AIA establishes variable capital company in Singapore

AIA Group announced on Friday that it has established AIA VCC, its first variable capital company (VCC), which will be managed by AIA Investment Management.

The Hong Kong-listed insurer is now exploring how the recently introduced VCC framework can support AIA's investment programme, with a focus on balance sheet exposure to specialist and alternative investment strategies.

Singapore's Variable Capital Companies Act, which took effect in January last year, has seen positive responses with 109 funds set up within the first seven months. It has also encouraged the growth of single family offices due to its tax benefits and access to Singapore's double-tax treaty network.

According to Alain Esseiva, chief executive officer and managing director of Alpadis Group, the launch of VCCs could help Singapore become the "Luxembourg of Asia".