AIA first-half profit jumps 53% amid mainland Chinese insurance-buying spree in Hong Kong
- Asia’s largest insurer posted its best first-half profit in five years at US$3.31 billion and beat analysts’ estimates of US$3.27 billion
AIA Group, Asia’s largest insurer, reported its best first-half profit in five years, as mainland Chinese customers continue buying policies in Hong Kong with an eye on better investment returns and as a hedge against a weakening yuan.
Net profit rose 53 per cent on constant exchange rate in the six months to June to US$3.31 billion, or 29.53 US cents per share, according to a filing to the Hong Kong stock exchange on Thursday. This exceeded analysts’ estimates of a 45 per cent increase in net profit to US$3.27 billion. It was also the best first-half result since US$3.86 billion in the same period in 2019.
Operating profit after tax, excluding one-off items and valuation gains in the company’s investment portfolio, increased 7 per cent to US$3.39 billion.
AIA’s value of new business (VONB), an important measure of sales and future growth, surged 25 per cent to US$2.46 billion.
“We have achieved record new-business profit, significant earnings growth, strong free surplus generation and returned substantial capital to shareholders,” Lee Yuan Siong, CEO and president, said in the statement.
