AIA Group’s first-half profit jumps 50% to US$2.25 billion on surging policy sales in Hong Kong to mainland Chinese visitors
- AIA Group’s value of new business grew by 37 per cent to US$2.03 billion, beating 29 per cent growth estimated by Nomura
- The insurer declared an interim dividend of 42.29 Hong Kong cents per share payable on September 26
Net profit rose 50 per cent in the six months to June to US$2.25 billion (HK$17.6 billion), or 19.39 US cents per share, according to an exchange filing on Thursday. Operating profit after tax increased 0.2 per cent to US$3.27 billion. The insurer adopted the new IFR17 accounting standards for insurance business this year, and adjusted the comparison figure a year earlier.
AIA’s value of new business (VONB), an important measure of sales and future growth, surged 37 per cent to US$2 billion, beating the 29 per cent estimate by Nomura. Income from investments rose 9 per cent to US$1.72 billion, aided by a more stable capital market.
“With the pandemic disruption behind us, the strength of AIA’s unrivalled distribution platform across Asia has powered a return to very strong new business momentum,” CEO and president Lee Yuan Siong said in results media briefing. “All of our reportable segments and distribution channels delivered higher VONB.”
AIA’s improved showing marked an ongoing recovery for many businesses that were affected by the border closure from 2020 to earlier this year. The strong VONB growth came on the back of a 6 per cent increase in the second half, after Hong Kong relaxed its inbound travel restrictions.
