arrangements
|
| | | | — | | | | | | — | | | | | | 429 | | |
Subtotal | | | | | 1,322 | | | | | | 2,334 | | | | | | 3,155 | | |
Payable to a related party(2)
|
| | | | — | | | | | | 60 | | | | | | — | | |
Total | | | | | 1,322 | | | | | | 2,394 | | | | | | 3,155 | | |
| | |
Number of
ordinary shares |
| |
Share capital
nominal value US$’m |
| |
Share premium
US$’m |
| |
Total share
capital and share premium US$’m |
| ||||||||||||
Authorized: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary shares of US$1 each as at December 31, 2018, 2019 and 2020
|
| | | | 25,000,000 | | | | | | 25 | | | | | | — | | | | | | 25 | | |
Issued and fully paid: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary shares of US$1 each as at December 31, 2018 and 2019
|
| | | | 1,000,010 | | | | | | 1 | | | | | | 479 | | | | | | 480 | | |
Issue of ordinary shares pursuant to Reorganization (Note 1.2.2)
|
| | | | 18,486,640 | | | | | | 18 | | | | | | 1,831 | | | | | | 1,849 | | |
Capitalization for the Transfer and Novation of Borrowings and Related Party Balances pursuant to Reorganization (Note 1.2.2)
|
| | | | — | | | | | | — | | | | | | 1,716 | | | | | | 1,716 | | |
As at December 31, 2020
|
| | | | 19,486,650 | | | | | | 19 | | | | | | 4,026 | | | | | | 4,045 | | |
| | |
Nominal amount
|
| |
Distribution rate
|
| |
Tenor
|
| |||||||||
January 24, 2017
|
| | | US$ | 250m | | | | | | 6.250% | | | | | | Perpetual | | |
June 15, 2017
|
| | | US$ | 500m | | | | | | Note 1 | | | | | | Perpetual | | |
July 6, 2017
|
| | | US$ | 250m | | | | | | Note 1 | | | | | | Perpetual | | |
February 1, 2018
|
| | | US$ | 200m | | | | | | 5.500% | | | | | | Perpetual | | |
September 16, 2019
|
| | | US$ | 600m | | | | | | 6.375% | | | | | | Perpetual | | |
US$m
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| |||||||||
January 24, 2017
|
| | | | 255 | | | | | | 255 | | | | | | 255 | | |
June 15, 2017
|
| | | | 360 | | | | | | 360 | | | | | | 360 | | |
July 6, 2017
|
| | | | 179 | | | | | | 179 | | | | | | 179 | | |
February 1, 2018
|
| | | | 203 | | | | | | 203 | | | | | | 203 | | |
September 16, 2019
|
| | | | — | | | | | | 611 | | | | | | 610 | | |
| | | | | 997 | | | | | | 1,608 | | | | | | 1,607 | | |
Subsidiary
|
| |
Primary insurance regulator
|
| |
Solvency regulation
|
|
FWD Life Insurance Company (Bermuda) Limited | | | Insurance Authority (“HKIA”) | | | Hong Kong Insurance Ordinance (“HKIO”) | |
FWD Life Insurance Public Company Limited | | | Thailand Office of Insurance Commission (“THOIC”) | | | Life Insurance Act of Thailand | |
Subsidiary
|
| |
Primary insurance regulator
|
| |
Solvency regulation
|
|
SCB Life Assurance Public Company Limited | | | Thailand Office of Insurance Commission (“THOIC”) | | | Life Insurance Act of Thailand | |
FWD Fuji Life Insurance Company, Limited | | | Financial Services Agency (“FSA”) | | | Insurance Business Act | |
| | |
December 31, 2018
|
| |
December 31, 2019
|
| |
December 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||
US$m
|
| |
Total
available capital |
| |
Regulatory
minimum capital |
| |
Solvency
Ratio |
| |
Total
available capital |
| |
Regulatory
minimum capital |
| |
Solvency
Ratio |
| |
Total
available capital |
| |
Regulatory
minimum capital |
| |
Solvency
Ratio |
| |||||||||||||||||||||||||||
FWD Life Insurance Company
(Bermuda) Limited |
| | | | 763 | | | | | | 328 | | | | | | 233% | | | | | | 1,183 | | | | | | 369 | | | | | | 321% | | | | | | 1,279 | | | | | | 442 | | | | | | 290% | | |
FWD Life Insurance Public Company Limited(1)
|
| | | | 326 | | | | | | 135 | | | | | | 241% | | | | | | 460 | | | | | | 137 | | | | | | 335% | | | | | | 1,730 | | | | | | 397 | | | | | | 436% | | |
SCB Life Assurance Public Company Limited(1)
|
| | | | — | | | | | | — | | | | | | —% | | | | | | 1,146 | | | | | | 286 | | | | | | 401% | | | | | | — | | | | | | — | | | | | | —% | | |
FWD Fuji Life Insurance Company, Limited
|
| | | | 878 | | | | | | 168 | | | | | | 1,043% | | | | | | 986 | | | | | | 189 | | | | | | 1,043% | | | | | | 1,219 | | | | | | 212 | | | | | | 1,151% | | |
US$m
|
| |
Variable interest rate
|
| |
Fixed interest rate
|
| |
Non-interest bearing
|
| |
Total
|
| ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 939 | | | | | | 15,574 | | | | | | 256 | | | | | | 16,769 | | |
Cash and cash equivalents
|
| | | | 844 | | | | | | — | | | | | | 649 | | | | | | 1,493 | | |
Loans and deposits
|
| | | | 369 | | | | | | 409 | | | | | | 4 | | | | | | 782 | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | 2,634 | | | | | | 2,634 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 30 | | | | | | 30 | | |
Reinsurance receivables
|
| | | | — | | | | | | — | | | | | | 305 | | | | | | 305 | | |
Accrued investment income
|
| | | | — | | | | | | — | | | | | | 165 | | | | | | 165 | | |
Other assets
|
| | | | 40 | | | | | | — | | | | | | 324 | | | | | | 364 | | |
Total financial assets
|
| | | | 2,192 | | | | | | 15,983 | | | | | | 4,367 | | | | | | 22,542 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings
|
| | | | 271 | | | | | | 322 | | | | | | — | | | | | | 593 | | |
Other liabilities
|
| | | | — | | | | | | — | | | | | | 1,322 | | | | | | 1,322 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 21 | | | | | | 21 | | |
Total financial liabilities
|
| | | | 271 | | | | | | 322 | | | | | | 1,343 | | | | | | 1,936 | | |
US$m
|
| |
Variable interest rate
|
| |
Fixed interest rate
|
| |
Non-interest bearing
|
| |
Total
|
| ||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 1,466 | | | | | | 29,164 | | | | | | 316 | | | | | | 30,946 | | |
Cash and cash equivalents
|
| | | | 942 | | | | | | — | | | | | | 969 | | | | | | 1,911 | | |
Loans and deposits
|
| | | | 797 | | | | | | 897 | | | | | | 7 | | | | | | 1,701 | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | 4,111 | | | | | | 4,111 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 193 | | | | | | 193 | | |
Reinsurance receivables
|
| | | | — | | | | | | — | | | | | | 484 | | | | | | 484 | | |
Accrued investment income
|
| | | | — | | | | | | — | | | | | | 238 | | | | | | 238 | | |
Other assets
|
| | | | 119 | | | | | | — | | | | | | 497 | | | | | | 616 | | |
Total financial assets
|
| | | | 3,324 | | | | | | 30,061 | | | | | | 6,815 | | | | | | 40,200 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings
|
| | | | 2,223 | | | | | | 1,723 | | | | | | — | | | | | | 3,946 | | |
Other liabilities
|
| | | | — | | | | | | 729 | | | | | | 1,665 | | | | | | 2,394 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 167 | | | | | | 167 | | |
Total financial liabilities
|
| | | | 2,223 | | | | | | 2,452 | | | | | | 1,832 | | | | | | 6,507 | | |
US$m
|
| |
Variable interest rate
|
| |
Fixed interest rate
|
| |
Non-interest bearing
|
| |
Total
|
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 2,021 | | | | | | 35,696 | | | | | | 251 | | | | | | 37,968 | | |
Cash and cash equivalents
|
| | | | 1,713 | | | | | | — | | | | | | 1,017 | | | | | | 2,730 | | |
Loans and deposits
|
| | | | 83 | | | | | | 1,670 | | | | | | 1 | | | | | | 1,754 | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | 5,740 | | | | | | 5,740 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 180 | | | | | | 180 | | |
Reinsurance receivables
|
| | | | — | | | | | | — | | | | | | 383 | | | | | | 383 | | |
Accrued investment income
|
| | | | — | | | | | | — | | | | | | 234 | | | | | | 234 | | |
Other assets
|
| | | | 48 | | | | | | — | | | | | | 923 | | | | | | 971 | | |
Total financial assets
|
| | | | 3,865 | | | | | | 37,366 | | | | | | 8,729 | | | | | | 49,960 | | |
Financial liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings(1)
|
| | | | — | | | | | | 3,457 | | | | | | — | | | | | | 3,457 | | |
Other liabilities
|
| | | | — | | | | | | 1,272 | | | | | | 1,883 | | | | | | 3,155 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 214 | | | | | | 214 | | |
Total financial liabilities
|
| | | | — | | | | | | 4,729 | | | | | | 2,097 | | | | | | 6,826 | | |
| | |
December 31, 2018
|
| |
December 31, 2019
|
| |
December 31, 2020
|
| |||||||||||||||||||||||||||
US$m
|
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| ||||||||||||||||||
Interest rate risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
+50 basis points shift in yield curves
|
| | | | 10 | | | | | | (670) | | | | | | 4 | | | | | | (1,350) | | | | | | 18 | | | | | | (1,611) | | |
-50 basis points shift in yield curves
|
| | | | (10) | | | | | | 684 | | | | | | (4) | | | | | | 1,381 | | | | | | (17) | | | | | | 1,664 | | |
| | |
December 31, 2018
|
| |
December 31, 2019
|
| |
December 31, 2020
|
| |||||||||||||||||||||||||||
US$m
|
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| ||||||||||||||||||
Equity price risk | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
10 per cent increase in equity prices
|
| | | | 117 | | | | | | — | | | | | | 184 | | | | | | — | | | | | | 229 | | | | | | — | | |
10 per cent decrease in equity prices
|
| | | | (117) | | | | | | — | | | | | | (184) | | | | | | — | | | | | | (229) | | | | | | — | | |
US$m
|
| |
United States
Dollar |
| |
Hong Kong
Dollar |
| |
Thai Baht
|
| |
Japanese Yen
|
| ||||||||||||
December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity analyzed by original currency
|
| | | | 5,200 | | | | | | (2,087) | | | | | | 909 | | | | | | (1,487) | | |
Net notional amounts of currency derivatives
|
| | | | (3,484) | | | | | | 2,625 | | | | | | 23 | | | | | | 1,861 | | |
Currency exposure
|
| | | | 1,716 | | | | | | 538 | | | | | | 932 | | | | | | 374 | | |
5% strengthening of original currency | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 21 | | | | | | 221 | | | | | | — | | | | | | — | | |
Impact on other comprehensive income
|
| | | | (14) | | | | | | (194) | | | | | | 47 | | | | | | 19 | | |
Impact on total equity
|
| | | | 7 | | | | | | 27 | | | | | | 47 | | | | | | 19 | | |
5% strengthening of the US dollar | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 21 | | | | | | (217) | | | | | | — | | | | | | — | | |
Impact on other comprehensive income
|
| | | | (14) | | | | | | 190 | | | | | | (47) | | | | | | (19) | | |
Impact on total equity
|
| | | | 7 | | | | | | (27) | | | | | | (47) | | | | | | (19) | | |
December 31, 2019
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Equity analyzed by original currency
|
| | | | 3,956 | | | | | | (2,369) | | | | | | 3,519 | | | | | | (3,112) | | |
Net notional amounts of currency derivatives
|
| | | | (4,550) | | | | | | 3,328 | | | | | | 478 | | | | | | 3,448 | | |
Currency exposure
|
| | | | (594) | | | | | | 959 | | | | | | 3,997 | | | | | | 336 | | |
5% strengthening of original currency | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 3 | | | | | | 218 | | | | | | (1) | | | | | | 1 | | |
Impact on other comprehensive income
|
| | | | 5 | | | | | | (170) | | | | | | 201 | | | | | | 16 | | |
Impact on total equity
|
| | | | 8 | | | | | | 48 | | | | | | 200 | | | | | | 17 | | |
5% strengthening of the US dollar | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 3 | | | | | | (213) | | | | | | 1 | | | | | | (1) | | |
Impact on other comprehensive income
|
| | | | 5 | | | | | | 165 | | | | | | (201) | | | | | | (16) | | |
Impact on total equity
|
| | | | 8 | | | | | | (48) | | | | | | (200) | | | | | | (17) | | |
December 31, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Equity analyzed by original currency
|
| | | | 7,868 | | | | | | (3,784) | | | | | | 3,943 | | | | | | (4,058) | | |
Net notional amounts of currency derivatives
|
| | | | (5,872) | | | | | | 3,817 | | | | | | 712 | | | | | | 4,565 | | |
Currency exposure
|
| | | | 1,996 | | | | | | 33 | | | | | | 4,655 | | | | | | 507 | | |
5% strengthening of original currency | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 128 | | | | | | 231 | | | | | | 2 | | | | | | 3 | | |
Impact on other comprehensive income
|
| | | | (89) | | | | | | (229) | | | | | | 231 | | | | | | 22 | | |
Impact on total equity
|
| | | | 39 | | | | | | 2 | | | | | | 233 | | | | | | 25 | | |
5% strengthening of the US dollar | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 128 | | | | | | (227) | | | | | | (2) | | | | | | (3) | | |
Impact on other comprehensive income
|
| | | | (89) | | | | | | 225 | | | | | | (231) | | | | | | (22) | | |
Impact on total equity
|
| | | | 39 | | | | | | (2) | | | | | | (233) | | | | | | (25) | | |
US$m
|
| |
Total
|
| |
Due in one
year or less |
| |
Due after one
year through two years |
| |
Due after two
year through five years |
| |
Due after five
years |
| |
No fixed
maturity |
| ||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale debt securities
|
| | | | 16,709 | | | | | | 779 | | | | | | 1,596 | | | | | | 1,933 | | | | | | 12,145 | | | | | | 256 | | |
Fair value through profit or loss
|
| | | | 2,694 | | | | | | 7 | | | | | | 21 | | | | | | 21 | | | | | | 11 | | | | | | 2,634 | | |
Loans and deposits
|
| | | | 782 | | | | | | 221 | | | | | | 1 | | | | | | 16 | | | | | | 259 | | | | | | 285 | | |
Derivatives financial instruments
|
| | | | 30 | | | | | | 26 | | | | | | — | | | | | | 2 | | | | | | 2 | | | | | | — | | |
Reinsurance receivables
|
| | | | 305 | | | | | | 305 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 529 | | | | | | 464 | | | | | | 15 | | | | | | 43 | | | | | | 1 | | | | | | 6 | | |
Cash and cash equivalents
|
| | | | 1,493 | | | | | | 1,493 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Assets of disposal group classified as held for sale
|
| | | | 346 | | | | | | 346 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 22,888 | | | | | | 3,641 | | | | | | 1,633 | | | | | | 2,015 | | | | | | 12,418 | | | | | | 3,181 | | |
Financial and insurance liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance and investment liabilities
(net of DAC and reinsurance) |
| | | | 18,939 | | | | | | 615 | | | | | | 344 | | | | | | 365 | | | | | | 17,615 | | | | | | — | | |
Borrowings
|
| | | | 593 | | | | | | — | | | | | | — | | | | | | 270 | | | | | | 323 | | | | | | — | | |
Derivative financial instruments
|
| | | | 21 | | | | | | 9 | | | | | | 6 | | | | | | 2 | | | | | | 4 | | | | | | — | | |
Other liabilities
|
| | | | 1,322 | | | | | | 830 | | | | | | 45 | | | | | | 2 | | | | | | 213 | | | | | | 232 | | |
Liabilities directly associated with the assets of disposal group classified as held for sale
|
| | | | 346 | | | | | | 346 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 21,221 | | | | | | 1,800 | | | | | | 395 | | | | | | 639 | | | | | | 18,155 | | | | | | 232 | | |
US$m
|
| |
Total
|
| |
Due in one
year or less |
| |
Due after one
year through two years |
| |
Due after two
year through five years |
| |
Due after five
years |
| |
No fixed
maturity |
| ||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale debt securities
|
| | | | 30,837 | | | | | | 1,017 | | | | | | 2,471 | | | | | | 3,091 | | | | | | 23,932 | | | | | | 326 | | |
Fair value through profit or loss
|
| | | | 4,220 | | | | | | 52 | | | | | | 25 | | | | | | 11 | | | | | | 21 | | | | | | 4,111 | | |
Loans and deposits
|
| | | | 1,701 | | | | | | 413 | | | | | | 11 | | | | | | 22 | | | | | | 723 | | | | | | 532 | | |
Derivatives financial instruments
|
| | | | 193 | | | | | | 5 | | | | | | 12 | | | | | | 1 | | | | | | 175 | | | | | | — | | |
Reinsurance receivables
|
| | | | 484 | | | | | | 484 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 854 | | | | | | 524 | | | | | | 54 | | | | | | 81 | | | | | | 1 | | | | | | 194 | | |
Cash and cash equivalents
|
| | | | 1,911 | | | | | | 1,911 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Assets of disposal group classified as held for sale
