AIA New Business Value Soars 27%, Adds $2 Billion to Buyback.

AIA Group Ltd., an Asia insurer, reported a 27% increase in new business value in the first quarter, reaching $1.3 billion. The company also announced an additional $2 billion in share buybacks and set a target to pay out 75% of its annual net free surplus generation to shareholders. AIA's shares in Hong Kong rose more than 7% in response to the news. The company acknowledged using a broker that relied on unlicensed agents to sell insurance policies, but emphasized that this only accounted for about 3% of new business value for its Hong Kong unit. AIA operates in 18 Asia-Pacific markets, with Hong Kong and mainland China being the largest contributors to new business and policy sales. The company's success in selling tax-deferred pension savings products in mainland China continued into the first quarter. Despite recent regulatory clampdowns on the industry, AIA's shares have been under pressure, down 25% in two years. However, the company's recent announcements have addressed investor concerns and provided clarity on future capital management policies. [Extracted from the article]