HONG KONG: AIA Group, the third-largest insurer in Asia in terms of market value, posted better than expected earnings in the year to November, thanks to robust growth of new business in mainland China and Hong Kong.
Net profit of the Hong Kong-listed insurer jumped 22 per cent year on year to a record US$3.45 billion, it said in a statement to the Hong Kong stock exchange.
The value of new business, a key measure for insurers’ profitability, rose 24 per cent to US$1.85 billion, driven by demand in the mainland and Hong Kong. China new business value surged 55 per cent to US$258 million, while the Hong Kong market jumped 32 per cent to US$619 million.
“Urbanisation, rising disposable income, relatively low levels of social welfare and a rapidly growing middle class continue to provide enormous structural growth opportunities across our markets,” said Mark Tucker, chief executive of the pan-Asian life insurer that operates in 17 markets in the Asia-Pacific region.
The insurer raised its final dividend by 19 per cent to 34 HK cents per share, increasing the full-year payout by 18 per cent to 50 HK cents.
AIA shares have risen 22.5 per cent in the past year, outpacing the 10 per cent increase in the Hang Seng Index.
AIA is the only wholly owned foreign insurer in China, where foreign participants are tightly regulated. AIA raised US$20.5 billion in a 2010 listing in Hong Kong, making it one of the biggest IPOs in the city’s history.