|
| | | | 359 | | | | | | 359 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 40,559 | | | | | | 4,765 | | | | | | 2,573 | | | | | | 3,206 | | | | | | 24,852 | | | | | | 5,163 | | |
Financial and insurance liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance and investment liabilities
(net of DAC and reinsurance) |
| | | | 32,299 | | | | | | 813 | | | | | | 356 | | | | | | 392 | | | | | | 30,738 | | | | | | — | | |
Borrowings
|
| | | | 3,946 | | | | | | — | | | | | | 272 | | | | | | 3,674 | | | | | | — | | | | | | — | | |
Derivative financial instruments
|
| | | | 167 | | | | | | 72 | | | | | | 14 | | | | | | 22 | | | | | | 59 | | | | | | — | | |
Other liabilities
|
| | | | 2,264 | | | | | | 1,095 | | | | | | 126 | | | | | | 486 | | | | | | 216 | | | | | | 341 | | |
Lease liabilities
|
| | | | 130 | | | | | | 33 | | | | | | 67 | | | | | | 19 | | | | | | 11 | | | | | | — | | |
Liabilities directly associated with the assets of disposal group classified as held for sale
|
| | | | 359 | | | | | | 359 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 39,165 | | | | | | 2,372 | | | | | | 835 | | | | | | 4,593 | | | | | | 31,024 | | | | | | 341 | | |
US$m
|
| |
Total
|
| |
Due in one
year or less |
| |
Due after one
year through two years |
| |
Due after two
year through five years |
| |
Due after five
years |
| |
No fixed
maturity |
| ||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale debt securities
|
| | | | 37,839 | | | | | | 1,324 | | | | | | 1,818 | | | | | | 5,131 | | | | | | 29,303 | | | | | | 263 | | |
Fair value through profit or loss
|
| | | | 5,869 | | | | | | 21 | | | | | | 16 | | | | | | 33 | | | | | | 59 | | | | | | 5,740 | | |
Loans and deposits
|
| | | | 1,754 | | | | | | 292 | | | | | | 123 | | | | | | 342 | | | | | | 980 | | | | | | 17 | | |
Derivatives financial instruments
|
| | | | 180 | | | | | | 75 | | | | | | 47 | | | | | | 46 | | | | | | 12 | | | | | | — | | |
Reinsurance receivables
|
| | | | 383 | | | | | | 383 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 1,205 | | | | | | 1,075 | | | | | | 51 | | | | | | 25 | | | | | | 38 | | | | | | 16 | | |
Cash and cash equivalents
|
| | | | 2,730 | | | | | | 2,730 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Assets of disposal group classified as
held for sale |
| | | | 400 | | | | | | 400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 50,360 | | | | | | 6,300 | | | | | | 2,055 | | | | | | 5,577 | | | | | | 30,392 | | | | | | 6,036 | | |
Financial and insurance liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance and investment liabilities (net of DAC and reinsurance)
|
| | | | 38,894 | | | | | | 1,506 | | | | | | 207 | | | | | | 732 | | | | | | 36,449 | | | | | | — | | |
Borrowings
|
| | | | 3,457 | | | | | | 274 | | | | | | 1,960 | | | | | | 1,223 | | | | | | — | | | | | | — | | |
Derivative financial instruments
|
| | | | 214 | | | | | | 104 | | | | | | 1 | | | | | | 72 | | | | | | 37 | | | | | | — | | |
Other liabilities
|
| | | | 3,010 | | | | | | 2,016 | | | | | | 122 | | | | | | 473 | | | | | | 369 | | | | | | 30 | | |
Lease liabilities
|
| | | | 145 | | | | | | 66 | | | | | | 27 | | | | | | 39 | | | | | | 13 | | | | | | — | | |
Liabilities directly associated with the
assets of disposal group classified as held for sale |
| | | | 378 | | | | | | 378 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 46,098 | | | | | | 4,344 | | | | | | 2,317 | | | | | | 2,539 | | | | | | 36,868 | | | | | | 30 | | |
Number of shares
|
| |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Outstanding at beginning of the year
|
| | | | 1,587,500 | | | | | | 1,319,920 | | | | | | 1,150,782 | | |
Awarded
|
| | | | 67,670 | | | | | | 178,502 | | | | | | 129,596 | | |
Vested
|
| | | | (335,250) | | | | | | (347,640) | | | | | | (357,122) | | |
Outstanding at end of the year
|
| | | | 1,319,920 | | | | | | 1,150,782 | | | | | | 923,256 | | |
Number of share-options
|
| |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Outstanding at beginning of the year
|
| | | | — | | | | | | 561,390 | | | | | | 663,427 | | |
Awarded
|
| | | | 611,538 | | | | | | 200,028 | | | | | | 204,470 | | |
Forfeited
|
| | | | (2,508) | | | | | | (18,157) | | | | | | (197,817) | | |
Vested
|
| | | | (47,640) | | | | | | (79,834) | | | | | | (79,829) | | |
Outstanding at end of the year
|
| | | | 561,390 | | | | | | 663,427 | | | | | | 590,251 | | |
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Risk-free interest rate
|
| | | | 1.82% | | | | | | 0.84% | | | | | | 0.02% | | |
Volatility
|
| | | | 30.00% | | | | | | 30.00% | | | | | | 30.00% | | |
Dividend yield
|
| | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Exercise price (US$ per share)
|
| | | | 0.01 | | | | | | 0.01 | | | | | | 0.01 | | |
Expected life of share options (in years)
|
| | | | 2.50 | | | | | | 1.50 | | | | | | 0.50 | | |
Weighted average share price (US$ per share)
|
| | | | 216.94 | | | | | | 228.17 | | | | | | 202.11 | | |
- FWD Group Limited
|
| | | | 112.46 | | | | | | 121.84 | | | | | | 104.42 | | |
- FWD Limited
|
| | | | 104.48 | | | | | | 106.33 | | | | | | 97.69 | | |
US$m
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| |||||||||
Short-term employee benefits
|
| | | | 19 | | | | | | 18 | | | | | | 17 | | |
Share-based payments
|
| | | | 24 | | | | | | 16 | | | | | | 20 | | |
Other long-term benefits
|
| | | | 2 | | | | | | 1 | | | | | | 2 | | |
Total | | | | | 45 | | | | | | 35 | | | | | | 39 | | |
US$m
|
| |
December 31, 2018
|
| |||
Properties and others expiring | | | | | | | |
Within one year
|
| | | | 47 | | |
In the second to fifth years, inclusive
|
| | | | 79 | | |
Over five years
|
| | | | 4 | | |
Total
|
| | | | 130 | | |
US$m
|
| |
December 31, 2018
|
| |
December 31, 2019
|
| |
December 31, 2020
|
| |||||||||
Within one year
|
| | | | 13 | | | | | | 18 | | | | | | 20 | | |
In the second to fifth years
|
| | | | 22 | | | | | | 39 | | | | | | 42 | | |
Over five years
|
| | | | 43 | | | | | | 55 | | | | | | 52 | | |
Total
|
| | | | 78 | | | | | | 112 | | | | | | 114 | | |
US$m
|
| |
December 31, 2018
|
| |
December 31, 2019
|
| |
December 31, 2020
|
| |||||||||
Within one year
|
| | | | 251 | | | | | | 289 | | | | | | 293 | | |
In the second to fifth years
|
| | | | 1,009 | | | | | | 1,087 | | | | | | 1,033 | | |
Over five years
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 1,260 | | | | | | 1,376 | | | | | | 1,326 | | |
| | |
Place of
incorporation and operation |
| | | | |
As at December 31,
2018 |
| |
As at December 31,
2019 |
| |
As at December 31,
2020 |
| |||||||||||||||||||||||||||
Name of entity
|
| |
Principal
activity |
| |
Group’s
interest % |
| |
NCI’s
interest % |
| |
Group’s
interest % |
| |
NCI’s
interest % |
| |
Group’s
interest % |
| |
NCI’s
interest % |
| |||||||||||||||||||||
FWD Limited
|
| |
Cayman
Islands |
| |
Investment
holding |
| | | | 76% | | | | | | 24% | | | | | | 75% | | | | | | 25% | | | | | | 73% | | | | | | 27% | | |
FWD Group Limited
|
| |
Cayman
Islands |
| |
Investment
holding |
| | | | 76% | | | | | | 24% | | | | | | 75% | | | | | | 25% | | | | | | 73% | | | | | | 27% | | |
FWD Financial Services Pte
Limited |
| |
Singapore
|
| |
Investment
holding |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Group Financial Services
Pte. Ltd. |
| |
Singapore
|
| |
Investment
holding |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Group Management
Holdings Limited |
| |
Hong Kong
|
| |
Group
management |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Management Holdings
Limited |
| |
Hong Kong
|
| |
Investment
holding |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Life Insurance Company
(Bermuda) Limited |
| |
Bermuda/
Hong Kong |
| |
Life
insurance |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Life (Hong Kong)
Limited(1) |
| |
Hong Kong
|
| |
Life
insurance |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Life Assurance Company
(Hong Kong) Limited(2) |
| |
Hong Kong
|
| |
Life
insurance |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Life Insurance Company
(Macau) Limited |
| |
Macau
|
| |
Life
insurance |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Life Insurance Public
Company Limited(3) |
| |
Thailand
|
| |
Life
insurance |
| | | | 87% | | | | | | 13% | | | | | | 87% | | | | | | 13% | | | | | | 87% | | | | | | 13% | | |
SCB Life Assurance Public
Company Limited(3) |
| |
Thailand
|
| |
Life
insurance |
| | | | — | | | | | | — | | | | | | 86% | | | | | | 14% | | | | | | N/A | | | | | | N/A | | |
FWD Fuji Life Insurance
Company, Limited |
| |
Japan
|
| |
Life
insurance |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Reinsurance SPC, Ltd.
|
| |
Cayman
Islands |
| |
Life
reinsurance |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Life Insurance
Corporation |
| |
Philippines
|
| |
Life
insurance |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
PT FWD Insurance Indonesia(4)
|
| |
Indonesia
|
| |
Life
insurance |
| | | | 79% | | | | | | 21% | | | | | | 79% | | | | | | 21% | | | | | | 79% | | | | | | 21% | | |
FWD Singapore Pte. Ltd.
|
| |
Singapore
|
| |
Life and
general insurance |
| | | | 98% | | | | | | 2% | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Takaful Berhad
|
| |
Malaysia
|
| |
Life
Insurance |
| | | | — | | | | | | — | | | | | | 49% | | | | | | 51% | | | | | | 49% | | | | | | 51% | | |
FWD Vietnam Life Insurance
Company Limited |
| |
Vietnam
|
| |
Life
insurance |
| | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Assurance VietNam
Company Limited(5) |
| |
Vietnam
|
| |
Life
insurance |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100% | | | | | | — | | |
FWD Life Insurance
(Cambodia) Public Limited Company(6) |
| |
Cambodia
|
| |
Life
insurance |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100% | | | | | | — | | |
US$m
|
| |
Notes
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| ||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | | | | | | | — | | | | | | — | | | | | | 6 | | |
Other income
|
| | | | 3 | | | | | | — | | | | | | — | | | | | | 4 | | |
Total revenue
|
| | | | | | | | | | — | | | | | | — | | | | | | 10 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | |
General expenses
|
| | | | | | | | | | — | | | | | | — | | | | | | 1 | | |
Finance costs
|
| | | | | | | | | | — | | | | | | 2 | | | | | | 19 | | |
Total expenses
|
| | | | | | | | | | — | | | | | | 2 | | | | | | 20 | | |
Loss before tax
|
| | | | | | | | | | — | | | | | | (2) | | | | | | (10) | | |
Income tax
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | |
Net loss and total comprehensive loss for the year
|
| | | | | | | | | | — | | | | | | (2) | | | | | | (10) | | |
US$m
|
| |
Notes
|
| |
As at
December 31, 2018 |
| |
As at
December 31, 2019 |
| |
As at
December 31, 2020 |
| ||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment in subsidiaries
|
| | | | | | | | | | 480 | | | | | | 542 | | | | | | 3,713 | | |
Due from a related party
|
| | | | | | | | | | 1 | | | | | | — | | | | | | — | | |
Cash and cash equivalents
|
| | | | | | | | | | — | | | | | | 249 | | | | | | 316 | | |
Total assets
|
| | | | | | | | | | 481 | | | | | | 791 | | | | | | 4,029 | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan from a Financing entity
|
| | | | 2 | | | | | | — | | | | | | 251 | | | | | | — | | |
Due to a related party
|
| | | | | | | | | | — | | | | | | 60 | | | | | | — | | |
Other liabilities
|
| | | | | | | | | | — | | | | | | 1 | | | | | | 1 | | |
Total liabilities
|
| | | | | | | | | | — | | | | | | 312 | | | | | | 1 | | |
EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | |
Share capital and share premium
|
| | | | | | | | | | 480 | | | | | | 480 | | | | | | 4,045 | | |
Retained earnings/(Accumulated losses)
|
| | | | | | | | | | 1 | | | | | | (1) | | | | | | (17) | | |
Total equity
|
| | | | | | | | | | 481 | | | | | | 479 | | | | | | 4,028 | | |
Total liabilities and equity
|
| | | | | | | | | | 481 | | | | | | 791 | | | | | | 4,029 | | |
US$m
|
| |
Notes
|
| |
Year ended
December 31, 2018 |
| |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2020 |
| ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Loss before tax
|
| | | | | | | | | | — | | | | | | (2) | | | | | | (10) | | |
Adjustments for: | | | | | | | | | | | | | | | | | | | | | | | | | |
Increase in amount due to a related party
|
| | | | | | | | | | | | | | | | 61 | | | | | | 112 | | |
Non-cash operating items
|
| | | | | | | | | | — | | | | | | 1 | | | | | | 10 | | |
Operating cash items:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest received
|
| | | | | | | | | | — | | | | | | — | | | | | | 1 | | |
Interest paid
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | |
Net cash provided by operating activities
|
| | | | | | | | | | — | | | | | | 60 | | | | | | 113 | | |
CASH FLOWS FROM INVESTING ACTIVITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Subscription of note issued by a Financing entity
|
| | | | | | | | | | — | | | | | | — | | | | | | (137) | | |
Note interest received
|
| | | | | | | | | | — | | | | | | — | | | | | | 4 | | |
Proceeds used for capital injection and acquisition of additional interests in subsidiaries
|
| | | | | | | | | | — | | | | | | (60) | | | | | | (471) | | |
Proceeds from partial disposal of interest in a
subsidiary |
| | | | | | | | | | — | | | | | | — | | | | | | 123 | | |
Subscription of mandatory convertible securities issued by a subsidiary
|
| | | | | | | | | | — | | | | | | — | | | | | | (274) | | |
Net cash used in investing activities
|
| | | | | | | | | | — | | | | | | (60) | | | | | | (755) | | |
CASH FLOWS FROM FINANCING ACTIVITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Loan proceeds from a Financing entity
|
| | | | | | | | | | — | | | | | | 249 | | | | | | — | | |
Interest paid to a Financing entity
|
| | | | | | | | | | — | | | | | | — | | | | | | (14) | | |
Loan proceeds from PCGI Limited
|
| | | | | | | | | | — | | | | | | — | | | | | | 160 | | |
Cash and cash equivalents of PCGI Limited upon Merger
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | 563 | | |
Net cash provided by financing activities
|
| | | | | | | | | | — | | | | | | 249 | | | | | | 709 | | |
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | | | | | | | — | | | | | | 249 | | | | | | 67 | | |
Cash and cash equivalents at beginning of the
year |
| | | | | | | | | | — | | | | | | — | | | | | | 249 | | |
CASH AND CASH EQUIVALENTS AT END OF YEAR
|
| | | | | | | | | | — | | | | | | 249 | | | | | | 316 | | |
US$m
|
| |
Notes
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| |||||||||
| | | | | | | | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
REVENUE | | | | | | | | | | | | | | | | | | | |
Premiums and fee income
|
| | | | | | | | | | 4,165 | | | | | | 5,468 | | |
Premiums ceded to reinsurers
|
| | | | | | | | | | (601) | | | | | | (619) | | |
Net premiums and fee income
|
| | | | | | | | | | 3,564 | | | | | | 4,849 | | |
Investment return
|
| | | | 6 | | | | | | 260 | | | | | | 1,038 | | |
Other operating revenue
|
| | | | 6 | | | | | | 117 | | | | | | 134 | | |
Total revenue
|
| | | | | | | | | | 3,941 | | | | | | 6,021 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | |
Insurance and investment contract benefits
|
| | | | | | | | | | 3,507 | | | | | | 4,895 | | |
Insurance and investment contract benefits ceded
|
| | | | | | | | | | (348) | | | | | | (413) | | |
Net insurance and investment contract benefits
|
| | | | | | | | | | 3,159 | | | | | | 4,482 | | |
Commission and commission related expenses
|
| | | | | | | | | | 380 | | | | | | 597 | | |
General expenses
|
| | | | | | | | | | 562 | | | | | | 564 | | |
Finance costs
