Protect your loved ones’ future from life’s uncertainties
HONG KONG, 23 August 2019 – AIA Group Limited (“AIA”; or the “Company”; stock code: 1299) delivered an excellent performance in the six months ended 30 June 2019 with double-digit growth across our main financial metrics. Value of new business (VONB) increased by 20 per cent on a constant exchange rate basis, compared with the corresponding six-month period ended 30 June 2018.
Growth rates are shown on a constant exchange rate basis below:
Ng Keng Hooi, AIA’s Group Chief Executive and President, said:
“AIA has delivered double-digit increases in our main financial metrics in the first half of 2019, continuing our consistent track record of growth. Value of new business increased by 20 per cent to a record half-year result of US$2,275 million for the Group. We also generated a 12 per cent increase in operating profit after tax and 15 per cent growth in underlying free surplus generation.
“The Board has declared a 14 per cent increase in interim dividend for 2019. This reflects our continued strong financial performance and demonstrates our confidence in the outlook for the Group.
“AIA’s wholly-owned business in China was our fastest growing market segment with excellent growth of 34 per cent in VONB. I am also pleased that our new sales and service centres in Tianjin and Shijiazhuang, Hebei commenced operations at the end of July. Our business in Hong Kong once again performed strongly with a 19 per cent increase in VONB, benefiting from broad-based growth across customer segments and distribution channels.
“VONB growth of our operations in Thailand and Malaysia was supported by our sustained focus on enhancing agent professionalism and developing our strategic bancassurance partnerships. Within our Other Markets, 17 per cent growth in VONB was driven by strong performances in Australia, the Philippines and Vietnam.
“AIA’s proprietary agency distribution delivered 21 per cent growth in VONB as our Premier Agency strategy achieved a further increase in active agents and productivity. I am delighted that AIA continues to rank number one in the world for Million Dollar Round Table members with more than 12,000 registered members. VONB from our partnership business increased by 17 per cent, supported by excellent growth of our multiple bancassurance partnerships across the region.
“In June, AIA’s brand was recognised as Asia’s Number One Insurance Brand*. Our purpose-led brand promise, Healthier, Longer, Better Lives, exemplifies our commitment to become a lifelong partner to our customers. The ongoing success of AIA Vitality demonstrates our focus on customer centricity and membership of our wellness programmes exceeded 1.5 million at the end of June.
“AIA’s excellent performance in the first half of 2019 is a clear reflection of our consistent focus on executing our strategic priorities and is underpinned by our significant competitive advantages in the Asia-Pacific region. While we are not immune to market volatility, our diversified, robust and high-quality business model continues to place AIA in an advantaged position in the Asian life insurance markets where growth fundamentals remain resilient.
AIA Singapore’s Business Results in the First Half of 2019
AIA Singapore continued to deliver profitable performance through our increased focus on regular premium business.
AIA Singapore maintained its leading agency position through continued execution of our Premier Agency strategy. In the first half of 2019, we made further investments in our next generation digital platforms to improve engagement with our customers. This supported an increase in the number of active agents, which was offset by lower sales of single premium business.
Our exclusive partnership with Citibank delivered solid growth in VONB, supported by a strong performance from the bank’s domestic mass affluent and retail customer segments. We continue to optimize our strategic partnership with Citibank, with a focus on mitigating the protection and retirement gaps of our customers.
With the strong performance of our corporate solutions channel, AIA Singapore remains the leader in Singapore’s group insurance market in terms of both new and in-force premiums. Serving over 1.2 million employees and their dependents, we provide access to affordable and comprehensive healthcare whilst advocating workplace wellness and leveraging technology for the best employee experience.
Patrick Teow, Chief Executive Officer of AIA Singapore, said:
“Despite a challenging market environment, AIA Singapore reported profitable performance and remains committed to investing in our digital transformation to better serve our customers.
As we celebrate AIA’s Centennial in 2019, we are thankful for the trust, support and loyalty of our customers over the years and will continue to keep our customers and their families at the heart of everything we do, enabling them to live healthier, longer, better lives.”
AIA Singapore continues to offer innovative products and initiatives to cater to the diverse needs of customers, to help bridge the underinsurance gap in Singapore. Key launches in 2019 include:
A testament to our industry leadership, AIA Singapore was declared the Insurance Company of the Year at the 4th Asia Trusted Life Agents & Advisers Awards presentation in 2019, where we edged out about 400 nominations from 15 markets. Attaining the award for the second time, we are recognised as the life insurance company with a remarkable agency force that sets high professional standards, and a company that continues to invest in and support its agency force to thrive in the changing insurance landscape.
AIA Singapore continues to make a real, positive impact on the health and wellbeing of individuals and families in Singapore through initiatives that encourage the community to get active and live healthy lifestyles. This includes the successful completion of the inaugural AIA GLOW Festival, Fitness Fest by AIA, and AIA Charity Golf. Through the various initiatives throughout our Centennial year, we have also raised over S$500,000 to support our adopted charity, Children’s Wishing Well.
- End -
+852 2832 1398
+852 2832 4704
+852 2832 4704
+852 2832 6178
+65 6530 0863
Key Performance Highlights
New Business Performance by Segment
This document contains forward-looking statements relating to AIA Group Limited that are based on the beliefs of the Group’s management as well as assumptions made by and information currently available to the Group’s management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. When used in this document, the words “will”, “future” and similar expressions are intended to identify forward-looking statements. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements.
This document is for information purposes only and does not constitute an invitation or offer by any person to acquire, purchase or subscribe for securities. This document is not, and is not intended to be, an offer of securities for sale in the United States. The securities of AIA Group Limited have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the U.S. Securities Act. There is not, and is not intended to be, any public offering of such securities in the United States.
* Source: Campaign Asia, a major regional marketing publication, June 2019