Insurer AIA posts growth in new business value on Hong Kong, China
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AIA has in recent years spent some US$800 million (about S$1 billion) on updating its technology, said its group chief financial officer.
PHOTO: REUTERS
- AIA Group reported 13% growth in new business value for H1 2026, driven by strong sales in Hong Kong, China, and South-east Asia, despite missing analyst estimates slightly.
- The insurer sees continued demand from mainland Chinese visitors and affluent clients, with no tax law changes affecting offshore insurance product purchases, said CFO Garth Jones.
- AIA completed a US$1.7 billion share buyback, announced a 10% interim dividend increase, achieved a record 17.5% operating return on equity, and saved US$200 million through technology upgrades.
AI generated
AIA Group on Aug 20 reported 13 per cent growth in new business value in the first half of 2026, led by strong sales in key markets including Hong Kong and China.
The growth to US$3.21 billion (S$4.08 billion) fell short of the US$3.26 billion median estimate of six analysts compiled by Bloomberg News. Without the exchange rate impact, the insurer’s growth rate would have been 10 per cent.
The firm’s expansion underscored the broader industry trend. Insurers have seen continued demand from both local and mainland clients seeking higher returns amid low interest rates at home.
Investors are gauging the extent of China’s recent tax collection efforts for dividend payouts on offshore insurance products and the impact on Hong Kong’s insurance industry.
In Hong Kong, the largest market for AIA, new business value increased 10 per cent to US$1.17 billion for the first six months on continued demand from the Chinese mainland visitor segment. The metric for China grew 26 per cent to US$937 million.
In South-east Asia, Singapore’s sales climbed 14 per cent to US$294 million, driven by demand in wealth and long-term savings products from both affluent and high-net-worth clients.
Garth Jones, group chief financial officer, said in an interview with Bloomberg News that the insurer continues to see “good demand” from mainland China visitors, despite Beijing’s increasing moves to tax offshore wealth.
“Based on our understanding, there’s no change in the tax laws in China,” he said. “People don’t come to Hong Kong to buy our products for for tax reasons principally.”
The company will pay an interim dividend of 53.9 Hong Kong cents per share, an increase of 10 per cent.
Lee Yuan Siong, group chief executive and president, said in a statement on Aug 20: “As we navigate an extended period of uncertainty, marked by rising global geopolitical tensions, financial market volatility and renewed inflationary pressures, AIA’s core advantages remain as relevant to customers today as they have ever been.”
AIA said it had completed in June the US$1.7 billion share buyback plan that was announced in March. It also reported a record high annualised operating return on equity at 17.5 per cent, up from 15.5 per cent in 2025.
The insurer has made an annual expense saving of US$200 million after investing some US$800 million to update its technology in recent years, Jones said.
The technology developments have helped cut down administrative hours and enabled agents to focus on client services, he said. BLOOMBERG