|
| | | | | | | | | | 106 | | | | | | 79 | | |
Other expenses
|
| | | | | | | | | | 55 | | | | | | 91 | | |
Total expenses
|
| | | | 7 | | | | | | 4,262 | | | | | | 5,813 | | |
Profit/(loss) before share of profit/(loss) from associates and a joint venture
|
| | | | | | | | | | (321) | | | | | | 208 | | |
Share of profit/(loss) from associates and a joint venture
|
| | | | | | | | | | 3 | | | | | | (2) | | |
Profit/(loss) before tax from continuing operations
|
| | | | | | | | | | (318) | | | | | | 206 | | |
Tax expense attributable to policyholders’ returns
|
| | | | | | | | | | (1) | | | | | | — | | |
Profit/(loss) from continuing operations before tax attributable to shareholders’ profits
|
| | | | | | | | | | (319) | | | | | | 206 | | |
Tax benefit/(expense) from continuing operations
|
| | | | 8 | | | | | | 1 | | | | | | (50) | | |
Tax expense attributable to policyholders’ returns
|
| | | | | | | | | | 1 | | | | | | — | | |
Tax benefit/(expense) attributable to shareholders’ profits
|
| | | | | | | | | | 2 | | | | | | (50) | | |
Profit/(loss) from continuing operations after tax
|
| | | | | | | | | | (317) | | | | | | 156 | | |
Profit/(loss) from discontinued operations, net of tax
|
| | | | 4 | | | | | | (1) | | | | | | 49 | | |
Net profit/(loss)
|
| | | | | | | | | | (318) | | | | | | 205 | | |
Profit/(loss) from continuing operations after tax attributable to: | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | | | | | | | (266) | | | | | | 93 | | |
Perpetual securities
|
| | | | | | | | | | 32 | | | | | | 32 | | |
Non-controlling interests
|
| | | | | | | | | | (83) | | | | | | 31 | | |
Net profit/(loss) attributable to: | | | | | | | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | | | | | | | (267) | | | | | | 128 | | |
Perpetual securities
|
| | | | | | | | | | 32 | | | | | | 32 | | |
Non-controlling interests
|
| | | | | | | | | | (83) | | | | | | 45 | | |
Earnings/(loss) per share from continuing operations (US$): | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 9 | | | | | | (0.46) | | | | | | 0.15 | | |
Diluted
|
| | | | 9 | | | | | | (0.46) | | | | | | 0.15 | | |
Earnings/(loss) per share (US$): | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 9 | | | | | | (0.46) | | | | | | 0.21 | | |
Diluted
|
| | | | 9 | | | | | | (0.46) | | | | | | 0.21 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Net profit/(loss)
|
| | | | (318) | | | | | | 205 | | |
OTHER COMPREHENSIVE INCOME | | | | | | | | | | | | | |
Items that may be reclassified subsequently to profit or loss | | | | | | | | | | | | | |
Fair value gains/(losses) on available for sale financial assets (net of tax of:
June 30, 2020 US$(33)m, June 30, 2021 US$234m) |
| | | | 344 | | | | | | (1,089) | | |
Fair value (gains)/losses on available for sale financial assets transferred to
income (net of tax of: June 30, 2020 US$6m, June 30, 2021 US$11m) |
| | | | (77) | | | | | | (60) | | |
Cash flow hedges
|
| | | | 3 | | | | | | (4) | | |
Foreign currency translation adjustments
|
| | | | (173) | | | | | | (315) | | |
Share of other comprehensive loss from associates and a joint venture
|
| | | | (8) | | | | | | (3) | | |
Total other comprehensive income/(loss)
|
| | | | 89 | | | | | | (1,471) | | |
Total comprehensive loss
|
| | | | (229) | | | | | | (1,266) | | |
Total comprehensive loss attributable to: | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | (198) | | | | | | (939) | | |
Perpetual securities
|
| | | | 32 | | | | | | 32 | | |
Non-controlling interests
|
| | | | (63) | | | | | | (359) | | |
US$m
|
| |
Notes
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| |||||||||
ASSETS
|
| | | | | | | | | | | | | |
(Unaudited)
|
| |||
Intangible assets
|
| | | | 10 | | | | | | 3,531 | | | | | | 3,383 | | |
Investments in associates and a joint venture
|
| | | | 11 | | | | | | 307 | | | | | | 571 | | |
Property, plant and equipment
|
| | | | 12 | | | | | | 194 | | | | | | 156 | | |
Investment property
|
| | | | 13 | | | | | | 609 | | | | | | 684 | | |
Reinsurance assets
|
| | | | | | | | | | 3,232 | | | | | | 3,317 | | |
Deferred acquisition costs
|
| | | | | | | | | | 4,591 | | | | | | 4,609 | | |
Financial investments
|
| | | | 14,16 | | | | | | | | | | | | | | |
Loans and deposits
|
| | | | | | | | | | 1,754 | | | | | | 1,686 | | |
Available for sale debt securities
|
| | | | | | | | | | 37,839 | | | | | | 36,283 | | |
At fair value through profit or loss
|
| | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | | | | | | | 129 | | | | | | 100 | | |
Equity securities
|
| | | | | | | | | | 5,740 | | | | | | 7,276 | | |
Derivative financial instruments
|
| | | | 15 | | | | | | 180 | | | | | | 148 | | |
| | | | | | | | | | | 45,642 | | | | | | 45,493 | | |
Deferred tax assets
|
| | | | | | | | | | 5 | | | | | | 8 | | |
Current tax recoverable
|
| | | | | | | | | | 24 | | | | | | 20 | | |
Other assets
|
| | | | 17 | | | | | | 1,285 | | | | | | 1,667 | | |
Cash and cash equivalents
|
| | | | 18 | | | | | | 2,730 | | | | | | 2,541 | | |
Assets classified as held-for-sale
|
| | | | 4 | | | | | | 400 | | | | | | 99 | | |
Total assets
|
| | | | | | | | | | 62,550 | | | | | | 62,548 | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | |
Insurance contract liabilities
|
| | | | 19 | | | | | | 45,181 | | | | | | 46,380 | | |
Investment contract liabilities
|
| | | | | | | | | | 300 | | | | | | 276 | | |
Deferred ceding commission
|
| | | | | | | | | | 990 | | | | | | 997 | | |
Borrowings
|
| | | | 20 | | | | | | 3,457 | | | | | | 3,463 | | |
Derivative financial instruments
|
| | | | 15 | | | | | | 214 | | | | | | 150 | | |
Provisions
|
| | | | | | | | | | 21 | | | | | | 21 | | |
Deferred tax liabilities
|
| | | | | | | | | | 578 | | | | | | 365 | | |
Current tax liabilities
|
| | | | | | | | | | 51 | | | | | | 5 | | |
Other liabilities
|
| | | | 21 | | | | | | 3,155 | | | | | | 2,887 | | |
Liabilities directly associated with assets classified as held-for-sale
|
| | | | 4 | | | | | | 378 | | | | | | 60 | | |
Total liabilities
|
| | | | | | | | | | 54,325 | | | | | | 54,604 | | |
US$m
|
| |
Notes
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| |||||||||
| | | | | | | | | | | | | | |
(Unaudited)
|
| |||
EQUITY | | | | | | | | | | | | | | | | | | | |
Share capital and share premium
|
| | | | 22 | | | | | | 4,045 | | | | | | 4,645 | | |
Other reserves
|
| | | | 22 | | | | | | 65 | | | | | | 66 | | |
Accumulated losses
|
| | | | | | | | | | (390) | | | | | | (212) | | |
Amounts reflected in other comprehensive income
|
| | | | | | | | | | 1,178 | | | | | | 111 | | |
Fair value reserve
|
| | | | 22 | | | | | | 1,004 | | | | | | 170 | | |
Cash flow hedge reserve
|
| | | | 22 | | | | | | (11) | | | | | | (14) | | |
Foreign currency translation reserve
|
| | | | 22 | | | | | | 178 | | | | | | (50) | | |
Share of other comprehensive income of associates and a joint venture
|
| | | | | | | | | | 7 | | | | | | 5 | | |
Total equity attributable to Shareholders of the Company
|
| | | | | | | | | | 4,898 | | | | | | 4,610 | | |
Perpetual securities
|
| | | | 22 | | | | | | 1,607 | | | | | | 1,607 | | |
Non-controlling interests
|
| | | | 22 | | | | | | 1,720 | | | | | | 1,727 | | |
Total equity
|
| | | | | | | | | | 8,225 | | | | | | 7,944 | | |
Total liabilities and equity
|
| | | | | | | | | | 62,550 | | | | | | 62,548 | | |
|
/s/ Ronald Arculli
Director
|
| |
/s/ Huynh Thanh Phong
Director
|
|
| | | | | | | | |
Attributable to Shareholders of the Company
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
US$m
|
| | | | | | | |
Share
Capital and share premium |
| |
Other
reserves |
| |
Accumulated
losses |
| |
Fair value
reserve |
| |
Cash flow
hedge reserve |
| |
Foreign
currency translation reserve |
| |
Share of other
comprehensive income/(loss) of associates and joint venture |
| |
Perpetual
securities |
| |
Non-
controlling interests |
| |
Total equity
|
| ||||||||||||||||||||||||||||||
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as at January 1,
2020 |
| | | | | | | | | | 2,329 | | | | | | 58 | | | | | | (305) | | | | | | 650 | | | | | | 6 | | | | | | 175 | | | | | | 5 | | | | | | 1,608 | | | | | | 1,004 | | | | | | 5,530 | | |
Net gains/(losses)
|
| | | | | | | | | | — | | | | | | — | | | | | | (267) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 32 | | | | | | (83) | | | | | | (318) | | |
Fair value gains on available for sale financial assets
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 261 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 83 | | | | | | 344 | | |
Fair value gains on
available for sale financial assets transferred to income on disposal |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (58) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19) | | | | | | (77) | | |
Foreign currency translation adjustments
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (130) | | | | | | — | | | | | | — | | | | | | (43) | | | | | | (173) | | |
Cash flow hedges
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 3 | | |
Share of other
comprehensive loss from associates and a joint venture |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6) | | | | | | — | | | | | | (2) | | | | | | (8) | | |
Total comprehensive
income/(loss) for the period |
| | | | | | | | | | — | | | | | | — | | | | | | (267) | | | | | | 203 | | | | | | 2 | | | | | | (130) | | | | | | (6) | | | | | | 32 | | | | | | (63) | | | | | | (229) | | |
Issuance of shares by subsidiaries
|
| | | | | | | | | | — | | | | | | (11) | | | | | | 4 | | | | | | (4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | — | | |
Distribution paid
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (32) | | | | | | — | | | | | | (32) | | |
Share-based compensation
|
| | | | 25 | | | | | | — | | | | | | 10 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3 | | | | | | 13 | | |
Acquisition of non-controlling interests
|
| | | | | | | | | | — | | | | | | 1 | | | | | | (84) | | | | | | 6 | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | (45) | | | | | | (120) | | |
Transfer to legal reserve
|
| | | | | | | | | | — | | | | | | (1) | | | | | | 1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Others
|
| | | | | | | | | | — | | | | | | — | | | | | | (5) | | | | | | — | | | | | | — | | | | | | 4 | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (2) | | |
Balance as at June 30, 2020
|
| | | | | | | | | | 2,329 | | | | | | 57 | | | | | | (656) | | | | | | 855 | | | | | | 8 | | | | | | 51 | | | | | | (1) | | | | | | 1,607 | | | | | | 910 | | | | | | 5,160 | | |
| | | | | | | | |
Attributable to Shareholders of the Company
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
US$m
|
| | | | | | | |
Share
Capital and share premium |
| |
Other
reserves |
| |
Accumulated
losses |
| |
Fair value
reserve |
| |
Cash flow
hedge reserve |
| |
Foreign
currency translation reserve |
| |
Share of other
comprehensive income/(loss) of associates and joint venture |
| |
Perpetual
securities |
| |
Non-
controlling interests |
| |
Total equity
|
| ||||||||||||||||||||||||||||||
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as at January 1,
2021 |
| | | | | | | | | | 4,045 | | | | | | 65 | | | | | | (390) | | | | | | 1,004 | | | | | | (11) | | | | | | 178 | | | | | | 7 | | | | | | 1,607 | | | | | | 1,720 | | | | | | 8,225 | | |
Net gains
|
| | | | | | | | | | — | | | | | | — | | | | | | 128 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 32 | | | | | | 45 | | | | | | 205 | | |
Fair value losses on available for sale financial assets
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (790) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (299) | | | | | | (1,089) | | |
Fair value gains on
available for sale financial assets transferred to income on disposal |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (43) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (17) | | | | | | (60) | | |
Foreign currency translation adjustments
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (229) | | | | | | — | | | | | | — | | | | | | (86) | | | | | | (315) | | |
Cash flow hedges
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | (4) | | |
Share of other
comprehensive loss from associates and a joint venture |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | | | | | (1) | | | | | | (3) | | |
Total comprehensive
income/(loss) for the period |
| | | | | | | | | | — | | | | | | — | | | | | | 128 | | | | | | (833) | | | | | | (3) | | | | | | (229) | | | | | | (2) | | | | | | 32 | | | | | | (359) | | | | | | (1,266) | | |
Issuance of shares
|
| | | | 22 | | | | | | 600 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 600 | | |
Issuance of shares by subsidiaries
|
| | | | | | | | | | — | | | | | | (10) | | | | | | 2 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8 | | | | | | — | | |
Distribution paid
|
| | | | 22 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (32) | | | | | | — | | | | | | (32) | | |
Share-based compensation
|
| | | | 25 | | | | | | — | | | | | | 11 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4 | | | | | | 15 | | |
Acquisition of non-controlling interests
|
| | | | 22 | | | | | | — | | | | | | 3 | | | | | | (207) | | | | | | 4 | | | | | | (4) | | | | | | — | | | | | | — | | | | | | — | | | | | | 204 | | | | | | — | | |
Transactions with non-controlling interests
|
| | | | 22 | | | | | | — | | | | | | (3) | | | | | | 256 | | | | | | (5) | | | | | | 4 | | | | | | — | | | | | | — | | | | | | — | | | | | | 148 | | | | | | 400 | | |
Others
|
| | | | | | | | | | — | | | | | | — | | | | | | (1) | | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 2 | | |
Balance as at June 30, 2021
|
| | | | | | | | | | 4,645 | | | | | | 66 | | | | | | (212) | | | | | | 170 | | | | | | (14) | | | | | | (50) | | | | | | 5 | | | | | | 1,607 | | | | | | 1,727 | | | | | | 7,944 | | |
US$m
|
| |
Notes
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| |||||||||
| | | | | | | | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | | | | | | | |
Profit/(Loss) before tax: | | | | | | | | | | | | | | | | | | | |
From continuing operations
|
| | | | | | | | | | (318) | | | | | | 206 | | |
From discontinued operations
|
| | | | 4 | | | | | | — | | | | | | 50 | | |
Adjustments for: | | | | | | | | | | | | | | | | | | | |
Financial investments
|
| | | | | | | | | | (1,832) | | | | | | (1,656) | | |
Insurance and investment contract liabilities, and deferred acquisition and origination costs
|
| | | | | | | | | | 1,617 | | | | | | 1,132 | | |
Other non-cash operating items, including investment income and the effect of exchange rate changes on certain operating items
|
| | | | | | | | | | 410 | | | | | | (519) | | |
Operating cash items:
|
| | | | | | | | | | | | | | | | | | |
Dividend received
|
| | | | | | | | | | 49 | | | | | | 126 | | |
Interest received
|
| | | | | | | | | | 515 | | | | | | 574 | | |
Interest paid
|
| | | | | | | | | | (1) | | | | | | — | | |
Income tax paid
|
| | | | | | | | | | (12) | | | | | | (45) | | |
Net cash provided by/(used in) operating activities
|
| | | | | | | | | | 428 | | | | | | (132) | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | | | | | | | |
Acquisition of subsidiaries and distribution agreements, net of cash acquired
|
| | | | | | | | | | (909) | | | | | | (120) | | |
Acquisition of interest in an associate
|
| | | | 11 | | | | | | — | | | | | | (273) | | |
Dividend from a joint venture
|
| | | | | | | | | | 4 | | | | | | 2 | | |
Payments for intangible assets
|
| | | | | | | | | | (24) | | | | | | (17) | | |
Payments for investment properties
|
| | | | | | | | | | (45) | | | | | | (114) | | |
Payments for property, plant and equipment
