Mainland China Drives AIA Group's Impressive First-Half Profit Growth

Thursday, 22 August 2024, 02:23

Mainland China continues to influence AIA Group's financial success, as first-half profit soars 53%. With robust sales from Hong Kong, AIA's value of new business (VONB) expands significantly. Positive responses from CEO Lee Yuan Siong highlight exceptional growth opportunities in this pivotal market.
South China Morning Post
Mainland China Drives AIA Group's Impressive First-Half Profit Growth

Mainland China Shoppers Fuel AIA Group's 53% Profit Surge

AIA Group, Asia's largest insurer, reported a remarkable 53% increase in net profit for the first half of the year, rising to US$3.31 billion. This growth is largely driven by mainland Chinese customers purchasing policies in Hong Kong as a hedge against the weakening yuan. According to the Hong Kong stock exchange filing, this surpasses analysts’ expectations of a 45% profit increase.

Significant Metrics and Financial Milestones

  • Operating profit after tax, excluding one-off items, rose 7% to US$3.39 billion.
  • Value of New Business (VONB) surged by 25% to US$2.46 billion.

CEO Lee Yuan Siong noted strong free surplus generation and substantial capital returns to shareholders. AIA’s stock rose 3.6% post-announcement, reflecting confidence in its operational and financial outlook.

Market Dynamics

With Hong Kong and China accounting for 62% of AIA's new business, both regions showed robust sales growth. VONB in Hong Kong increased by 26% amidst a backdrop of a significant 13% yuan depreciation against the US dollar in the last two years.

The demand from mainland customers, seeking better health protection and investment returns, continues to drive results, with travel to Hong Kong increasing by 64%.

Expanding Presence in Asia

Alongside Hong Kong, AIA’s markets in Southeast Asia showcased impressive VONB growth: 27% in Singapore, 16% in Thailand, and 14% in Malaysia.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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