(Reuters) -Hong Kong-based insurer AIA Group ( AAIGF ) on Monday posted a 31% rise in its first-quarter value of new business (VONB) on a constant exchange currency basis helped by strong performance across segments, and announced an additional $2 billion share buyback.

AIA Group ( AAIGF ) also announced an "enhanced capital management policy" under which it will target payout of 75% of annual net free surplus generation through dividends and buybacks starting fiscal 2024 results.

"In view of AIA's very strong financial position and our confidence in our future operational and financial delivery, the board has approved a US$2.0 billion addition to our existing share buy-back programme," Chief Executive Officer Lee Yuan Siong said.

That takes its existing share buyback programme to $12 billion.

AIA, founded in Shanghai more than a century ago, posted a 38% growth in its China business while its Hong Kong operation grew 43% during the quarter, helped by higher demand from Mainland China visitors as well as more active agents.

AIA's VONB, which gauges expected profits from new premiums and is a key barometer for future growth, came in at $1.33 billion in the three months ending March 31 compared with $1.05 billion a year ago.