AIA Group's first-half new business value rises 10%

Aug 20 : Insurer AIA Group on Thursday posted a 10 per cent jump in half-year value of new business (VONB), backed by growth across all distribution channels and segments, excluding Thailand.

AIA's VONB, a measure of expected profits from new premiums and a key barometer for future growth, came in at $3.21 billion on a constant exchange rate basis.

That was in line with the absolute VONB consensus estimate of $3.2 billion compiled by the company.

Excluding Thailand, the company's half-year VONB grew by 14 per cent from the previous year on a constant currency basis.

Earlier this month, Hong Kong-listed insurers came under pressure after a report said that Chinese tax authorities are beginning to levy a 20 per cent personal income tax on returns from Hong Kong insurance policies, raising concerns that stricter scrutiny of offshore investments could curb demand from mainland customers.

"Asia remains the most compelling growth opportunity for life and health insurance," said Lee Yuan Siong, AIA's Group chief executive and president.

He also said structural tailwinds across the region were boosting demand for the insurer's products, underpinning long-term growth prospects.

AIA declared an interim dividend of 53.90 HK cents ($0.069) per share, up 10 per cent from the previous year.