AIA says acquisitions in Sri Lanka, Malaysia boost value
Thursday, 1 August 2013 01:18
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AIA in releasing results for six months ended on 31 May said this week that its acquisitions in Sri Lanka and Malaysia have boosted value.
The highlights of AIA’s performance in the first half of 2013 include:
Record value of new business (VONB) – AIA’s key performance measure: 26% growth in VONB to US$ 645 million; 29% increase in annualised new premium (ANP) to US$1,527 million; VONB margin of 41.6%.
Sustained focus on value creation: 15% growth in embedded value (EV) operating profit to US$1,907 million; EV equity up 5% to US$ 33.3 billion, including goodwill and other intangibles.
Strong IFRS operating profit and capital position: IFRS operating profit after tax (OPAT) up 17% to US$ 1,268 million; Net profit up 34% to US$ 1,934 million; solvency ratio of 427% on the Hong Kong Insurance Companies Ordinance basis.
The Board of Directors has declared an interim dividend of 13.93 Hong Kong cents per share, representing an increase of 13% over the previous year and reflecting AIA’s prudent, sustainable and progressive dividend policy.
Commenting on the results, Mark Tucker, AIA’s Group Chief Executive and President, said: “AIA has delivered another excellent set of results over the first half of the year with a 26% increase in value of new business – our key performance measure. The strong financial performance reflects our continuing growth momentum and demonstrates AIA’s consistency in our ability to deliver outstanding results through the relentless execution of our proven growth strategy.
“AIA operates from an advantaged position through our long-standing scale and exclusive focus on the dynamic Asia-Pacific region. We continue to see the power of our Premier Agency strategy improving both the recruitment and productivity of our high-quality agents. At the same time, our partnership and group insurance businesses made a strong contribution to the Group’s profitability. During the first half, we also launched a range of exciting new products across our markets designed to help our customers address their regular savings and protection needs.
“We remain confident in AIA’s significant future growth opportunities. We will continue to capitalise on our competitive advantages, including our distribution franchise, product innovation and trusted brand position as well as the strength of our balance sheet, to meet customers’ needs throughout the Asia-Pacific region and to generate sustainable value for our shareholder.”
Gordon Watson, Regional Chief Executive, AIA, and Chairman of AIA Sri Lanka said: “AIA is the second largest life insurer in Sri Lanka (as per IBSL 2011 Annual Report) and we are very optimistic about our ability to grow our business here. We have a high quality and experienced team of employees, agents and our partners here, and we look forward to continuing to serve our customers and to making a significant contribution to advancing Sri Lanka’s life insurance sector over time.”
