AIA Group has announced its results for the first half of 2021, bannered by a 22% growth in value of new business (VONB) to US$1.8 billion (SG$2.45 billion).
According to the Hong Kong-headquartered insurer, all of its reportable segments have achieved double-digit VONB growth on a like-for-like basis, driven by strong performance of its agency distribution channel and growing demand for protection products.
AIA China’s VONB increased by 20%, and it remained the largest contributor to the group’s total new business. The Hong Kong business achieved 16% growth in VONB, despite restrictions on travel for Mainland Chinese visitors. For its Singapore operations, VONB grew by 32% to US$176 million.
The group’s operating profit after tax (OPAT) grew by 5% to US$3.18 billion.
“I am very pleased that VONB exceeded the pre-pandemic levels of the first half of 2019 for each of our reportable segments except Hong Kong, where travel restrictions continue to affect sales to Mainland Chinese visitors,” said Lee Yuan Siong, AIA Group chief executive and president. “Our growing high-quality in-force portfolio supported growth in both OPAT and [underlying free surplus generation]. EV equity and shareholders’ allocated equity reached record highs, and our very strong financial position is reflected in a significant increase in free surplus and a group [local capital summation method] cover ratio of 412%.”
According to Lee, the strong performance of AIA’s agency channel was demonstrated by growth in agent population and productivity compared to the first half of 2020.
“We have delivered a 25% increase in our registered Million Dollar Round Table (MDRT) members to more than 16,000,” he said. “This is our seventh consecutive year of achieving the largest number of registered MDRT members globally.”