|
| | | | | | | | | | (10) | | | | | | (4) | | |
Proceeds from disposal of subsidiaries, net of cash disposed
|
| | | | | | | | | | — | | | | | | 9 | | |
Proceeds from disposal of a business
|
| | | | | | | | | | — | | | | | | 10 | | |
Proceeds from disposals of intangible assets
|
| | | | | | | | | | 382 | | | | | | 233 | | |
Proceeds from disposals of property, plant and equipment
|
| | | | | | | | | | 1 | | | | | | — | | |
Restricted cash for acquisitions
|
| | | | | | | | | | 58 | | | | | | — | | |
Net cash used in investing activities
|
| | | | | | | | | | (543) | | | | | | (274) | | |
US$m
|
| |
Notes
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| |||||||||
| | | | | | | | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | | | | | | | |
Issuance of ordinary shares
|
| | | | 22.1 | | | | | | — | | | | | | 600 | | |
Restricted cash
|
| | | | 17 | | | | | | 71 | | | | | | (596) | | |
Proceeds from bank borrowings
|
| | | | | | | | | | 643 | | | | | | — | | |
Proceeds from mandatory convertible securities
|
| | | | | | | | | | 176 | | | | | | — | | |
Distributions paid on perpetual securities
|
| | | | | | | | | | (32) | | | | | | (32) | | |
Acquisition of non-controlling interests
|
| | | | | | | | | | (120) | | | | | | — | | |
Transaction with non-controlling interests
|
| | | | 22.5 | | | | | | — | | | | | | 400 | | |
Principal portion of lease payments
|
| | | | | | | | | | (22) | | | | | | (27) | | |
Finance costs paid on lease liabilities
|
| | | | | | | | | | (3) | | | | | | (3) | | |
Finance costs paid on borrowings
|
| | | | | | | | | | (84) | | | | | | (56) | | |
Finance costs paid on distribution agreement payable
|
| | | | 21 | | | | | | — | | | | | | (8) | | |
Payment for listing related expenses
|
| | | | | | | | | | — | | | | | | (2) | | |
Net cash provided by financing activities
|
| | | | | | | | | | 629 | | | | | | 276 | | |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
|
| | | | | | | | | | 514 | | | | | | (130) | | |
Cash and cash equivalents at beginning of the period
|
| | | | | | | | | | 1,911 | | | | | | 2,730 | | |
Effect of exchange rate changes on cash and cash equivalents
|
| | | | | | | | | | (21) | | | | | | (57) | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
| | | | | | | | | | 2,404 | | | | | | 2,543 | | |
Included in cash and cash equivalents per the interim condensed consolidated statements of financial position
|
| | | | 18 | | | | | | 2,364 | | | | | | 2,541 | | |
Included in the assets classified as held-for-sale
|
| | | | | | | | | | 40 | | | | | | 2 | | |
| | |
US dollar exchange rate
|
| |||||||||
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Hong Kong
|
| | | | 7.76 | | | | | | 7.76 | | |
Japan
|
| | | | 108.24 | | | | | | 107.71 | | |
Thailand
|
| | | | 31.63 | | | | | | 30.81 | | |
| | |
US dollar exchange rate
|
| |||||||||
| | |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Hong Kong
|
| | | | 7.75 | | | | | | 7.77 | | |
Japan
|
| | | | 103.11 | | | | | | 110.53 | | |
Thailand
|
| | | | 29.95 | | | | | | 32.03 | | |
US$m
|
| |
Six months ended June 30, 2020
|
| |
From January 1 to February 1, 2021
|
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Profit for the period – fees and commission income
|
| | | | 1 | | | | | | — | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
February 1, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Total Assets(1)
|
| | | | 375 | | | | | | 376 | | |
Total Liabilities(2)
|
| | | | 375 | | | | | | 376 | | |
Net Assets
|
| | | | — | | | | | | — | | |
US$’m
|
| |
Six months ended
June 30, 2020 |
| |
For the period from
January 1 to February 3, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Net premiums and fee income
|
| | | | 22 | | | | | | — | | |
Investment return
|
| | | | — | | | | | | — | | |
Other operating revenue
|
| | | | 1 | | | | | | — | | |
Total revenue
|
| | | | 23 | | | | | | — | | |
Net insurance and investment contract benefits
|
| | | | (7) | | | | | | — | | |
Commission and commission related expenses
|
| | | | (9) | | | | | | — | | |
Other operating expenses
|
| | | | (8) | | | | | | (1) | | |
Total expenses
|
| | | | (24) | | | | | | (1) | | |
Loss before tax
|
| | | | (1) | | | | | | (1) | | |
Tax expense
|
| | | | (1) | | | | | | — | | |
Loss for the period
|
| | | | (2) | | | | | | (1) | | |
Net cash inflow/(outflow) from operating activities
|
| | | | 14 | | | | | | (1) | | |
Net cash outflow from investing activities
|
| | | | (3) | | | | | | (1) | | |
Net cash inflow from financing activities
|
| | | | 14 | | | | | | 1 | | |
Net increase/ (decrease) in cash generated by the disposed subsidiaries
|
| | | | 25 | | | | | | (1) | | |
US$’m
|
| |
As at
December 31, 2020 |
| |
As at
February 3, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Assets | | | | | | | | | | | | | |
Other assets
|
| | | | 15 | | | | | | 14 | | |
Cash and cash equivalents
|
| | | | 10 | | | | | | 9 | | |
Total Assets
|
| | | | 25 | | | | | | 23 | | |
Liabilities | | | | | | | | | | | | | |
Other liabilities
|
| | | | (3) | | | | | | (17) | | |
Total Liabilities
|
| | | | (3) | | | | | | (17) | | |
Net assets
|
| | | | 22 | | | | | | 6 | | |
Amounts included in accumulated other comprehensive income: | | | | | | | | | | | | | |
Fair value reserve
|
| | | | — | | | | | | — | | |
Foreign currency translation reserve
|
| | | | 1 | | | | | | 1 | | |
US$’m
|
| |
As at
February 3, 2021 |
| |||
| | |
(Unaudited)
|
| |||
Cash consideration
|
| | | | 32 | | |
Settlement of the Group’s loans to the GI Disposal Group
|
| | | | (14) | | |
Cash and cash equivalents disposed of
|
| | | | (9) | | |
Net cash inflows in respect of the disposed GI subsidiaries
|
| | | | 9 | | |
US$’m
|
| |
As at
June 30, 2021 |
| |||
| | |
(Unaudited)
|
| |||
Assets | | | | | | | |
Deferred acquisition costs
|
| | | | 2 | | |
Loans and deposits
|
| | | | 65 | | |
Available for sale financial assets
|
| | | | 22 | | |
Other assets
|
| | | | 8 | | |
Cash and cash equivalents
|
| | | | 2 | | |
Total Assets
|
| | | | 99 | | |
Liabilities | | | | | | | |
Insurance contract liabilities
|
| | | | (57) | | |
Deferred tax liabilities
|
| | | | (1) | | |
Other liabilities
|
| | | | (2) | | |
Total Liabilities
|
| | | | (60) | | |
Net assets
|
| | | | 39 | | |
Amounts included in accumulated other comprehensive income: | | | | | | | |
Fair value reserve
|
| | | | (2) | | |
Foreign currency translation reserve
|
| | | | (1) | | |
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Six months ended June 30, 2020 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TWPI(2)
|
| | | | 767 | | | | | | 1,190 | | | | | | 1,141 | | | | | | 168 | | | | | | — | | | | | | 3,266 | | |
Premiums and fee income
|
| | | | 1,085 | | | | | | 1,329 | | | | | | 1,515 | | | | | | 225 | | | | | | — | | | | | | 4,154 | | |
Premiums ceded to reinsurers
|
| | | | (154) | | | | | | (15) | | | | | | (411) | | | | | | (13) | | | | | | — | | | | | | (593) | | |
Other operating revenue
|
| | | | 38 | | | | | | 5 | | | | | | 57 | | | | | | 5 | | | | | | 7 | | | | | | 112 | | |
Net premiums, fee income and other operating revenue (net of reinsurance ceded)
|
| | | | 969 | | | | | | 1,319 | | | | | | 1,161 | | | | | | 217 | | | | | | 7 | | | | | | 3,673 | | |
Investment return
|
| | | | 224 | | | | | | 177 | | | | | | 57 | | | | | | (39) | | | | | | 3 | | | | | | 422 | | |
Total revenue(1)
|
| | | | 1,193 | | | | | | 1,496 | | | | | | 1,218 | | | | | | 178 | | | | | | 10 | | | | | | 4,095 | | |
Net insurance and investment contract benefits
|
| | | | 890 | | | | | | 1,239 | | | | | | 900 | | | | | | 131 | | | | | | — | | | | | | 3,160 | | |
Commission and commission related expenses
|
| | | | 156 | | | | | | 96 | | | | | | 119 | | | | | | 8 | | | | | | — | | | | | | 379 | | |
Operating expenses
|
| | | | 82 | | | | | | 106 | | | | | | 138 | | | | | | 78 | | | | | | 57 | | | | | | 461 | | |
Finance costs and other expenses
|
| | | | 11 | | | | | | 12 | | | | | | 7 | | | | | | 2 | | | | | | (2) | | | | | | 30 | | |
Total expenses(1)
|
| | | | 1,139 | | | | | | 1,453 | | | | | | 1,164 | | | | | | 219 | | | | | | 55 | | | | | | 4,030 | | |
Share of profit from associates and a joint
venture |
| | | | 4 | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | 3 | | |
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Adjusted operating profit/(loss) before tax from continuing operations
|
| | | | 58 | | | | | | 43 | | | | | | 54 | | | | | | (41) | | | | | | (46) | | | | | | 68 | | |
Adjusted operating profit/(loss) before tax attributable to:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | 58 | | | | | | 43 | | | | | | 54 | | | | | | (39) | | | | | | (46) | | | | | | 70 | | |
Non-controlling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | | | | | (2) | | |
Key operating ratio: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expense ratio(2)
|
| | | | 10.7% | | | | | | 8.9% | | | | | | 12.1% | | | | | | 42.6% | | | | | | —% | | | | | | 13.9% | | |
Adjusted operating profit/(loss) before tax includes:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance costs
|
| | | | 1 | | | | | | 1 | | | | | | 2 | | | | | | 2 | | | | | | — | | | | | | 6 | | |
Depreciation and amortization
|
| | | | 14 | | | | | | 16 | | | | | | 21 | | | | | | 11 | | | | | | 5 | | | | | | 67 | | |
|
US$m
|
| |
Hong Kong(2)
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Adjusted
Financial Position |
| ||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | | 22,669 | | | | | | 22,475 | | | | | | 12,970 | | | | | | 3,409 | | | | | | 1,027 | | | | | | 62,550 | | |
Total liabilities
|
| | | | 18,500 | | | | | | 17,751 | | | | | | 12,321 | | | | | | 2,227 | | | | | | 3,526 | | | | | | 54,325 | | |
Total equity
|
| | | | 4,169 | | | | | | 4,724 | | | | | | 649 | | | | | | 1,182 | | | | | | (2,499) | | | | | | 8,225 | | |
Shareholders’ allocated equity
|
| | | | 3,408 | | | | | | 4,269 | | | | | | 500 | | | | | | 1,153 | | | | | | (4,099) | | | | | | 5,231 | | |
Net capital inflows(1)
|
| | | | 406 | | | | | | 27 | | | | | | 36 | | | | | | 640 | | | | | | 1,234 | | | | | | 2,343 | | |
Total assets include: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment in associates and a joint venture
|
| | | | 244 | | | | | | — | | | | | | — | | | | | | 18 | | | | | | 45 | | | | | | 307 | | |
US$m
|
| |
Segment
information |
| |
Short-term
fluctuations in investment return related to equities and property investments and other non-operating investment return |
| |
Other
non- operating items |
| |
Operating
Group Total |
| | | | | ||||||||||||||
Six months ended June 30, 2020 (Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Net premiums, fee income and other operating revenue
|
| | | | 3,673 | | | | | | — | | | | | | 8 | | | | | | 3,681 | | | |
|
| | Net premiums, fee income and other operating revenue | |
Investment return
|
| | | | 422 | | | | | | (164) | | | | | | — | | | | | | 258 | | | |
|
| | Investment return | |
Total revenue
|
| | | | 4,095 | | | | | | (164) | | | | | | 8 | | | | | | 3,939 | | | |
|
| | Total revenue | |
Net insurance and investment contract
benefits |
| | | | 3,160 | | | | | | (3) | | | | | | 2 | | | | | | 3,159 | | | |
|
| | Net insurance and investment contract benefits | |
Finance costs and other expenses
|
| | | | 870 | | | | | | — | | | | | | 216 | | | | | | 1,086 | | | |
|
| |
Finance costs and other expenses
|
|
Total expenses
|
| | | | 4,030 | | | | | | (3) | | | | | | 218 | | | | | | 4,245 | | | |
|
| | Total expenses | |
Share of profit from associates and a joint venture
|
| | | | 3 | | | | | | — | | | | | | — | | | | | | 3 | | | |
|
| | Share of profit from associates and a joint venture | |
Adjusted operating profit before tax
|
| | | | 68 | | | | | | (161) | | | | | | (210) | | | | | | (303) | | | |
|
| | Adjusted Loss before tax from continuing operations of the Operating Group | |
| | | | | | | | | | | | | | | | | | | | | | | 1 | | | |
|
| | Tax benefit from continuing operations | |
| | | | | | | | | | | | | | | | | | | | | | | (302) | | | |
|
| |
Adjusted net loss from continuing
operations of the Operating Group after tax |
|
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Six months ended June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TWPI(2)
|
| | | | 950 | | | | | | 1,248 | | | | | | 1,174 | | | | | | 285 | | | | | | — | | | | | | 3,657 | | |
Premiums and fee income
|
| | | | 1,965 | | | | | | 1,429 | | | | | | 1,603 | | | | | | 462 | | | | | | — | | | | | | 5,459 | | |
Premiums ceded to reinsurers
|
| | | | (103) | | | | | | (18) | | | | | | (468) | | | | | | (23) | | | | | | — | | | | | | (612) | | |
Other operating revenue
|
| | | | 36 | | | | | | 6 | | | | | | 79 | | | | | | 9 | | | | | | (2) | | | | | | 128 | | |
Net premiums, fee income and other operating revenue (net of reinsurance ceded)
|
| | | | 1,898 | | | | | | 1,417 | | | | | | 1,214 | | | | | | 448 | | | | | | (2) | | | | | | 4,975 | | |
Investment return
|
| | | | 340 | | | | | | 252 | | | | | | 50 | | | | | | 7 | | | | | | (11) | | | | | | 638 | | |
Total revenue(1)
|
| | | | 2,238 | | | | | | 1,669 | | | | | | 1,264 | | | | | | 455 | | | | | | (13) | | | | | | 5,613 | | |
Net insurance and investment contract benefits
|
| | | | 1,753 | | | | | | 1,352 | | | | | | 915 | | | | | | 373 | | | | | | — | | | | | | 4,393 | | |
Commission and commission related expenses
|
| | | | 295 | | | | | | 135 | | | | | | 152 | | | | | | 13 | | | | | | — | | | | | | 595 | | |
Operating expenses
|
| | | | 100 | | | | | | 108 | | | | | | 115 | | | | | | 114 | | | | | | 44 | | | | | | 481 | | |
Finance costs and other expenses
|
| | | | 11 | | | | | | 10 | | | | | | 13 | | | | | | 2 | | | | | | — | | | | | | 36 | | |
Total expenses(1)
|
| | | | 2,159 | | | | | | 1,605 | | | | | | 1,195 | | | | | | 502 | | | | | | 44 | | | | | | 5,505 | | |
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Total
|
| ||||||||||||||||||
Share of profit/(loss) from associates and a joint venture
|
| | | | 6 | | | | | | — | | | | | | — | | | | | | (5) | | | | | | (3) | | | | | | (2) | | |
Adjusted operating profit/(loss) before tax from continuing operations
|
| | | | 85 | | | | | | 64 | | | | | | 69 | | | | | | (52) | | | | | | (60) | | | | | | 106 | | |
Adjusted operating profit/(loss) before tax attributable to:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | 85 | | | | | | 64 | | | | | | 69 | | | | | | (51) | | | | | | (60) | | | | | | 107 | | |
Non-controlling interests
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | — | | | | | | (1) | | |
Key operating ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expense ratio(2)
|
| | | | 10.6% | | | | | | 8.6% | | | | | | 9.8% | | | | | | 36.9% | | | | | | — | | | | | | 12.9% | | |
Adjusted operating profit/(loss) before tax includes:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance costs
|
| | | | 1 | | | | | | 1 | | | | | | 2 | | | | | | 2 | | | | | | — | | | | | | 6 | | |
Depreciation and amortization
|
| | | | 17 | | | | | | 23 | | | | | | 12 | | | | | | 14 | | | | | | 6 | | | | | | 72 | | |
|
US$m
|
| |
Hong Kong
|
| |
Thailand
|
| |
Japan
|
| |
Emerging
Markets |
| |
Corporate
and Others |
| |
Adjusted
Financial Position |
| ||||||||||||||||||
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets
|
| | | | 23,368 | | | | | | 20,736 | | | | | | 13,007 | | | | | | 3,950 | | | | | | 1,487 | | | | | | 62,548 | | |
Total liabilities
|
| | | | 19,469 | | | | | | 16,913 | | | | | | 12,379 | | | | | | 2,446 | | | | | | 3,397 | | | | | | 54,604 | | |
Total equity
|
| | | | 3,899 | | | | | | 3,823 | | | | | | 628 | | | | | | 1,504 | | | | | | (1,910) | | | | | | 7,944 | | |
