Insurance group sees strong signs of recovery

CEBU, Philippines — Pan-Asian life insurance, AIA Group sees strong signs of recovery, as it posted a resilient financial performance for the six months ended 30 June 2020.

“We saw very strong signs of recovery in new business sales from our markets as containment measures were eased. The growth in operating profit after tax and underlying free surplus generation demonstrates the resilience of our large and growing in-force portfolio and solvency for AIA Co. remains strong. The Board has declared a 5 per cent increase in the interim dividend following our prudent, sustainable and progressive dividend policy allowing for future growth opportunities and the financial flexibility of the Group,” said Lee Yuan Siong, AIA’s Group Chief Executive and President, in a statement.

The Hongkong-based insurance and financial services group, reported a strong and robust with 11 per cent growth in underlying free surplus generation and the solvency ratio on the HKIO basis for AIA Company Limited (AIA Co.) was 328 percent.

Operating profit after tax (OPAT) increased by 5 per cent to US$2,933 million, reflecting the quality and growth of in-force business in the middle of pandemic.

  While value of new business (VONB) of US$1,410 million was lower in the first half, the Group has delivered very strong month-on-month VONB growth in markets as they emerged from COVID-19 containment measures.

  “I am extremely proud of the way AIA’s businesses have responded with speed and compassion to the challenges brought by the COVID-19 pandemic, and provided uninterrupted support to our customers and communities. I am grateful for their dedication, collaboration and contributions in these unprecedented times,” added Lee.