Insurer AIA posts growth in new business value on Hong Kong, China
The growth was led by strong sales in key markets including Hong Kong and China.
AIA Group reported a 13% increase in new business value in the first half of 2026, reaching $3.21 billion (S$4.08 billion). This growth, however, was slightly below the $3.26 billion median estimate from six analysts. Without the impact of currency fluctuations, the insurer's growth rate would have been 10%. The company's expansion highlights the ongoing demand from both local and mainland clients seeking higher returns due to low interest rates at home.
In Hong Kong, AIA's new business value rose by 10% to $1.17 billion, driven by strong demand from the Chinese mainland visitor segment. China's new business value expanded by 26% to $937 million. In Singapore, sales grew by 14% to $294 million, boosted by demand for wealth and long-term savings products from affluent and high-net-worth clients.
AIA's CFO, Garth Jones, stated that the company continues to see "good demand" from mainland China visitors, despite Beijing's increasing tax efforts on offshore wealth. The company paid an interim dividend of 53.9 Hong Kong cents per share, a 10% increase. CEO Lee Yuan Siong emphasized that AIA's core advantages remain relevant amid global uncertainties, including geopolitical tensions, financial market volatility, and inflationary pressures.
The company completed a $1.7 billion share buyback plan in June and reported a record high annualized operating return on equity of 17.5%, up from 15.5% in 2025. This was achieved by saving $200 million annually after investing $800 million in technology updates, which have streamlined administrative processes and enabled agents to focus on client services.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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