Shareholders’ allocated equity
|
| | | | 3,557 | | | | | | 4,021 | | | | | | 546 | | | | | | 1,493 | | | | | | (3,517) | | | | | | 6,100 | | |
Net capital (out)/in flows(1)
|
| | | | (63) | | | | | | 10 | | | | | | (31) | | | | | | 418 | | | | | | 634 | | | | | | 968 | | |
Total assets include: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment in associates and a joint venture
|
| | | | 240 | | | | | | — | | | | | | — | | | | | | 288 | | | | | | 43 | | | | | | 571 | | |
US$m
|
| |
Segment
information |
| |
Short-term
fluctuations in investment return related to equities and property investments and other non-operating investment return |
| |
Other
non- operating items |
| |
Operating
Group Total |
| | | | | ||||||||||||||
Six months ended June 30, 2021 (Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Net premiums, fee income and other operating revenue
|
| | | | 4,975 | | | | | | — | | | | | | 8 | | | | | | 4,983 | | | |
|
| | Net premiums, fee income and other operating revenue | |
Investment return
|
| | | | 638 | | | | | | 221 | | | | | | 179 | | | | | | 1,038 | | | |
|
| | Investment return | |
Total revenue
|
| | | | 5,613 | | | | | | 221 | | | | | | 187 | | | | | | 6,021 | | | |
|
| | Total revenue | |
Net insurance and investment contract
benefits |
| | | | 4,393 | | | | | | — | | | | | | 89 | | | | | | 4,482 | | | |
|
| | Net insurance and investment contract benefits | |
Finance costs and other expenses
|
| | | | 1,112 | | | | | | — | | | | | | 219 | | | | | | 1,331 | | | |
|
| |
Finance costs and other expenses
|
|
Total expenses
|
| | | | 5,505 | | | | | | — | | | | | | 308 | | | | | | 5,813 | | | |
|
| | Total expenses | |
Share of loss from associates and a joint venture
|
| | | | (2) | | | | | | — | | | | | | — | | | | | | (2) | | | |
|
| |
Share of loss from associates and
a joint venture |
|
Adjusted operating profit before tax
|
| | | | 106 | | | | | | 221 | | | | | | (121) | | | | | | 206 | | | |
|
| | Adjusted profit before tax from continuing operations of the Operating Group | |
| | | | | | | | | | | | | | | | | | | | | | | (50) | | | |
|
| | Tax expense from continuing operations | |
| | | | | | | | | | | | | | | | | | | | | | | 156 | | | |
|
| | Adjusted net profit from continuing operations of the Operating Group after tax | |
US$m
|
| |
Notes
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| |||||||||
| | | | | | | | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Adjusted net profit/(loss) of the Operating Group from continuing operations after tax
|
| | | | 5.3 | | | | |
|
(302)
|
| | | |
|
156
|
| |
Tax on adjusted operating profit before tax
|
| | | | | | | | | | 16 | | | | | | 30 | | |
Tax impact from non-operating items
|
| | | | | | | | | | (17) | | | | | | 20 | | |
Adjusted profit/(loss) of the Operating Group before tax from continuing operations
|
| | | | | | | | | | (303) | | | | | | 206 | | |
Non-operating items, net of related changes in insurance and
investment contract liabilities: |
| | | | | | | | | | | | | | | | | | |
Short-term fluctuations in investment return related to equities and property investments
|
| | | | | | | | | | 211 | | | | | | (255) | | |
Other non-operating investment return
|
| | | | | | | | | | (50) | | | | | | 34 | | |
US$m
|
| |
Notes
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| |||||||||
| | | | | | | | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Finance costs related to borrowings and long-term payables
|
| | | | | | | | | | 85 | | | | | | 73 | | |
Amortization of value of business acquired
|
| | | | | | | | | | 25 | | | | | | 58 | | |
M&A, business set up and restructuring related costs
|
| | | | | | | | | | 50 | | | | | | 41 | | |
IPO related costs including incentive costs
|
| | | | | | | | | | 24 | | | | | | 24 | | |
Implementation costs for significant new accounting standards such as IFRS 9 and 17 and other mandatory regulatory changes such as Group-wide Supervision
|
| | | | | | | | | | 14 | | | | | | 15 | | |
Other non-operating items
|
| | | | | | | | | | 12 | | | | | | (90) | | |
Adjusted operating profit before tax
|
| | | | 5.1 | | | | |
|
68
|
| | | |
|
106
|
| |
Tax on adjusted operating profit before tax
|
| | | | | | | | | | (16) | | | | | | (30) | | |
Adjusted operating profit after tax
|
| | | | | | | | | | 52 | | | | | | 76 | | |
Adjusted operating profit before tax attributable to: | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | | | | | | | 70 | | | | | | 107 | | |
Non-controlling interests
|
| | | | | | | | | | (2) | | | | | | (1) | | |
Adjusted operating profit after tax attributable to: | | | | | | | | | | | | | | | | | | | |
Equity holders of FL and FGL
|
| | | | | | | | | | 55 | | | | | | 77 | | |
Non-controlling interests
|
| | | | | | | | | | (3) | | | | | | (1) | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Profit/(loss) of the Group from continuing operations after tax
|
| | | | (317) | | | | | | 156 | | |
Less: | | | | | | | | | | | | | |
Net loss of the Company and Financing Entities(1)
|
| | | | 15 | | | | | | — | | |
Adjusted profit/(loss) of the Operating Group from continuing operations after tax
|
| | | | (302) | | | | | | 156 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Attributable to: | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | (330) | | | | | | 128 | | |
Perpetual securities
|
| | | | 32 | | | | | | 32 | | |
Non-controlling interests
|
| | | | (4) | | | | | | (4) | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Net profit/(loss) of the Group
|
| | | | (318) | | | | | | 205 | | |
Less: | | | | | | | | | | | | | |
Net loss of the Company and Financing Entities(1)
|
| | | | 15 | | | | | | — | | |
Adjusted net profit/(loss) of the Operating Group
|
| | | | (303) | | | | | | 205 | | |
Attributable to: | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | (331) | | | | | | 177 | | |
Perpetual securities
|
| | | | 32 | | | | | | 32 | | |
Non-controlling interests
|
| | | | (4) | | | | | | (4) | | |
US$m
|
| |
Notes
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| |||||||||
| | | | | | | | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Finance costs, principally related to leases, included in adjusted operating profit
|
| | | | 5.1 | | | | | | 6 | | | | | | 6 | | |
Finance costs related to borrowings and long-term payables
|
| | | | 5.2 | | | | | | 85 | | | | | | 73 | | |
Finance costs of the Company and Financing Entities
|
| | | | | | | | | | 15 | | | | | | — | | |
Total | | | | | | | | | | | 106 | | | | | | 79 | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Total equity of the Group attributable to: | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | 4,898 | | | | | | 4,610 | | |
Perpetual securities
|
| | | | 1,607 | | | | | | 1,607 | | |
Non-controlling interests
|
| | | | 1,720 | | | | | | 1,727 | | |
Total equity of the Group
|
| | | | 8,225 | | | | | | 7,944 | | |
Add: | | | | | | | | | | | | | |
Share capital and share premium
|
| | | | 1,713 | | | | | | 1,726 | | |
Less: | | | | | | | | | | | | | |
Non-controlling interests
|
| | | | (1,713) | | | | | | (1,726) | | |
Adjusted total equity of the Operating Group attributable to: | | | | | | | | | | | | | |
Shareholders of the Company
|
| | | | 6,611 | | | | | | 6,336 | | |
Perpetual securities
|
| | | | 1,607 | | | | | | 1,607 | | |
Non-controlling interests
|
| | | | 7 | | | | | | 1 | | |
Adjusted total equity of the Operating Group
|
| | | | 8,225 | | | | | | 7,944 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
TWPI by geography | | | | | | | | | | | | | |
Hong Kong
|
| | | | 767 | | | | | | 950 | | |
Thailand
|
| | | | 1,190 | | | | | | 1,248 | | |
Japan
|
| | | | 1,141 | | | | | | 1,174 | | |
Emerging Markets
|
| | | | 168 | | | | | | 285 | | |
Total | | | | | 3,266 | | | | | | 3,657 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
First year premiums by geography | | | | | | | | | | | | | |
Hong Kong
|
| | | | 141 | | | | | | 145 | | |
Thailand
|
| | | | 333 | | | | | | 304 | | |
Japan
|
| | | | 275 | | | | | | 123 | | |
Emerging Markets
|
| | | | 62 | | | | | | 94 | | |
Total | | | | | 811 | | | | | | 666 | | |
Single premiums by geography | | | | | | | | | | | | | |
Hong Kong
|
| | | | 302 | | | | | | 1,083 | | |
Thailand
|
| | | | 148 | | | | | | 198 | | |
Japan
|
| | | | — | | | | | | — | | |
Emerging Markets
|
| | | | 55 | | | | | | 150 | | |
Total | | | | | 505 | | | | | | 1,431 | | |
Renewal Premiums by geography | | | | | | | | | | | | | |
Hong Kong
|
| | | | 596 | | | | | | 697 | | |
Thailand
|
| | | | 842 | | | | | | 924 | | |
Japan
|
| | | | 866 | | | | | | 1,051 | | |
Emerging Markets
|
| | | | 100 | | | | | | 176 | | |
Total | | | | | 2,404 | | | | | | 2,848 | | |
|
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
TWPI
|
| | | | 3,266 | | | | | | 3,657 | | |
90% of Single premium
|
| | | | 455 | | | | | | 1,287 | | |
Premium not included in TWPI(1)
|
| | | | 402 | | | | | | 468 | | |
Gross written premium
|
| | | | 4,123 | | | | | | 5,412 | | |
Fee Income and change in unearned premium
|
| | | | 42 | | | | | | 56 | | |
Premiums and fee income
|
| | | | 4,165 | | | | | | 5,468 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Interest income
|
| | | | 402 | | | | | | 465 | | |
Dividend income
|
| | | | 48 | | | | | | 128 | | |
Rental income(1)
|
| | | | 12 | | | | | | 13 | | |
Investment income
|
| | | | 462 | | | | | | 606 | | |
Available for Sale | | | | | | | | | | | | | |
Net realized gains from debt securities
|
| | | | 87 | | | | | | 68 | | |
Impairment of available-for-sale financial assets
|
| | | | (4) | | | | | | — | | |
Net gains of available-for-sale financial assets reflected in the interim condensed consolidated income statements
|
| | | | 83 | | | | | | 68 | | |
At fair value through profit or loss | | | | | | | | | | | | | |
Net losses of debt securities
|
| | | | (46) | | | | | | (2) | | |
Net gains/(losses) of equity securities
|
| | | | (194) | | | | | | 471 | | |
Net fair value movement on derivatives
|
| | | | 45 | | | | | | (403) | | |
Net gains/(losses) in respect of financial instruments at fair value through profit or loss
|
| | | | (195) | | | | | | 66 | | |
Net fair value movement of investment property
|
| | | | (7) | | | | | | — | | |
Net foreign exchange gains/(losses)
|
| | | | (84) | | | | | | 296 | | |
Other net realized gains
|
| | | | 1 | | | | | | 2 | | |
Investment experience
|
| | | | (202) | | | | | | 432 | | |
Investment return
|
| | | | 260 | | | | | | 1,038 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Foreign exchange gains
|
| | | | 63 | | | | | | 288 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Insurance contract benefits
|
| | | | 1,502 | | | | | | 1,812 | | |
Change in insurance contract liabilities
|
| | | | 1,993 | | | | | | 3,073 | | |
Investment contract benefits
|
| | | | 12 | | | | | | 10 | | |
Insurance and investment contract benefits
|
| | | | 3,507 | | | | | | 4,895 | | |
Insurance and investment contract benefits ceded
|
| | | | (348) | | | | | | (413) | | |
Insurance and investment contract benefits, net of reinsurance ceded
|
| | | | 3,159 | | | | | | 4,482 | | |
Commission and other acquisition expenses incurred
|
| | | | 722 | | | | | | 842 | | |
Deferral and amortization of acquisition expenses
|
| | | | (342) | | | | | | (245) | | |
Commission and other acquisition expenses
|
| | | | 380 | | | | | | 597 | | |
Employee benefits expenses
|
| | | | 277 | | | | | | 287 | | |
Depreciation
|
| | | | 38 | | | | | | 39 | | |
Amortization
|
| | | | 19 | | | | | | 14 | | |
Marketing and advertising
|
| | | | 23 | | | | | | 20 | | |
Professional service fees
|
| | | | 72 | | | | | | 64 | | |
Information technology expenses
|
| | | | 57 | | | | | | 63 | | |
Operating lease rentals
|
| | | | 3 | | | | | | 4 | | |
Other general expenses(1)
|
| | | | 73 | | | | | | 73 | | |
General expenses
|
| | | | 562 | | | | | | 564 | | |
Investment management expenses
|
| | | | 27 | | | | | | 31 | | |
Amortization of value of business acquired
|
| | | | 25 | | | | | | 58 | | |
Others
|
| | | | 3 | | | | | | 2 | | |
Other expenses
|
| | | | 55 | | | | | | 91 | | |
Finance costs
|
| | | | 106 | | | | | | 79 | | |
Total | | | | | 4,262 | | | | | | 5,813 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Operating expenses
|
| | | | 461 | | | | | | 481 | | |
Non-operating expenses
|
| | | | 101 | | | | | | 83 | | |
Total general expenses(1)
|
| | | | 562 | | | | | | 564 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Current income tax
|
| | | | (26) | | | | | | (14) | | |
Deferred income tax on temporary differences
|
| | | | 27 | | | | | | (36) | | |
Total | | | | | 1 | | | | | | (50) | | |
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
|
| | |
(Unaudited)
|
| |
(Unaudited)
|
|
Hong Kong
|
| |
16.5%
|
| |
16.5%
|
|
Thailand
|
| |
20%
|
| |
20%
|
|
Japan
|
| |
28%
|
| |
28%
|
|
Others
|
| |
12% – 30%
|
| |
12% – 25%
|
|
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Net profit /(loss) attributable to ordinary shareholders of the Company (US$’m):
|
| | | | | | | | | | | | |
Continuing operations
|
| | | | (266) | | | | | | 93 | | |
Discontinued operations
|
| | | | (1) | | | | | | 35 | | |
| | | | | (267) | | | | | | 128 | | |
Weighted average number of ordinary shares in issue for basic earnings/(loss) per share(1)
|
| | | | 584,599,500 | | | | | | 601,742,370 | | |
Basic earnings/(loss) per share attributable to ordinary shareholders of the
Company (US$ per share) |
| | | | | | | | | | | | |
Continuing operations
|
| | | | (0.46) | | | | | | 0.15 | | |
Discontinued operations
|
| | | | — | | | | | | 0.06 | | |
Total basic earnings/(loss) per share (US$ per share)
|
| | | | (0.46) | | | | | | 0.21 | | |
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Net profit/(loss) attributable to ordinary shareholders of the Company (US$’m):
|
| | | | | | | | | | | | |
Continuing operations, used in calculating basic earnings/(loss) per share
|
| | | | (266) | | | | | | 93 | | |
Effects of RSU and share options granted by subsidiaries(1)
|
| | | | — | | | | | | (1) | | |
| | | | | (266) | | | | | | 92 | | |
Discontinued operations, used in calculating basic earnings/(loss) per share
|
| | | | (1) | | | | | | 35 | | |
| | | | | (267) | | | | | | 127 | | |
Weighted average number of ordinary shares in issue for diluted earnings/
(loss) per share(2) |
| | | | 584,599,500 | | | | | | 601,742,370 | | |
Diluted earnings/(loss) per share attributable to ordinary shareholders of the Company (US$ per share)
|
| | | | | | | | | | | | |
| | |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Continuing operations
|
| | | | (0.46) | | | | | | 0.15 | | |
Discontinued operations
|
| | | | — | | | | | | 0.06 | | |
Total diluted earnings/(loss) per share (US$ per share)
|
| | | | (0.46) | | | | | | 0.21 | | |
|
US$m
|
| |
Goodwill
|
| |
Distribution rights
|
| |
Computer software
and others |
| |
Total
|
| ||||||||||||
Cost | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2020
|
| | | | 1,652 | | | | | | 1,827 | | | | | | 229 | | | | | | 3,708 | | |
Additions
|
| | | | — | | | | | | — | | | | | | 19 | | | | | | 19 | | |
Disposals
|
| | | | — | | | | | | — | | | | | | (5) | | | | | | (5) | | |
Foreign exchange movements
|
| | | | (40) | | | | | | (85) | | | | | | (15) | | | | | | (140) | | |
At June 30, 2021 (Unaudited)
|
| | | | 1,612 | | | | | | 1,742 | | | | | | 228 | | | | | | 3,582 | | |
Accumulated amortization and impairment | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2020
|
| | | | (37) | | | | | | (41) | | | | | | (99) | | | | | | (177) | | |
Amortization charge for the period
|
| | | | — | | | | | | (20) | | | | | | (14) | | | | | | (34) | | |
