AIA Group has reported a remarkable 53% increase in net profit for the first half of 2024, reaching US$3.31 billion, surpassing analysts' expectations of US$3.27 billion. This marks the company's best first-half profit in five years. The operating profit after tax also saw a rise of 7%, totaling US$3.39 billion. Additionally, the value of new business surged by 25% to US$2.46 billion, with Hong Kong's value of new business (VONB) increasing by 26% to US$858 million [22c2b5e3].
The surge in AIA's profits can be largely attributed to a significant influx of mainland Chinese customers purchasing insurance policies in Hong Kong. Many mainland clients are opting for these policies as a hedge against the weakening yuan, reflecting a broader trend of increased cross-border financial activity. In the first half of 2024, Hong Kong welcomed 21 million travelers, marking a 64% increase from the previous year, which further bolstered AIA's performance [22c2b5e3].
AIA's CEO, Lee Yuan Siong, highlighted the company's strong financial position and the growth opportunities available in Asia. The company declared an interim dividend of HK$0.445 per share, representing a 5.2% increase from the previous year [22c2b5e3].
This impressive profit growth comes at a time when the insurance market in Hong Kong is experiencing a resurgence, driven by the demand from mainland Chinese buyers seeking to secure their financial futures amid economic uncertainties. AIA's robust performance underscores the potential for further expansion in the region as travel and cross-border commerce continue to rebound [22c2b5e3].