AIA has reported a 22% growth in value of new business (VONB) to $1.81bn for the first half of this year, compared to the corresponding half in 2020, according to statements released by the regional insurer. VONB exceeded pre-pandemic levels in all reportable segments except Hong Kong.
VONB growth was broad-based, driven by the performance of agency distribution and increased demand for protection products. The strong performance of leading local bancassurance partners supported VONB growth. AIA China remained the largest contributor to the group’s VONB and delivered a 20% increase in VONB on a like-for-like basis.
Key financial metrics
The company's operating profit after tax (OPAT) increased by 5% to $3.18bn in 1H2021. The free surplus stood at $17.9bn at 30 June 2021, up by $4.4bn from 31 December 2020.
AIA group chief executive and president Lee Yuan Siong said, “AIA has delivered very strong VONB growth of 22% and an increase in all of our key financial metrics.”
“Our growing high-quality in-force portfolio supported growth in both OPAT (Operating profit after tax) and UFSG (underlying free surplus generation). EV (Embedded value) Equity and shareholders’ allocated equity reached record highs and our very strong financial position is reflected in a significant increase in free surplus and a Group LCSM (Local Capital Summation Method) cover ratio of 412%.
“The Board has declared an 8.6% increase in interim dividend to 38.00 Hong Kong cents per share.”
AIA Group has a presence in 18 markets – wholly-owned branches and subsidiaries in mainland China, Hong Kong, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau, and a 49% joint venture in India.
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