Disposals
|
| | | | — | | | | | | — | | | | | | 2 | | | | | | 2 | | |
Foreign exchange movements
|
| | | | 1 | | | | | | 3 | | | | | | 6 | | | | | | 10 | | |
At June 30, 2021 (Unaudited)
|
| | | | (36) | | | | | | (58) | | | | | | (105) | | | | | | (199) | | |
Net book value | | | | | | | | | | | | | | | | | | | | | | | | | |
At December 31, 2020
|
| | | | 1,615 | | | | | | 1,786 | | | | | | 130 | | | | | | 3,531 | | |
At June 30, 2021 (Unaudited)
|
| | | | 1,576 | | | | | | 1,684 | | | | | | 123 | | | | | | 3,383 | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Group | | | | | | | | | | | | | |
Investments in associates
|
| | | | 64 | | | | | | 332 | | |
Investments in a joint venture
|
| | | | 243 | | | | | | 239 | | |
Total | | | | | 307 | | | | | | 571 | | |
| | | | | | | | | | | | | | |
Group’s interest %
|
| |||
Entity
|
| |
Place of
incorporation |
| |
Principal activity
|
| |
Type of
investments |
| |
Type of
shares held |
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
|
| | | | | | | | | | | | | | | | | |
(Unaudited)
|
|
PT Asuransi BRI Life (“BRI Life”) | | | Indonesia | | | Life insurance | | | Associate | | | Ordinary | | |
—
|
| |
29.86%
|
|
CompareAsia Group Capital Limited | | |
Cayman Islands
|
| |
Operation of online platforms and provision of insurance brokerage and marketing services
|
| | Associate | | | Ordinary | | |
25.40%
|
| |
25.40%
|
|
One George Street
LLP |
| | Singapore | | |
Investment in real estate properties in Singapore
|
| |
Joint venture
|
| | Ordinary | | |
50.00%
|
| |
50.00%
|
|
US$m
|
| |
As at
June 30, 2021 |
| |||
| | |
(Unaudited)
|
| |||
Assets
|
| | | | 1,416 | | |
Liabilities
|
| | | | (926) | | |
Net assets
|
| | | | 490 | | |
The Group’s share in net assets – 29.86%
|
| | | | 147 | | |
US$m
|
| |
As at
June 30, 2021 |
| |||
| | |
(Unaudited)
|
| |||
Goodwill
|
| | | | 122 | | |
Group’s carrying amount of the investment in BRI Life
|
| | | | 269 | | |
|
US$m
|
| |
From March 2 to
June 30, 2021 |
| |||
| | |
(Unaudited)
|
| |||
Revenue
|
| | | | 114 | | |
Expenses
|
| | | | (133) | | |
Loss for the period
|
| | | | (19) | | |
Other comprehensive income for the period
|
| | | | 5 | | |
Total comprehensive loss for the period
|
| | | | (14) | | |
Group’s share of total comprehensive loss for the period – 29.86%
|
| | | | (4) | | |
US$m
|
| | | | | | |
Fair value | | | | | | | |
At December 31, 2020
|
| | | | 609 | | |
Additions
|
| | | | 114 | | |
Foreign exchange movements
|
| | | | (39) | | |
At June 30, 2021
|
| | | | 684 | | |
|
Standard and Poor’s and Fitch
|
| |
Moody’s
|
| |
Internal ratings reported as
|
|
|
AAA
|
| |
Aaa
|
| |
AAA
|
|
|
AA+ to AA-
|
| |
Aa1 to Aa3
|
| |
AA
|
|
|
A+ to A-
|
| |
A1 to A3
|
| |
A
|
|
|
BBB+ to BBB-
|
| |
Baa1 to Baa3
|
| |
BBB
|
|
|
BB+ to BB-
|
| |
Ba1 to Ba3
|
| |
BB
|
|
|
B+ to B-
|
| |
B1 to B3
|
| |
B
|
|
|
CCC and below
|
| |
Caa1 and below
|
| |
Not rated
|
|
| | |
Policyholder and shareholder investments
|
| |||||||||||||||||||||||||||
US$m
|
| |
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and shareholder
investments |
| |
Total
|
| |||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government bonds – issued in local currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | — | | | | | | 1,028 | | | | | | — | | | | | | 327 | | | | | | 1,355 | | |
Japan
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,561 | | | | | | 2,561 | | |
Thailand
|
| | | | — | | | | | | — | | | | | | — | | | | | | 12,903 | | | | | | 12,903 | | |
Indonesia
|
| | | | — | | | | | | — | | | | | | — | | | | | | 133 | | | | | | 133 | | |
Vietnam
|
| | | | — | | | | | | 7 | | | | | | — | | | | | | 38 | | | | | | 45 | | |
Malaysia
|
| | | | — | | | | | | — | | | | | | 23 | | | | | | 71 | | | | | | 94 | | |
Other
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | 48 | | | | | | 49 | | |
Sub-total | | | | | — | | | | | | 1,036 | | | | | | 23 | | | | | | 16,081 | | | | | | 17,140 | | |
Government bonds – issued in foreign currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Qatar
|
| | | | — | | | | | | 53 | | | | | | — | | | | | | 9 | | | | | | 62 | | |
Belgium
|
| | | | — | | | | | | 62 | | | | | | — | | | | | | — | | | | | | 62 | | |
Mexico
|
| | | | — | | | | | | — | | | | | | — | | | | | | 64 | | | | | | 64 | | |
Saudi Arabia
|
| | | | — | | | | | | 177 | | | | | | — | | | | | | — | | | | | | 177 | | |
Indonesia
|
| | | | — | | | | | | 25 | | | | | | — | | | | | | 57 | | | | | | 82 | | |
China
|
| | | | — | | | | | | 58 | | | | | | — | | | | | | — | | | | | | 58 | | |
Other
|
| | | | 3 | | | | | | 58 | | | | | | — | | | | | | 49 | | | | | | 110 | | |
Sub-total | | | | | 3 | | | | | | 433 | | | | | | — | | | | | | 179 | | | | | | 615 | | |
| | |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
US$m
|
| |
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and shareholder
|
| |
Total
|
| |||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government agency bonds(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | 10 | | | | | | 22 | | |
AA
|
| | | | 17 | | | | | | 154 | | | | | | — | | | | | | 295 | | | | | | 466 | | |
A
|
| | | | — | | | | | | 23 | | | | | | — | | | | | | 741 | | | | | | 764 | | |
BBB
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | 879 | | | | | | 891 | | |
Below investment grade
|
| | | | — | | | | | | — | | | | | | — | | | | | | 28 | | | | | | 28 | | |
Sub-total | | | | | 17 | | | | | | 201 | | | | | | — | | | | | | 1,953 | | | | | | 2,171 | | |
Corporate bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 86 | | | | | | — | | | | | | 7 | | | | | | 93 | | |
AA
|
| | | | 7 | | | | | | 409 | | | | | | — | | | | | | 153 | | | | | | 569 | | |
A
|
| | | | 39 | | | | | | 4,083 | | | | | | 27 | | | | | | 2,399 | | | | | | 6,548 | | |
BBB
|
| | | | 2 | | | | | | 4,041 | | | | | | — | | | | | | 3,309 | | | | | | 7,352 | | |
Below investment grade
|
| | | | — | | | | | | 85 | | | | | | — | | | | | | 1,291 | | | | | | 1,376 | | |
Not rated
|
| | | | 1 | | | | | | 223 | | | | | | — | | | | | | 91 | | | | | | 315 | | |
Sub-total | | | | | 49 | | | | | | 8,927 | | | | | | 27 | | | | | | 7,250 | | | | | | 16,253 | | |
Structured securities(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 445 | | | | | | — | | | | | | 6 | | | | | | 451 | | |
AA
|
| | | | — | | | | | | 95 | | | | | | — | | | | | | 659 | | | | | | 754 | | |
A
|
| | | | — | | | | | | 71 | | | | | | — | | | | | | 16 | | | | | | 87 | | |
BBB
|
| | | | — | | | | | | 39 | | | | | | — | | | | | | 20 | | | | | | 59 | | |
Below investment grade
|
| | | | — | | | | | | 13 | | | | | | — | | | | | | 25 | | | | | | 38 | | |
Not rated
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 2 | | |
Sub-total | | | | | — | | | | | | 663 | | | | | | — | | | | | | 728 | | | | | | 1,391 | | |
Others | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable investment funds
|
| | | | — | | | | | | — | | | | | | — | | | | | | 260 | | | | | | 260 | | |
Certificate of deposits
|
| | | | 6 | | | | | | 97 | | | | | | — | | | | | | 30 | | | | | | 133 | | |
Others
|
| | | | — | | | | | | 1 | | | | | | 4 | | | | | | — | | | | | | 5 | | |
Sub-total | | | | | 6 | | | | | | 98 | | | | | | 4 | | | | | | 290 | | | | | | 398 | | |
Total(3) | | | | | 75 | | | | | | 11,358 | | | | | | 54 | | | | | | 26,481 | | | | | | 37,968 | | |
| | |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
US$m
|
| |
Participating funds and other
participating business with distinct portfolios |
| |
Other policyholder and shareholder
investments |
| |
Total
|
| |||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government bonds – issued in local currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States
|
| | | | — | | | | | | 862 | | | | | | — | | | | | | 356 | | | | | | 1,218 | | |
Japan
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,643 | | | | | | 2,643 | | |
Thailand
|
| | | | — | | | | | | — | | | | | | — | | | | | | 11,519 | | | | | | 11,519 | | |
Indonesia
|
| | | | — | | | | | | — | | | | | | — | | | | | | 124 | | | | | | 124 | | |
Vietnam
|
| | | | — | | | | | | 7 | | | | | | — | | | | | | 15 | | | | | | 22 | | |
Malaysia
|
| | | | — | | | | | | — | | | | | | 30 | | | | | | 66 | | | | | | 96 | | |
Other
|
| | | | 2 | | | | | | 1 | | | | | | — | | | | | | 60 | | | | | | 63 | | |
Sub-total | | | | | 2 | | | | | | 870 | | | | | | 30 | | | | | | 14,783 | | | | | | 15,685 | | |
Government bonds – issued in foreign currency
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Qatar
|
| | | | — | | | | | | 130 | | | | | | — | | | | | | 12 | | | | | | 142 | | |
Belgium
|
| | | | — | | | | | | 57 | | | | | | — | | | | | | — | | | | | | 57 | | |
Saudi Arabia
|
| | | | — | | | | | | 211 | | | | | | — | | | | | | 4 | | | | | | 215 | | |
Indonesia
|
| | | | — | | | | | | 23 | | | | | | — | | | | | | 77 | | | | | | 100 | | |
China
|
| | | | — | | | | | | 56 | | | | | | — | | | | | | 2 | | | | | | 58 | | |
United Arab Emirates
|
| | | | — | | | | | | 57 | | | | | | — | | | | | | 4 | | | | | | 61 | | |
Other
|
| | | | — | | | | | | 60 | | | | | | — | | | | | | 45 | | | | | | 105 | | |
Sub-total | | | | | — | | | | | | 594 | | | | | | — | | | | | | 144 | | | | | | 738 | | |
| | |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
US$m
|
| |
Participating funds and
other participating business with distinct portfolios |
| |
Other policyholder
and shareholder Investments |
| |
Total
|
| |||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Government agency bonds(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 3 | | | | | | — | | | | | | 12 | | | | | | 15 | | |
AA
|
| | | | 16 | | | | | | 167 | | | | | | — | | | | | | 166 | | | | | | 349 | | |
A
|
| | | | — | | | | | | 37 | | | | | | — | | | | | | 666 | | | | | | 703 | | |
BBB
|
| | | | — | | | | | | 13 | | | | | | — | | | | | | 743 | | | | | | 756 | | |
Below investment grade
|
| | | | — | | | | | | — | | | | | | — | | | | | | 25 | | | | | | 25 | | |
Sub-total | | | | | 16 | | | | | | 220 | | | | | | — | | | | | | 1,612 | | | | | | 1,848 | | |
| | |
Policyholder and shareholder investments
|
| | | | | | | |||||||||||||||||||||
US$m
|
| |
Participating funds and
other participating business with distinct portfolios |
| |
Other
policyholder and shareholder Investments |
| |
Total
|
| |||||||||||||||||||||
| | |
FVTPL
|
| |
AFS
|
| |
FVTPL
|
| |
AFS
|
| | | | | | | ||||||||||||
Corporate bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 53 | | | | | | — | | | | | | 5 | | | | | | 58 | | |
AA
|
| | | | 4 | | | | | | 423 | | | | | | — | | | | | | 152 | | | | | | 579 | | |
A
|
| | | | 16 | | | | | | 4,359 | | | | | | 27 | | | | | | 2,409 | | | | | | 6,811 | | |
BBB
|
| | | | — | | | | | | 4,264 | | | | | | — | | | | | | 3,056 | | | | | | 7,320 | | |
Below investment grade
|
| | | | — | | | | | | 87 | | | | | | — | | | | | | 1,341 | | | | | | 1,428 | | |
Not rated
|
| | | | — | | | | | | 98 | | | | | | — | | | | | | 40 | | | | | | 138 | | |
Sub-total | | | | | 20 | | | | | | 9,284 | | | | | | 27 | | | | | | 7,003 | | | | | | 16,334 | | |
Structured securities(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AAA
|
| | | | — | | | | | | 347 | | | | | | — | | | | | | 1 | | | | | | 348 | | |
AA
|
| | | | — | | | | | | 52 | | | | | | — | | | | | | 773 | | | | | | 825 | | |
A
|
| | | | — | | | | | | 95 | | | | | | — | | | | | | 24 | | | | | | 119 | | |
BBB
|
| | | | — | | | | | | 76 | | | | | | — | | | | | | 23 | | | | | | 99 | | |
Below investment grade
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | 16 | | | | | | 28 | | |
Sub-total | | | | | — | | | | | | 582 | | | | | | — | | | | | | 837 | | | | | | 1,419 | | |
Others | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redeemable investment funds
|
| | | | — | | | | | | — | | | | | | — | | | | | | 251 | | | | | | 251 | | |
Certificate of deposits
|
| | | | 2 | | | | | | 73 | | | | | | — | | | | | | 29 | | | | | | 104 | | |
Others
|
| | | | — | | | | | | 1 | | | | | | 3 | | | | | | — | | | | | | 4 | | |
Sub-total | | | | | 2 | | | | | | 74 | | | | | | 3 | | | | | | 280 | | | | | | 359 | | |
Total(3) | | | | | 40 | | | | | | 11,624 | | | | | | 60 | | | | | | 24,659 | | | | | | 36,383 | | |
|
| | |
Policyholder and shareholder
|
| | | | | | | | | | | | | | | | | | | |||||||||
US$m
|
| |
Participating
funds and other participating business with distinct portfolios |
| |
Other policyholder
and shareholder |
| |
Sub-total
|
| |
Unit-linked
|
| |
Total
|
| |||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity shares
|
| | | | 811 | | | | | | 563 | | | | | | 1,374 | | | | | | — | | | | | | 1,374 | | |
Interests in investment funds
|
| | | | 1,592 | | | | | | 404 | | | | | | 1,996 | | | | | | 2,370 | | | | | | 4,366 | | |
Total | | | | | 2,403 | | | | | | 967 | | | | | | 3,370 | | | | | | 2,370 | | | | | | 5,740 | | |
| | |
Policyholder and shareholder
|
| | | | | | | | | | | | | | | | | | | |||||||||
US$m
|
| |
Participating
funds and other participating business with distinct portfolios |
| |
Other policyholder
and shareholder |
| |
Sub-total
|
| |
Unit-linked
|
| |
Total
|
| |||||||||||||||
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity shares(1)
|
| | | | 1,358 | | | | | | 831 | | | | | | 2,189 | | | | | | — | | | | | | 2,189 | | |
Interests in investment funds
|
| | | | 2,047 | | | | | | 628 | | | | | | 2,675 | | | | | | 2,412 | | | | | | 5,087 | | |
Total | | | | | 3,405 | | | | | | 1,459 | | | | | | 4,864 | | | | | | 2,412 | | | | | | 7,276 | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Debt securities | | | | | | | | | | | | | |
Listed
|
| | | | 17,182 | | | | | | 17,551 | | |
Unlisted
|
| | | | 20,786 | | | | | | 18,832 | | |
Total | | | | | 37,968 | | | | | | 36,383 | | |
Equity securities | | | | | | | | | | | | | |
Policyholder and shareholder | | | | | | | | | | | | | |
Listed
|
| | | | 1,474 | | | | | | 2,269 | | |
Unlisted
|
| | | | 1,896 | | | | | | 2,595 | | |
Unit-linked | | | | | | | | | | | | | |
Listed
|
| | | | 382 | | | | | | 366 | | |
Unlisted
|
| | | | 1,988 | | | | | | 2,046 | | |
Total | | | | | 5,740 | | | | | | 7,276 | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Policy loans
|
| | | | 856 | | | | | | 810 | | |
Secured loans
|
| | | | 11 | | | | | | 15 | | |
Accreting deposits and promissory notes
|
| | | | 717 | | | | | | 689 | | |
Term deposits
|
| | | | 171 | | | | | | 172 | | |
Other financial receivables
|
| | | | 1 | | | | | | 2 | | |
Provision for impairment
|
| | | | (2) | | | | | | (2) | | |
Total | | | | | 1,754 | | | | | | 1,686 | | |
| | |
Notional
amount |
| |
Fair value
|
| ||||||||||||
US$m
|
| |
Assets
|
| |
Liabilities
|
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Foreign exchange contracts | | | | | | | | | | | | | | | | | | | |
Forwards
|
| | | | 8,798 | | | | | | 55 | | | | | | (82) | | |
Cross-currency swaps
|
| | | | 1,002 | | | | | | 33 | | | | | | (48) | | |
Total foreign exchange contracts
|
| | | | 9,800 | | | | | | 88 | | | | | | (130) | | |
Interest rate swaps
|
| | | | 2,376 | | | | | | 2 | | | | | | (12) | | |
Others | | | | | | | | | | | | | | | | | | | |
Warrants and options
|
| | | | 8 | | | | | | 8 | | | | | | — | | |
Bond forward contracts
|
| | | | 1,340 | | | | | | 82 | | | | | | (37) | | |
Credit default swaps
|
| | | | 1,500 | | | | | | — | | | | | | (35) | | |
Total | | | | | 15,024 | | | | | | 180 | | | | | | (214) | | |
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | |
Foreign exchange contracts | | | | | | | | | | | | | | | | | | | |
Forwards
|
| | | | 8,937 | | | | | | 55 | | | | | | (69) | | |
| | |
Notional
amount |
| |
Fair value
|
| ||||||||||||
US$m
|
| |
Assets
|
| |
