Strong growth in local market business has contributed to a record set of results for AIA Group internationally, according to financial results for the year ended 30 November 2011.
AIA Australia announced a 21 per cent growth in premiums and a 27 per cent growth of total assets which it said was driven by its investment in partner- and customer-focused solutions.
The group pointed to a recent Plan For Life report analysing life insurance risk premium inflows and sales for the year ended September 2011 that showed AIA Australia is dominating the group risk market with a quarter of total market share and $831 million of in-force premiums.
However the Plan For Life report showed AIA Australia lagged all other major insurers in terms of individual risk lump sum sales and inflows – an area the group is looking to improve according to AIA Australia chief distribution and marketing officer Damien Mu.
Mu points out that AIA’s individual lump sum risk inflow growth of 20.6 per cent was more than double that of the overall market growth of 10.1 per cent, although from an admittedly low base.
The retail market is a priority growth area for AIA Australia, which had increased its retail team in the front and back office by a headcount of 15 above normal growth in the past year, Mu said. The group would continue to look to strengthen its retail product proposition, he added.
AIA Group overall saw a 40 per cent increase in value of new business (VONB), which the group described as its key performance measure, to US$932 million. AIA Group’s VONB margin grew from 32.6 per cent to 37.2 per cent.
There was a 22 per cent increase in annualised new premiums to US$2,472 million and embedded value of US$27,239 million, up from US$24,748 million at 30 November 2010.
Operating profit after tax increased 13 per cent to US$1,922 million and the solvency ratio on the Hong Kong Insurance Companies Ordinance basis more than tripled, which AIA said reflected a very strong capital position.
The group’s final dividend of 22 Hong Kong cents per share recommended brought the total dividend for the 2011 financial year to 33 Hong Kong cents per share.
