AIA Group announced that it has achieved "double-digit growth across our main financial metrics" in the first six months ended June 2019.
Value of new business (VONB) increased by 20% to US$2,275 million, compared with the corresponding six-month period ended 30 June 2018. Annualised new premiums (ANP) increased by 9% to US$3,443 million, and operating profit after tax (OPAT) was up by 12% to US$2,898 million.
AIA’s proprietary agency distribution delivered 21% growth in VONB to US$1,708 million as its Premier Agency strategy achieved a further increase in active agents and productivity, it said. Agency distribution remains its core distribution channel and accounted for 72% of the Group’s total VONB in the first half of 2019.
Mr Ng Keng Hooi, AIA’s Group Chief Executive and President, said, “I am delighted that AIA continues to rank number one in the world for Million Dollar Round Table members with more than 12,000 registered members. VONB from our partnership business increased by 17 per cent, supported by excellent growth of our multiple bancassurance partnerships across the region.”
VONB from partnerships grew by 17% to US$665 million and accounted for 28% of the Group total.
AIA’s wholly-owned business in China was its fastest growing market segment with growth of 34% in VONB to US$702 million. Its business in Hong Kong registered a 19% increase in VONB to US$945 million, benefiting from broad-based growth across customer segments and distribution channels.
Malaysia achieved 10% VONB growth to US$130 million and within its “Other Markets”, 17% growth in VONB was driven by strong performances in Australia, the Philippines and Vietnam.
Mr Ng, said: “As we celebrate our centennial this year, we remain very confident about the long-term outlook for AIA. We will continue to focus on delivering long-term sustainable value for our shareholders and helping millions of our customers live Healthier, Longer, Better Lives.”
AIA Singapore registered Total Weighted Premium Income (TWPI) growth of 7% to US$1,456 million supported by renewal premiums, and US$173 million of VONB.
Its key launches in 2019 include AIA Beyond Critical Care, Singapore’s first-ever critical illness plan to provide coverage for mental conditions, and POS EZ, an “innovative online platform and first-in-market innovation” that has improved its after-sales service where its agency can facilitate a multitude of customer requests digitally with customers authenticating their requests securely anywhere, anytime.
AIA Singapore “maintained its leading agency position through continued execution of our Premier Agency strategy”.
Mr Patrick Teow, CEO of AIA Singapore, said: “A testament to our industry leadership, AIA Singapore was declared the Insurance Company of the Year at the 4th Asia Trusted Life Agents & Advisers Awards presentation in 2019, where we edged out about 400 nominations from 15 markets. Attaining the award for the second time, we are recognised as the life insurance company with a remarkable agency force that sets high professional standards, and a company that continues to invest in and support its agency force to thrive in the changing insurance landscape.”
Singapore: 1H2019 - Annual premiums up 7% y-o-y to S$1.44 bln, overall weighted new business premiums held back by single premium decline
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