Liabilities
|
| ||||||||||||
Cross-currency swaps
|
| | | | 953 | | | | | | 8 | | | | | | (62) | | |
Total foreign exchange contracts
|
| | | | 9,890 | | | | | | 63 | | | | | | (131) | | |
Interest rate swaps
|
| | | | 9 | | | | | | 1 | | | | | | (3) | | |
Others | | | | | | | | | | | | | | | | | | | |
Warrants and options
|
| | | | 9 | | | | | | 41 | | | | | | — | | |
Bond forward contracts
|
| | | | 638 | | | | | | 43 | | | | | | (16) | | |
Total | | | | | 10,546 | | | | | | 148 | | | | | | (150) | | |
|
| | |
Fair value hierarchy
|
| | | | ||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
|
December 31, 2020 | | | | | | | | | | | | | |
Recurring fair value measurements | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | |
Available for sale
|
| | | | | | | | | | | | |
Debt securities
|
| |
1,921
|
| |
35,879
|
| |
39
|
| |
37,839
|
|
Government bonds
|
| |
1,449
|
| |
16,280
|
| |
—
|
| |
17,729
|
|
Government agency bonds
|
| |
—
|
| |
2,154
|
| |
—
|
| |
2,154
|
|
Corporate bonds
|
| |
329
|
| |
15,810
|
| |
38
|
| |
16,177
|
|
Structured securities
|
| |
—
|
| |
1,390
|
| |
1
|
| |
1,391
|
|
Others
|
| |
143
|
| |
245
|
| |
—
|
| |
388
|
|
| | |
Fair value hierarchy
|
| | | | ||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
|
At fair value through profit or loss
|
| | | | | | | | | | | | |
Debt securities
|
| |
—
|
| |
125
|
| |
4
|
| |
129
|
|
Government bonds
|
| |
—
|
| |
26
|
| |
—
|
| |
26
|
|
Government agency bonds
|
| |
—
|
| |
17
|
| |
—
|
| |
17
|
|
Corporate bonds
|
| |
—
|
| |
76
|
| |
—
|
| |
76
|
|
Others
|
| |
—
|
| |
6
|
| |
4
|
| |
10
|
|
Equity securities
|
| |
1,856
|
| |
2,078
|
| |
1,806
|
| |
5,740
|
|
Derivative financial instruments
|
| |
7
|
| |
173
|
| |
—
|
| |
180
|
|
Financial assets measured at fair value and held by discontinued operations
|
| |
—
|
| |
400
|
| |
—
|
| |
400
|
|
Total assets on a recurring fair value measurement basis
|
| |
3,784
|
| |
38,655
|
| |
1,849
|
| |
44,288
|
|
% of Total
|
| |
9 %
|
| |
87 %
|
| |
4 %
|
| |
100 %
|
|
Financial liabilities | | | | | | | | | | | | | |
Investment contract liabilities without DPF
|
| |
—
|
| |
—
|
| |
179
|
| |
179
|
|
Derivative financial instruments
|
| |
—
|
| |
214
|
| |
—
|
| |
214
|
|
Financial liabilities measured at fair value and held by discontinued operations
|
| |
—
|
| |
378
|
| |
—
|
| |
378
|
|
Total liabilities on a recurring fair value measurement basis
|
| |
—
|
| |
592
|
| |
179
|
| |
771
|
|
% of Total
|
| |
— %
|
| |
77 %
|
| |
23 %
|
| |
100 %
|
|
| | |
Fair value hierarchy
|
| | | | | | | |||||||||||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
Recurring fair value measurements | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Available for sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 1,956 | | | | | | 34,285 | | | | | | 42 | | | | | | 36,283 | | |
Government bonds
|
| | | | 1,417 | | | | | | 14,974 | | | | | | — | | | | | | 16,391 | | |
Government agency bonds
|
| | | | — | | | | | | 1,832 | | | | | | — | | | | | | 1,832 | | |
Corporate bonds
|
| | | | 402 | | | | | | 15,843 | | | | | | 42 | | | | | | 16,287 | | |
Structured securities
|
| | | | — | | | | | | 1,419 | | | | | | — | | | | | | 1,419 | | |
Others
|
| | | | 137 | | | | | | 217 | | | | | | — | | | | | | 354 | | |
At fair value through profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | — | | | | | | 97 | | | | | | 3 | | | | | | 100 | | |
Government bonds
|
| | | | — | | | | | | 32 | | | | | | — | | | | | | 32 | | |
Government agency bonds
|
| | | | — | | | | | | 16 | | | | | | — | | | | | | 16 | | |
Corporate bonds
|
| | | | — | | | | | | 47 | | | | | | — | | | | | | 47 | | |
Others
|
| | | | — | | | | | | 2 | | | | | | 3 | | | | | | 5 | | |
Equity securities
|
| | | | 2,635 | | | | | | 2,152 | | | | | | 2,489 | | | | | | 7,276 | | |
| | |
Fair value hierarchy
|
| | | | | | | |||||||||||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Derivative financial instruments
|
| | | | 4 | | | | | | 109 | | | | | | 35 | | | | | | 148 | | |
Financial assets measured at fair value and held by disposal group
|
| | | | — | | | | | | 99 | | | | | | — | | | | | | 99 | | |
Total assets on a recurring fair value measurement basis
|
| | | | 4,595 | | | | | | 36,742 | | | | | | 2,569 | | | | | | 43,906 | | |
% of Total
|
| | | | 10% | | | | | | 84% | | | | | | 6% | | | | | | 100% | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment contract liabilities without discretionary participation features
|
| | | | — | | | | | | — | | | | | | 170 | | | | | | 170 | | |
Derivative financial instruments
|
| | | | — | | | | | | 150 | | | | | | — | | | | | | 150 | | |
Financial liabilities measured at fair value and held by disposal
group |
| | | | — | | | | | | 60 | | | | | | — | | | | | | 60 | | |
Total liabilities on a recurring fair value measurement basis
|
| | | | — | | | | | | 210 | | | | | | 170 | | | | | | 380 | | |
% of Total
|
| | | | —% | | | | | | 55% | | | | | | 45% | | | | | | 100% | | |
US$m
|
| |
Debt
securities |
| |
Equity
securities |
| |
Derivative
financial assets/(liabilities) |
| |
Investment
contract liabilities without DPF |
| ||||||||||||
As at January 1, 2021
|
| | | | 43 | | | | | | 1,806 | | | | | | — | | | | | | (179) | | |
Net movement on investment contract liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | 9 | | |
Total gains/(losses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Reported under investment return in the interim condensed consolidated income statements
|
| | | | — | | | | | | 217 | | | | | | 35 | | | | | | — | | |
Reported under fair value reserve and foreign currency
translation reserve in the consolidated statements of comprehensive income |
| | | | (1) | | | | | | — | | | | | | — | | | | | | — | | |
Purchases
|
| | | | 5 | | | | | | 513 | | | | | | — | | | | | | — | | |
US$m
|
| |
Debt
securities |
| |
Equity
securities |
| |
Derivative
financial assets/(liabilities) |
| |
Investment
contract liabilities without DPF |
| ||||||||||||
Sales
|
| | | | (1) | | | | | | (13) | | | | | | — | | | | | | — | | |
Settlements
|
| | | | — | | | | | | (11) | | | | | | — | | | | | | — | | |
Transfer out of level 3
|
| | | | (1) | | | | | | (23) | | | | | | — | | | | | | — | | |
As at June 30, 2021 (Unaudited)
|
| | | | 45 | | | | | | 2,489 | | | | | | 35 | | | | | | (170) | | |
Change in unrealized gains/losses included in the interim condensed consolidated income statements for assets and liabilities held at the end of the reporting period, under investment return and other expenses
|
| | | | — | | | | | | 217 | | | | | | — | | | | | | — | | |
| | |
Fair value hierarchy
|
| | | | | | | | | | |||||||||||||||
US$m
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| | ||||||||||||||
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Assets for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Accreting deposits
|
| | | | — | | | | | | 693 | | | | | | — | | | | | | 693 | | | | ||
Total assets for which the fair value is disclosed
|
| | | | — | | | | | | 693 | | | | | | — | | | | | | 693 | | | | ||
Liabilities for which the fair value is disclosed | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Medium term / subordinated notes
|
| | | | 1,279 | | | | | | — | | | | | | — | | | | | | 1,279 | | | | ||
Total liabilities for which the fair value is disclosed
|
| | | | 1,279 | | | | | | — | | | | | | — | | | | | | 1,279 | | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Insurance receivables due from insurance and investment contract holders
|
| | | | 524 | | | | | | 509 | | |
Accounts receivable
|
| | | | 355 | | | | | | 151 | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Accrued investment income
|
| | | | 234 | | | | | | 228 | | |
Restricted cash
|
| | | | 50 | | | | | | 646 | | |
Deposits
|
| | | | 30 | | | | | | 29 | | |
Prepayments
|
| | | | 80 | | | | | | 90 | | |
Others
|
| | | | 12 | | | | | | 14 | | |
Total | | | | | 1,285 | | | | | | 1,667 | | |
|
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Cash
|
| | | | 2,555 | | | | | | 2,390 | | |
Cash equivalents
|
| | | | 175 | | | | | | 151 | | |
Total | | | | | 2,730 | | | | | | 2,541 | | |
US$m
|
| |
As at
June 30, 2021 |
| |||
At beginning of the period
|
| | |
|
45,181
|
| |
Valuation premiums and deposits
|
| | | | 4,761 | | |
Life insurance contracts(1)
|
| | | | | | |
New business
|
| | | | 1,703 | | |
In-force business
|
| | | | 3,059 | | |
General insurance contracts(2)
|
| | | | | | |
New business
|
| | | | 8 | | |
In-force business
|
| | | | (9) | | |
Expected investment return
|
| | | | 563 | | |
Liabilities released for policy termination, or other policy benefits paid and related expenses
|
| | | | (2,250) | | |
Life insurance contracts
|
| | | | | | |
New business
|
| | | | (65) | | |
In-force business
|
| | | | (2,184) | | |
General insurance contracts
|
| | | | | | |
New business
|
| | | | — | | |
In-force business
|
| | | | (1) | | |
Interest accrued and change in unit price
|
| | | | 163 | | |
Impact of changes in assumptions
|
| | | | (2) | | |
Foreign exchange movements
|
| | | | (1,900) | | |
Disposal of business
|
| | | | (57) | | |
Other movement
|
| | | | (79) | | |
At end of the period
|
| | |
|
46,380
|
| |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Deferred profit
|
| | | | 1,589 | | | | | | 2,097 | | |
Unearned revenue
|
| | | | 568 | | | | | | 625 | | |
Policyholders’ share of participating surplus
|
| | | | 451 | | | | | | 597 | | |
Liabilities for future policyholder benefits
|
| | | | 42,573 | | | | | | 43,061 | | |
Total
|
| | | | 45,181 | | | | | | 46,380 | | |
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Bank borrowings
|
| | | | 2,234 | | | | | | 2,239 | | |
Medium term notes
|
| | | | 323 | | | | | | 324 | | |
Subordinated notes
|
| | | | 900 | | | | | | 900 | | |
Total | | | | | 3,457 | | | | | | 3,463 | | |
Issue date
|
| |
Nominal amount
|
| |
Interest rate
|
| |
Tenor
|
|
Bank borrowings | | | | | | | | | | |
July 31, 2018
|
| |
US$275m
|
| |
LIBOR + 2%
|
| |
3 years
|
|
February 4, 2019
|
| |
US$175m
|
| |
LIBOR + 2%
|
| |
3 years
|
|
September 13, 2019
|
| |
US$1,800m
|
| |
LIBOR + 1.5%
|
| |
3 years
|
|
Medium term notes | | | | | | | | | | |
September 24, 2014
|
| |
US$325m
|
| |
5.00%
|
| |
10 years
|
|
Subordinated notes | | | | | | | | | | |
July 9, 2019
|
| |
US$550m
|
| |
5.75%
|
| |
5 years
|
|
July 23, 2019
|
| |
US$250m
|
| |
5.75%
|
| |
5 years
|
|
July 30, 2019
|
| |
US$100m
|
| |
5.75%
|
| |
5 years
|
|
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Trade and other payables(1)
|
| | | | 1,510 | | | | | | 1,407 | | |
Reinsurance-related payables
|
| | | | 385 | | | | | | 443 | | |
Distribution agreement payable
|
| | | | 686 | | | | | | 534 | | |
Lease liabilities
|
| | | | 145 | | | | | | 115 | | |
Obligations under repurchase and forward arrangements
|
| | | | 429 | | | | | | 388 | | |
Total | | | | | 3,155 | | | | | | 2,887 | | |
| | |
Number of
ordinary shares |
| |
Share capital
nominal value US$’m |
| |
Share premium
US$’m |
| |
Total share
capital and share premium US$’m |
| ||||||||||||
Authorized: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary shares of US$1 each as at December 31,
2020 and June 30, 2021 (Unaudited) |
| | | | 25,000,000 | | | | | | 25 | | | | | | — | | | | | | 25 | | |
Issued and fully paid: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary shares of US$1 each as at December 31,
2020 and January 1, 2021 |
| | | | 19,486,650 | | | | | | 19 | | | | | | 4,026 | | | | | | 4,045 | | |
Issue of ordinary shares
|
| | | | 2,142,858 | | | | | | 2 | | | | | | 598 | | | | | | 600 | | |
Ordinary shares of US$1 each as at June 30, 2021
(Unaudited) |
| | | | 21,629,508 | | | | | | 21 | | | | | | 4,624 | | | | | | 4,645 | | |
| | |
Number of
ordinary shares |
| |
Share capital
nominal value US$’m |
| |
Share premium
US$’m |
| |
Total share
capital and share premium US$’m |
| ||||||||||||
Authorized: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary shares of US$1 each as at June 30, 2021 (Unaudited)
|
| | | | 25,000,000 | | | | | | 25 | | | | | | — | | | | | | 25 | | |
Share Split
|
| | | | 2,475,000,000 | | | | | | — | | | | | | — | | | | | | — | | |
Ordinary shares of US$0.01 each after Share Split (Unaudited)
|
| | | | 2,500,000,000 | | | | | | 25 | | | | | | — | | | | | | 25 | | |
Issued and fully paid: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ordinary shares of US$1 each as at June 30, 2021 (Unaudited)
|
| | | | 21,629,508 | | | | | | 21 | | | | | | 4,624 | | | | | | 4,645 | | |
Share Split
|
| | | | 2,141,321,292 | | | | | | — | | | | | | — | | | | | | — | | |
Share Surrender
|
| | | | (1,514,065,560) | | | | | | (15) | | | | | | — | | | | | | (15) | | |
Ordinary shares of US$0.01 each after Share Split and Share Surrender (Unaudited)
|
| | | | 648,885,240 | | | | | | 6 | | | | | | 4,624 | | | | | | 4,630 | | |
| | |
Nominal amount
|
| |
Distribution
rate |
| |
Tenor
|
|
January 24, 2017
|
| |
US$250m
|
| |
6.250 %
|
| |
Perpetual
|
|
June 15, 2017
|
| |
US$500m
|
| |
Note 1
|
| |
Perpetual
|
|
July 6, 2017
|
| |
US$250m
|
| |
Note 1
|
| |
Perpetual
|
|
| | |
Nominal amount
|
| |
Distribution
rate |
| |
Tenor
|
|
February 1, 2018
|
| |
US$200m
|
| |
5.500 %
|
| |
Perpetual
|
|
September 16, 2019
|
| |
US$600m
|
| |
6.375 %
|
| |
Perpetual
|
|
US$m
|
| |
As at
December 31, 2020 |
| |
As at
June 30, 2021 |
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
January 24, 2017
|
| | | | 255 | | | | | | 255 | | |
June 15, 2017
|
| | | | 360 | | | | | | 360 | | |
July 6, 2017
|
| | | | 179 | | | | | | 179 | | |
February 1, 2018
|
| | | | 203 | | | | | | 203 | | |
September 16, 2019
|
| | | | 610 | | | | | | 610 | | |
| | | | | 1,607 | | | | | | 1,607 | | |
Subsidiary
|
| |
Primary insurance regulator
|
| |
Solvency regulation
|
|
FWD Life Insurance Company (Bermuda) Limited | | | Insurance Authority (“HKIA”) | | | Hong Kong Insurance Ordinance (“HKIO”) | |
FWD Life Insurance Public Company Limited | | | Thailand Office of Insurance Commission (“THOIC”) | | | Life Insurance Act of Thailand | |
FWD Fuji Life Insurance Company, Limited | | | Financial Services Agency (“FSA”) | | | Insurance Business Act | |
| | |
December 31, 2020
|
| |
June 30, 2021 (Unaudited)
|
| ||||||||||||||||||||||||||||||
US$m
|
| |
Total
available capital |
| |
Regulatory
minimum capital |
| |
Solvency
Ratio |
| |
Total
available capital |
| |
Regulatory
minimum capital |
| |
Solvency
Ratio |
| ||||||||||||||||||
FWD Life Insurance Company (Bermuda) Limited
|
| | | | 1,279 | | | | | | 442 | | | | | | 290% | | | | | | 1,384 | | | | | | 475 | | | | | | 291% | | |
FWD Life Insurance Public Company Limited
|
| | | | 1,730 | | | | | | 397 | | | | | | 436% | | | | | | 1,478 | | | | | | 477 | | | | | | 310% | | |
FWD Fuji Life Insurance Company, Limited
|
| | | | 1,219 | | | | | | 212 | | | | | | 1,151% | | | | | | 1,200 | | | | | | 198 | | | | | | 1,211% | | |
US$m
|
| |
Variable
interest rate |
| |
Fixed
interest rate |
| |
Non-interest
bearing |
| |
Total
|
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 2,021 | | | | | | 35,696 | | | | | | 251 | | | | | | 37,968 | | |
Cash and cash equivalents
|
| | | | 1,713 | | | | | | — | | | | | | 1,017 | | | | | | 2,730 | | |
Loans and deposits
|
| | | | 83 | | | | | | 1,670 | | | | | | 1 | | | | | | 1,754 | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | 5,740 | | | | | | 5,740 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 180 | | | | | | 180 | | |
Reinsurance receivables
|
| | | | — | | | | | | — | | | | | | 383 | | | | | | 383 | | |
Accrued investment income
|
| | | | — | | | | | | — | | | | | | 234 | | | | | | 234 | | |
