(Aug 20): AIA Group Ltd reported 13% growth in new business value in the first half of this year, led by strong sales in key markets including Hong Kong and China.
The growth to US$3.21 billion (RM12.97 billion) fell short of the US$3.26 billion median estimate of six analysts compiled by Bloomberg News. Without the exchange rate impact, the insurer’s growth rate would have been 10%.
The firm’s expansion underscored the broader industry trend. Insurers have seen continued demand from both local and mainland clients seeking higher returns amid low interest rates at home. Investors are gauging the extent of China’s recent tax collection efforts for dividend payouts on offshore insurance products and the impact on Hong Kong’s insurance industry.
In Hong Kong, the largest market for AIA, new business value increased 10% to US$1.17 billion for the first six months on continued demand from the Chinese mainland visitor segment. The metric for China grew 26% to US$937 million. In Southeast Asia, Singapore’s sales climbed 14% to US$294 million, driven by demand in wealth and long-term savings products from both affluent and high-net-worth clients.
Garth Jones, the group chief financial officer, said in an interview with Bloomberg News that the insurer continues to see “good demand” from mainland China visitors despite Beijing’s increasing moves to tax offshore wealth.
“Based on our understanding, there’s no change in the the tax laws in China,” he said. “People don’t come to Hong Kong to buy our products for for tax reasons principally.”
The company will pay an interim dividend of 53.9 Hong Kong cents per share, an increase of 10%.
“As we navigate an extended period of uncertainty, marked by rising global geopolitical tensions, financial market volatility and renewed inflationary pressures, AIA’s core advantages remain as relevant to customers today as they have ever been,” Lee Yuan Siong, the group chief executive and president, said in a statement on Thursday.
AIA said it completed in June the US$1.7 billion share buy-back plan that was announced in March. It also reported a record high annualised operating return on equity at 17.5%, up from 15.5% in 2025.
The insurer has made an annual expense saving of US$200 million after investing some US$800 million to update its technology in recent years, Jones said. The technology developments have helped cut down administrative hours and enabled agents to focus on client services, he said.
Uploaded by Tham Yek Lee