AIA increased the value of new business by 10% in the first half of the year
In the first half of the year, insurance company AIA Group increased its value of new business (VONB) by 10% year-over-year to $3.21 billion at constant exchange rates. Channel NewsAsia reported this, citing Reuters.
VONB reflects the expected profit from new insurance premiums and is one of the indicators of the company’s future growth. The result was in line with the consensus forecast compiled by AIA, which stood at $3.2 billion.
Excluding Thailand, AIA’s new business value for the six-month period rose 14% year-over-year on a constant currency basis. The overall figure was driven by growth across all distribution channels and segments, except for Thailand.
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AIA Chief Executive Officer and President Li Yuan Xiang stated that Asia remains the most promising opportunity for growth in life and health insurance. According to him, structural factors in the region are driving demand for the insurer’s products and supporting long-term growth prospects.
AIA also announced an interim dividend of 53.90 Hong Kong cents per share—10% more than a year earlier. Earlier, shares of Hong Kong-registered insurers came under pressure following reports that Chinese tax authorities had begun levying a 20 percent tax on income from Hong Kong insurance policies. This raised concerns that tighter controls on offshore investments could limit demand from clients in mainland China.
