AIA Singapore posts 24% rise in expected profits to US$341m

INSURER AIA Singapore on Thursday posted a 24 per cent rise in value of new business (VONB), which is a measure of expected profits from new premiums, to US$341 million in 2015, from a year ago, on a constant exchange rate basis.

Its VONB margin went up 11.1 percentage points to 72.4 per cent in 2015.

Annualised new premiums (ANP), used to measure new business sales, grew 5 per cent year on year to US$471 million.

Total weighted premium income (TWPI), a gauge for the insurer's longer-term business volumes, rose 6 per cent in 2015 to US$2.28 billion.

Similarly, operating profit after tax climbed 9 per cent to US$430 million.

Patrick Teow, AIA Singapore's chief executive, attributed the strong business performance to the insurer's continuous focus on increasing financial services consultants' productivity, expanded partnerships with banks and brokers, and leadership in its group insurance business.

On a group level, AIA Group posted a 26 per cent rise in VONB for the full year to US$2.2 billion, on a constant exchange rate basis.

VONB margin rose 4.6 percentage points to 54 per cent, while ANP climbed 14 per cent to US$4 billion.

The world's second-largest life insurer which is based in Hong Kong, proposed a total dividend of 69.72 Hong Kong cents (12.58 Singapore cents) a share, up 39 per cent.

Said Mark Tucker, the group chief executive and president: "Our strong results are once again the outcome of our robust and highly diversified business model with the right distribution platforms and product portfolios in the right markets, backed by our market-leading brand and financial strength."

Despite the recent volatility and uncertainty in global financial markets, Asia remains the most attractive and dynamic region for life insurance in the world, he said, adding that the life insurance industry continues to benefit from significant structural economic and demographic trends, rapid urbanisation and growth in disposable incomes across the region.