AIA records strong growth in 1H, 2018 | Sunday Observer

AIA records strong growth in 1H, 2018

AIA Group Limited (AIA) released its 2018 interim results last week.

In respect of the first six months of 2018, AIA has delivered double-digit growth across our main financial metrics, including very strong growth in value of new business (VONB) of 17 per cent on a constant exchange rate basis and 22 per cent on an actual exchange rate basis, compared with the corresponding six-month period ended June 30, 2017.

Highlights are shown on a constant exchange rate basis below:

Very strong growth in value of new business

* 17 per cent growth in VONB to US$1,954 million

* 24 per cent growth in VONB, excluding the retail IFA channel in our Hong Kong business which had an exceptional performance in the first half of 2017

* Annualised new premiums (ANP) increased by 9 per cent to US$3,252 million

* VONB margin up 4.4 pps to 59.5 per cent

Continued growth in operating profit

* IFRS operating profit after tax (OPAT) up by 14 per cent to US$2,653 million

* Embedded value (EV) operating profit increased by 19 per cent to US$4,152 million

* Operating return on EV (operating ROEV) up by 70 bps to 17.0 per cent

Robust cash flow and resilient capital position

* EV Equity of US$53.6 billion; EV of US$52.0 billion, up US$1.2 billion from 31 December 2017

* Underlying free surplus generation of US$2,497 million, up 11 per cent on a comparable basis

* Free surplus of US$13.7 billion

* Solvency ratio for AIA Co., our principal operating company, of 458 per cent on the HKIO basis

Significant increase in interim dividend

* 14 per cent increase in interim dividend to 29.20 Hong Kong cents per share

Ng Keng Hooi, AIA’s Group Chief Executive and President, said: “AIA achieved a very strong set of results in the first half of 2018 with VONB growth of 17 per cent to US$1,954 million as well as 14 per cent growth in IFRS operating profit. VONB for the period was up 24 per cent when excluding the retail IFA channel in our Hong Kong business which delivered an exceptional growth in the first half of 2017.” 

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