Strong results for AIA in H1, led by China business performance

Underpinned by its strong business performance across the Asia-Pacific region, AIA Group Ltd announced on Friday that it delivered double-digit growth across its main financial metrics for the six months ended 30 June 2018.

The pan-Asian insurer said its operating profit after tax grew by 14 percent to US$2,653 million, compared with the first half of 2017, mainly driven by strong growth in China’s mainland, Hong Kong, Malaysia and other markets.

The life insurance giant recorded 17 percent growth in the value of new business (VONB) to US$1,954 million, compared with the corresponding six-month period in 2017.

Value of new business is a key indicator to measure the profitability of new policies sold and future growth potential.

AIA said that its wholly-owned operation in China was once again its fastest-growing business in the first half of 2018, with a 37 percent rise in new business value growth to hit US$556 million.

Exceptional performance comes predominantly from higher sale volumes as they continued to focus on quality recruitment, and productivity enhancement through disciplined execution of its Premier Agency strategy.

The group’s annualized new premiums increased by 9 percent annually to US$3,252 million in the first half, according to its latest interim results announcement.

The half-year report noted that Asian macroeconomic fundamentals remain resilient, despite recent volatility in financial markets due to international trade tensions and softening consumer sentiment.

AIA believes that the region is “well positioned” to meet potential challenges, as Asian economies have increasingly reoriented towards domestic drivers of growth.