AIA Group's New-Business Value Surges 37%

HONG KONG—AIA Group Ltd.'s new-business value, a key measure of insurers' profitability, rose 37% in the first half of the year, fueled by growth in the company's Hong Kong and China businesses.

AIA, the world's fourth-largest insurer by market capitalization, said its new-business value rose to $1.26 billion, up from $959 million a year ago when adjusted for currency fluctuations, in the six months ended May 31. The company on Thursday announced a 17% increase in its interim dividend to 21.9 Hong Kong cents per share.

Chief Executive Mark Tucker said on a call with reporters Thursday that Asia remains the "sweet spot of the insurance world." On the prospect of the Federal Reserve raising interest rates later this year, Mr. Tucker said, "Whatever happens with the Fed, we'll be in a strong position."

Net profit fell 2% to $2.07 billion when adjusted for currency fluctuations, due to movements in the company's stock-market and real-estate investments.

AIA, the only wholly foreign-owned insurer in China, said its new-business value had grown 56% there to $278 million. In Hong Kong it grew 60% to $537 million. Analysts had expected growth in both of those markets, with Chinese mainlanders helping drive sales of insurance products in Hong Kong.

AIA, once part of U.S. insurer American International Group Inc., operates in 18 markets across the Asia-Pacific region.

Write to Julie Steinberg at [e-mail]

(END) Dow Jones Newswires

July 27, 2016 23:05 ET (03:05 GMT)

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