AIA Group Limited (AIA) recently announced its 2018 interim results.

Throughout the first six months of 2018, AIA registered double-digit growth across all of its main financial metrics, including very strong growth in value of new business (VONB) of 17 percent on a constant exchange rate basis and 22 percent on an actual exchange rate basis, compared with the corresponding six-month period ending on June 30, 2017.

It experienced very strong growth in value of new business. It saw 17 percent growth in VONB to US$1.95 million; 24 percent growth in VONB, excluding the retail IFA channel in its Hong Kong business, which had an exceptional performance in the first half of 2017; annualized new premiums (ANP) that increased by 9 percent to $3.25 million; and a VONB margin increase of  4.4 percent to 59.5 percent.

AIA also had continued growth in operating profit. IFRS operating profit after tax (OPAT) increased 14 percent to $2.65 billion. Its embedded value (EV) operating profit increased 19 percent to $4.15 billion and its operating return on EV (operating ROEV) increased 70 basis points to 17.0 percent

A robust cash flow and resilient capital position also characterized the first half of 2018. AIA had EV Equity of $53.6 billion, up $1.2 billion from an EV of $52 billion as of Dec. 31, 2017. It had underlying free surplus generation of $2.49 billion, up 11 percent on a comparable basis. It also had a free surplus of US$13.7 billion. The solvency ratio for AIA Co., its principal operating company, was 458 percent on the HKIO basis.

There was a significant increase in interim dividend in the form of a 14 percent increase in interim dividend to 29.20 Hong Kong cents per share.

According to Ng Keng Hooi, AIA’s group chief executive and president, AIA continues to hold a uniquely advantaged position stemming from the significant competitive advantages it has created over its long history in Asia.

“The quality of our results comes from our diverse and balanced platforms – across distribution, product and geography. Our clear strategy continues to work well as our experienced team of outstanding people collaborates to harness the enormous growth opportunities that the region presents,” Hooi said.

“We remain confident that we will continue to execute our strategic priorities to realize AIA’s full potential as we help millions of people to live healthier, longer, better lives.”

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