Glonghui, May 29 | UBS said that AIA promised to complete the current repurchase target in terms of UBS's investment theory in Asia, and indicated that 75% of the net annual free surplus would be fed back to shareholders through dividends and repurchases. According to AIA, the net annual free surplus generated is largely affected by the erosion of actual free surpluses and new contract surpluses. Actual free surplus growth is mainly driven by multiple re-businesses. The erosion of new contract surpluses has a positive relationship with the value of the new business, but depends on capital consumption, product and geographical mix. The report quoted AIA as saying that in addition to share buybacks, the company seeks to improve the overall return on equity by generating profitable new businesses, reducing risk by using financial instruments, selling low return on share capital, and optimizing the capital structure. Furthermore, AIA also revealed that recruitment of agents for the Hong Kong and Mainland tourist departments is progressing well, and demand for mainland tourist insurance is still strong. Even though regulators recently investigated individual brokers, there was no significant impact on the rest of the company's brokerage business. UBS currently gives AIA a “buy” rating and a target price of HK$96.