Other assets
|
| | | | 48 | | | | | | — | | | | | | 923 | | | | | | 971 | | |
US$m
|
| |
Variable
interest rate |
| |
Fixed
interest rate |
| |
Non-interest
bearing |
| |
Total
|
| ||||||||||||
Total financial assets
|
| | | | 3,865 | | | | | | 37,366 | | | | | | 8,729 | | | | | | 49,960 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings
|
| | | | — | | | | | | 3,457 | | | | | | — | | | | | | 3,457 | | |
Other liabilities
|
| | | | — | | | | | | 1,272 | | | | | | 1,883 | | | | | | 3,155 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 214 | | | | | | 214 | | |
Total financial liabilities
|
| | | | — | | | | | | 4,729 | | | | | | 2,097 | | | | | | 6,826 | | |
|
US$m
|
| |
Variable
interest rate |
| |
Fixed
interest rate |
| |
Non-interest
bearing |
| |
Total
|
| ||||||||||||
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Debt securities
|
| | | | 2,133 | | | | | | 33,995 | | | | | | 255 | | | | | | 36,383 | | |
Cash and cash equivalents
|
| | | | 1,943 | | | | | | — | | | | | | 598 | | | | | | 2,541 | | |
Loans and deposits
|
| | | | 91 | | | | | | 1,591 | | | | | | 4 | | | | | | 1,686 | | |
Equity securities
|
| | | | — | | | | | | — | | | | | | 7,276 | | | | | | 7,276 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 148 | | | | | | 148 | | |
Reinsurance receivables
|
| | | | — | | | | | | — | | | | | | 324 | | | | | | 324 | | |
Accrued investment income
|
| | | | — | | | | | | — | | | | | | 228 | | | | | | 228 | | |
Other assets
|
| | | | 46 | | | | | | 600 | | | | | | 703 | | | | | | 1,349 | | |
Assets classified as held for sale
|
| | | | 1 | | | | | | 88 | | | | | | 6 | | | | | | 95 | | |
Total financial assets
|
| | | | 4,214 | | | | | | 36,274 | | | | | | 9,542 | | | | | | 50,030 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings(1)
|
| | | | — | | | | | | 3,463 | | | | | | — | | | | | | 3,463 | | |
Other liabilities
|
| | | | — | | | | | | 1,058 | | | | | | 1,829 | | | | | | 2,887 | | |
Derivative financial instruments
|
| | | | — | | | | | | — | | | | | | 150 | | | | | | 150 | | |
Liabilities classified as held for sale
|
| | | | — | | | | | | — | | | | | | 1 | | | | | | 1 | | |
Total financial liabilities
|
| | | | — | | | | | | 4,521 | | | | | | 1,980 | | | | | | 6,501 | | |
| | |
December 31, 2020
|
| |
June 30, 2021
(Unaudited) |
| ||||||||||||||||||
US$m
|
| |
Impact on
profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| |
Impact on
profit before tax |
| |
Impact on other
components of equity (before the effects of taxation) |
| ||||||||||||
Interest rate risk | | | | | | | | | | | | | | | | | | | | | | | | | |
+50 basis points shift in yield curves
|
| | | | 18 | | | | | | (1,611) | | | | | | 18 | | | | | | (1,546) | | |
-50 basis points shift in yield curves
|
| | | | (17) | | | | | | 1,664 | | | | | | (18) | | | | | | 1,633 | | |
| | |
December 31, 2020
|
| |
June 30, 2021
(Unaudited) |
| ||||||||||||||||||
US$m
|
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| |
Impact on
profit before tax |
| |
Impact on
other components of equity (before the effects of taxation) |
| ||||||||||||
Equity price risk | | | | | | | | | | | | | | | | | | | | | | | | | |
10 per cent increase in equity prices
|
| | | | 229 | | | | | | — | | | | | | 302 | | | | | | — | | |
10 per cent decrease in equity prices
|
| | | | (229) | | | | | | — | | | | | | (302) | | | | | | — | | |
US$m
|
| |
United States
Dollar |
| |
Hong Kong
Dollar |
| |
Thai
Baht |
| |
Japanese
Yen |
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity analyzed by original currency
|
| | | | 7,868 | | | | | | (3,784) | | | | | | 3,943 | | | | | | (4,058) | | |
Net notional amounts of currency derivatives
|
| | | | (5,872) | | | | | | 3,817 | | | | | | 712 | | | | | | 4,565 | | |
Currency exposure
|
| | | | 1,996 | | | | | | 33 | | | | | | 4,655 | | | | | | 507 | | |
5% strengthening of original currency | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 128 | | | | | | 231 | | | | | | 2 | | | | | | 3 | | |
Impact on other comprehensive income
|
| | | | (89) | | | | | | (229) | | | | | | 231 | | | | | | 22 | | |
Impact on total equity
|
| | | | 39 | | | | | | 2 | | | | | | 233 | | | | | | 25 | | |
5% strengthening of the US dollar | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 128 | | | | | | (227) | | | | | | (2) | | | | | | (3) | | |
Impact on other comprehensive income
|
| | | | (89) | | | | | | 225 | | | | | | (231) | | | | | | (22) | | |
Impact on total equity
|
| | | | 39 | | | | | | (2) | | | | | | (233) | | | | | | (25) | | |
June 30, 2021 (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity analyzed by original currency
|
| | | | 8,329 | | | | | | (4,064) | | | | | | 2,920 | | | | | | (4,086) | | |
Net notional amounts of currency derivatives
|
| | | | (6,155) | | | | | | 3,828 | | | | | | 673 | | | | | | 4,580 | | |
Currency exposure
|
| | | | 2,174 | | | | | | (236) | | | | | | 3,593 | | | | | | 494 | | |
5% strengthening of original currency | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 123 | | | | | | 253 | | | | | | 3 | | | | | | 3 | | |
Impact on other comprehensive income
|
| | | | (89) | | | | | | (265) | | | | | | 177 | | | | | | 22 | | |
Impact on total equity
|
| | | | 34 | | | | | | (12) | | | | | | 180 | | | | | | 25 | | |
5% strengthening of the US dollar | | | | | | | | | | | | | | | | | | | | | | | | | |
Impact on profit before tax
|
| | | | 123 | | | | | | (250) | | | | | | (3) | | | | | | (2) | | |
Impact on other comprehensive income
|
| | | | (89) | | | | | | 262 | | | | | | (177) | | | | | | (23) | | |
Impact on total equity
|
| | | | 34 | | | | | | 12 | | | | | | (180) | | | | | | (25) | | |
US$m
|
| |
Total
|
| |
Due in one
year or less |
| |
Due after one
year through two years |
| |
Due after two
year through five years |
| |
Due after
five years |
| |
No fixed
maturity |
| ||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale debt securities
|
| | | | 37,839 | | | | | | 1,324 | | | | | | 1,818 | | | | | | 5,131 | | | | | | 29,303 | | | | | | 263 | | |
Fair value through profit or loss
|
| | | | 5,869 | | | | | | 21 | | | | | | 16 | | | | | | 33 | | | | | | 59 | | | | | | 5,740 | | |
Loans and deposits
|
| | | | 1,754 | | | | | | 292 | | | | | | 123 | | | | | | 342 | | | | | | 980 | | | | | | 17 | | |
Derivatives financial instruments
|
| | | | 180 | | | | | | 75 | | | | | | 47 | | | | | | 46 | | | | | | 12 | | | | | | — | | |
Reinsurance receivables
|
| | | | 383 | | | | | | 383 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 1,205 | | | | | | 1,075 | | | | | | 51 | | | | | | 25 | | | | | | 38 | | | | | | 16 | | |
Cash and cash equivalents
|
| | | | 2,730 | | | | | | 2,730 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Assets of disposal group classified as
held for sale |
| | | | 400 | | | | | | 400 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 50,360 | | | | | | 6,300 | | | | | | 2,055 | | | | | | 5,577 | | | | | | 30,392 | | | | | | 6,036 | | |
Financial and insurance liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance and investment liabilities (net of DAC and reinsurance)
|
| | | | 38,894 | | | | | | 1,506 | | | | | | 207 | | | | | | 732 | | | | | | 36,449 | | | | | | — | | |
Borrowings
|
| | | | 3,457 | | | | | | 274 | | | | | | 1,960 | | | | | | 1,223 | | | | | | — | | | | | | — | | |
Derivative financial instruments
|
| | | | 214 | | | | | | 104 | | | | | | 1 | | | | | | 72 | | | | | | 37 | | | | | | — | | |
Other liabilities
|
| | | | 3,010 | | | | | | 2,016 | | | | | | 122 | | | | | | 473 | | | | | | 369 | | | | | | 30 | | |
Lease liabilities
|
| | | | 145 | | | | | | 66 | | | | | | 27 | | | | | | 39 | | | | | | 13 | | | | | | — | | |
Liabilities directly associated with the assets of disposal group classified as held for sale
|
| | | | 378 | | | | | | 378 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 46,098 | | | | | | 4,344 | | | | | | 2,317 | | | | | | 2,539 | | | | | | 36,868 | | | | | | 30 | | |
US$m
|
| |
Total
|
| |
Due in one
year or less |
| |
Due after one
year through two years |
| |
Due after two
year through five years |
| |
Due after
five years |
| |
No fixed
maturity |
| ||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Available-for-sale debt securities
|
| | | | 36,283 | | | | | | 925 | | | | | | 2,272 | | | | | | 4,718 | | | | | | 28,116 | | | | | | 252 | | |
Fair value through profit or loss
|
| | | | 7,376 | | | | | | 9 | | | | | | 16 | | | | | | 16 | | | | | | 59 | | | | | | 7,276 | | |
Loans and deposits
|
| | | | 1,686 | | | | | | 318 | | | | | | 160 | | | | | | 320 | | | | | | 867 | | | | | | 21 | | |
Derivatives financial instruments
|
| | | | 148 | | | | | | 59 | | | | | | 20 | | | | | | 62 | | | | | | 7 | | | | | | — | | |
Reinsurance receivables
|
| | | | 324 | | | | | | 324 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 1,577 | | | | | | 1,492 | | | | | | 48 | | | | | | 16 | | | | | | 5 | | | | | | 16 | | |
Cash and cash equivalents
|
| | | | 2,541 | | | | | | 2,541 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Assets of disposal group classified as
held for sale |
| | | | 99 | | | | | | 99 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 50,034 | | | | | | 5,767 | | | | | | 2,516 | | | | | | 5,132 | | | | | | 29,054 | | | | | | 7,565 | | |
Financial and insurance liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Insurance and investment liabilities (net of DAC and reinsurance)
|
| | | | 39,832 | | | | | | 1,769 | | | | | | 235 | | | | | | 825 | | | | | | 37,003 | | | | | | — | | |
Borrowings
|
| | | | 3,463 | | | | | | 450 | | | | | | 1,790 | | | | | | 1,223 | | | | | | — | | | | | | — | | |
Derivative financial instruments
|
| | | | 150 | | | | | | 65 | | | | | | 10 | | | | | | 46 | | | | | | 29 | | | | | | — | | |
Other liabilities
|
| | | | 2,772 | | | | | | 1,963 | | | | | | 24 | | | | | | 419 | | | | | | 358 | | | | | | 8 | | |
Lease liabilities
|
| | | | 115 | | | | | | 36 | | | | | | 25 | | | | | | 41 | | | | | | 13 | | | | | | — | | |
Liabilities directly associated with the assets of disposal group classified as held for sale
|
| | | | 60 | | | | | | 60 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | 46,392 | | | | | | 4,343 | | | | | | 2,084 | | | | | | 2,554 | | | | | | 37,403 | | | | | | 8 | | |
Number of shares
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Outstanding at the beginning of the period
|
| | | | 1,150,782 | | | | | | 923,256 | | |
Awarded
|
| | | | 128,714 | | | | | | 288,028 | | |
Forfeited
|
| | | | (111,834) | | | | | | (155,957) | | |
Vested
|
| | | | (235,260) | | | | | | (152,643) | | |
Outstanding at end of the period
|
| | | | 932,402 | | | | | | 902,684 | | |
Number of share-options
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Outstanding at the beginning of the period
|
| | | | 663,427 | | | | | | 590,251 | | |
Awarded
|
| | | | 203,192 | | | | | | — | | |
Forfeited
|
| | | | (165,386) | | | | | | (32,718) | | |
Vested
|
| | | | (79,829) | | | | | | (123,856) | | |
Outstanding at end of the period
|
| | | | 621,404 | | | | | | 433,677 | | |
US$m
|
| |
Six months ended
June 30, 2020 |
| |
Six months ended
June 30, 2021 |
| ||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| ||||||
Short-term employee benefits
|
| | | | 8 | | | | | | 9 | | |
Share-based payments
|
| | | | 10 | | | | | | 11 | | |
Other long-term benefits
|
| | | | 1 | | | | | | 2 | | |
Total | | | | | 19 | | | | | | 22 | | |
US$m
|
| |
December 31, 2020
|
| |
June 30, 2021
|
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Within one year
|
| | | | 20 | | | | | | 26 | | |
In the second to fifth years
|
| | | | 42 | | | | | | 54 | | |
Over five years
|
| | | | 52 | | | | | | 93 | | |
Total
|
| | | | 114 | | | | | | 173 | | |
US$m
|
| |
December 31, 2020
|
| |
June 30, 2021
|
| ||||||
| | | | | | | | |
(Unaudited)
|
| |||
Within one year
|
| | | | 293 | | | | | | 321 | | |
In the second to fifth years, inclusive
|
| | | | 1,033 | | | | | | 1,059 | | |
Over five years
|
| | | | — | | | | | | — | | |
Total
|
| | | | 1,326 | | | | | | 1,380 | | |
|
Purchaser
|
| |
Date of Issuance
|
| |
Number of
Securities |
| |
Consideration
|
| |
Underwriting Discount
|
|
|
1.
Li Tzar Kai, Richard
|
| |
December 17, 2020
|
| | 18,486,640 | | | US$0 | | | Not applicable | |
|
2.
PCGI Holdings Limited
|
| | May 13, 2021 | | | 2,142,858 | | | US$600,000,240 | | | Not applicable | |
Exhibit No.
|
| |
Description of Exhibit
|
|
1.1*
|
| | Form of Underwriting Agreement | |
2.1
|
| | | |
2.2*
|
| | Implementation Agreement dated [•], 2021 between, among others, PCGI Intermediate Holdings Limited, FWD Limited and FWD Group Limited | |
3.1
|
| | | |
3.2*
|
| | Amended and Restated Memorandum and Articles of Association of the Registrant | |
4.1*
|
| | Specimen of Ordinary Share Certificate | |
4.2*
|
| | Specimen of American Depositary Receipt (included in Exhibit 4.3) | |
4.3*
|
| | Form of Deposit Agreement among the Registrant, J P Morgan Chase Bank, N.A., as depositary, and the holders and beneficial owners of ADSs issued thereunder | |
4.4*
|
| | Form of American Depositary Receipt evidencing American Depositary Shares (included in Exhibit 4.2) | |
5.1*
|
| | Opinion of Walkers (Hong Kong) regarding the validity of the ordinary shares being registered and certain Cayman Islands tax matters | |
8.1*
|
| | Opinion of Walkers (Hong Kong) regarding certain Cayman Islands tax matters (included in Exhibit 5.1) | |
10.1
|
| | | |
10.2
|
| | | |
10.3
|
| | | |
10.4
|
| | | |
10.5
|
| | | |
10.6
|
| | | |
10.7
|
| | | |
10.8
|
| | | |
10.9
|
| | | |
10.10
|
| | | |
10.11
|
| | | |
10.12
|
| | | |
10.13
|
| | | |
10.14
|
| | | |
10.15
|
| | | |
10.16
|
| | |
Exhibit No.
|
| |
Description of Exhibit
|
|
10.17
|
| | | |
10.18
|
| | | |
10.19
|
| | | |
10.20
|
| | | |
10.21
|
| | | |
10.22
|
| | | |
10.23
|
| | | |
10.24
|
| | | |
10.25
|
| | | |
10.26
|
| | | |
10.27
|
| | | |
10.28
|
| | | |
10.29
|
| | | |
10.30
|
| | Subscription Agreement dated September 23, 2021 by and between FWD Group Holdings Limited and Athene Life Re Ltd. | |
21.1
|
| | | |
23.1
|
| | | |
23.2*
|
| | Consent of Walkers (Hong Kong) (included in Exhibit 5.1) | |
23.3
|
| | | |
23.4
|
| | | |
24.1
|
| | |
|
Signature
|
| |
Capacity
|
| |
Date
|
|
|
/s/ Huynh Thanh Phong
Huynh Thanh Phong
|
| |
Group Chief Executive Officer and Executive Director
(Principal Executive Officer) |
| |
September 23, 2021
|
|
|
/s/ Jon Nielsen
Jon Nielsen
|
| |
Managing Director and Group Chief Financial Officer
(Principal Accounting and Financial Officer) |
| |
September 23, 2021
|
|
|
/s/ Ronald Arculli
Ronald Arculli
|
| | Chairman and Non-Executive Director | | |
September 23, 2021
|
|
|
/s/ Li Tzar Kai, Richard
Li Tzar Kai, Richard
|
| | Executive Director | | |
September 23, 2021
|
|
|
/s/ Yijia Tiong
Yijia Tiong
|
| | Independent Non-Executive Director | | |
September 23, 2021
|
|
|
Signature
|
| |
Capacity
|
| |
Date
|
|
|
/s/ Chung Kit Hung, Martina
Chung Kit Hung, Martina
|
| | Independent Non-Executive Director | | |
September 23, 2021
|
|
|
/s/ Dirk Sluimers
Dirk Sluimers
|
| | Independent Non-Executive Director | | |
September 23, 2021
|
|
|
/s/ John Baird
John Baird
|
| | Independent Non-Executive Director | | |
September 23, 2021
|
|
|
/s/ Guido Fürer
Guido Fürer
|
| | Non-Executive Director | | |
September 23, 2021
|
|
|
/s/ Walter Kielholz
Walter Kielholz
|
| | Non-Executive Director | | |
September 23, 2021
|
|
|
/s/ Kyoko Hattori
Kyoko Hattori
|
| | Independent Non-Executive Director | | |
September 23, 2021
|
|
|
/s/ Si-Hang Ma, Frederick
Si-Hang Ma, Frederick
|
| | Independent Non-Executive Director | | |
September 23, 2021
|
|