AIA Group, the largest insurer in the Asia-Pacific region, reported a record-breaking financial performance in 2024, driven by a surge in new business from Hong Kong and Southeast Asia. The company’s net profit soared 82% from the previous year to US$6.84 billion, or 62 US cents per share, surpassing market expectations of US$6.345 billion, according to data compiled by Bloomberg.
Hong Kong’s new business value (VONB), a key metric of future growth, rose 23% year-on-year to a record US$1.8 billion, largely fueled by increased policy purchases from mainland Chinese visitors seeking higher investment returns and better health protection. In mainland China, VONB increased by 20% to US$1.2 billion, as demand for AIA’s insurance products remained strong.
The influx of mainland Chinese visitors to Hong Kong played a crucial role in the insurer’s growth. With 44.5 million travelers arriving in Hong Kong last year, up 31% from the previous year, the trend of purchasing insurance policies in US dollars or Hong Kong dollars continued to gain traction. Many mainland customers see these policies as a hedge against the depreciation of the yuan, which has weakened 15% against the US dollar over the past two years.
AIA’s strong performance extended beyond Hong Kong and mainland China, with its three major markets in Southeast Asia—Thailand, Singapore, and Malaysia—also reporting robust double-digit growth. Thailand and Singapore both recorded a 15% increase in VONB, while Malaysia saw a 10% rise, reflecting the insurer’s successful expansion efforts in the region.
To reward shareholders, AIA announced a new US$1.6 billion share buyback program, complementing the US$12 billion in repurchases completed in February. The company also proposed a final dividend of HK$1.3098 per share, bringing the total annual dividend payout to HK$1.7548 per share, a 9% increase from the previous year.
Despite the positive earnings report, AIA’s stock fell 2.4% to HK$61.30 in early trading after the announcement. Nevertheless, CEO Lee Yuan Siong expressed confidence in the insurer’s long-term growth potential, emphasizing that AIA remains uniquely positioned to capitalize on structural opportunities in the life and health insurance market. The company’s strategy and execution continue to drive its exceptional business prospects for the future.
