(Reuters) -AIA Group reported a 14% increase in its first-half value of new business (VONB) on Thursday, driven by strong demand for its insurance products in the key markets of China and Hong Kong.
The insurer said VONB, a key barometer that gauges expected profit from new premiums, was $2.84 billion on a constant exchange rate basis for the six months ended June 30, compared with $2.46 billion a year ago.
The Hong Kong market was the biggest contributor, posting a 24% increase in new business value to $1.06 billion, with sales from both domestic customers and those visiting the territory from mainland China showing strong double-digit growth.
Mainland China, AIA’s second-largest market in terms of new sales, reported a 10% increase in VONB during the first half.
Besides mainland China and Hong Kong, AIA’s 18 markets in Asia include Thailand, Singapore, Malaysia, Indonesia, the Philippines and South Korea. It also operates in Australia and New Zealand and has a joint venture in India.
The company declared an interim dividend of 49 Hong Kong cents per share, 10% higher than a year ago.
(Reporting by Himanshi Akhand in Bengaluru; Editing by Shreya Biswas)
