INSURER AIA Group posted a 10-percent jump in half-year value of new business (VONB) on Thursday, boosted by growth across all distribution channels and segments, excluding Thailand.
AIA’s VONB, a measure of expected profits from new premiums and a key barometer for future growth, came in at $3.21 billion on a constant exchange rate basis.
That was in line with the absolute VONB consensus estimate of $3.2 billion, compiled by the company.
All reportable segments delivered positive growth except Thailand, which had an exceptionally strong prior-year comparative, the company said.
Excluding Thailand, the company’s half-year VONB grew by 14 percent year on year on a constant currency basis.
The company’s Hong Kong business, one of the group’s largest contributors to profit, logged a 10-percent increase in VONB for the six-month period, on strong demand from both domestic customers and mainland Chinese visitors.
AIA’sVONB margin remained strong at 57.1 percent in the first half, stable compared with the first half of 2025.
AIA said a better product mix lifted Hong Kong’s first-half VNOB margin, but this was offset by a shift to lower-margin participating products in Mainland China and weaker margins in Thailand following unusually strong prior-period medical insurance sales.
“Asia remains the most compelling growth opportunity for life and health insurance,” AIA Group CEO and President Lee Yuan Siong said.
He added that structural tailwinds across the region were boosting demand for the insurer’s products, underpinning long-term growth prospects.
AIA operates in 18 Asian markets, including Mainland China, Singapore, Malaysia, Indonesia, the Philippines and South Korea, as well as Australia, New Zealand, and a joint venture in India.
Earlier this month, Hong Kong-listed insurers faced pressure after reports that Chinese tax authorities had begun levying a 20-percent personal income tax on returns from Hong Kong insurance policies, raising concerns that tighter scrutiny of offshore investments could dampen demand from mainland customers.
AIA declared an interim dividend of 53.90 HK cents ($0.069) per share, up 10 percent from the previous year.
