Insurance firm builds momentum for 2011

Thursday, April 21, 2011

AIA GROUP Ltd., the largest independent publicly listed pan-Asian life insurance group in the world, has posted US$ 2.7 billion in net profit, jumping by 54 percent year on year in terms of International Financing Reporting Standards (IFRS), according to the Group’s 2010 audited consolidated financial results ending November 30 last year.

The news on AIA’s strong financial performance in 2010 was welcomed by Philam Life, the largest life insurance company in the Philippines, which is part of the AIA Group.

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Philam Life President and CEO Mr. Trevor Bull said, “More than financial strength, the success of the AIA Group speaks well of how dedicated its people are – its management team, staff, agents, and business partners in all the 15 member companies in the region, including Philam Life. We are proud to be part of this strong and dynamic life insurance organization.”

AIA Group also reported strong growth in Value of New Business (VONB), up 22 percent in 2010 to US$667 million while its embedded value was up 18 percent to US$21 billion and its operating profit before was also up 18 percent to US$2.1 billion.

Shareholders’ equity went up by US$4.7 billion to US$19.6 billion and the company’s total assets increased to US$107.9 billion from US$90.7 billion, the financial results showed.

Free surplus, a distinguishing feature of AIA, increased 24 percent to US$5 billion at the end of 2010, according to the 2010 performance.

Mark Tucker, AIA Group Chief Executive and President, described 2010 as “a very successful year” for the AIA Group notwithstanding some notable distractions. “Our 2010 results are a significant improvement over 2009 on all key measures, with excellent growth in profitability, driven by a strong existing in-force book of business and a material uplift in new business growth, particularly in the fourth quarter,” he said.

“Our very successful IPO marked a new beginning for AIA which, together with changes we implemented in the second half of 2010, has helped to unleash the potential of our business and create strong growth momentum going into 2011,” he added.

Tucker said the AIA Group’s focus for 2011 will be on key strategic priorities that will deliver sustainable profitable growth and create value for shareholders. These include strengthening agency and partnership distribution channels, increasing their productivity, enhancing products and customer experience, and transforming the organization to be more nimble and customer-focused.

“The AIA Group’s outstanding customer franchise, well-respected brand, 100% ownership in 14 of our 15 markets, very strong financial profile, product expertise and distribution reach combine to give us a unique and advantaged platform for future growth,” he said.

“We will pursue these growth opportunities with a strengthened leadership team, and more efficient organisational structure in place. As the only pan-Asian listed insurance group focused 100% on this fast-growing region, AIA is very well positioned to win.”

In the Group’s Other Markets (Australia, Indonesia, New Zealand, the Philippines, Taiwan and Vietnam), AIA delivered a strong VONB growth of 28 percent, demonstrating its strong position and diversified footprint across the region. (PR)