Update | AIA’s first half profit beats estimates; CEO upbeat on China, Hong Kong growth
Analysts say enthusiasm hasn’t diminished yet for mainland China residents to buy insurance policies in Hong Kong
AIA Group, one of the world’s largest life insurers by market value, posted a 42 per cent increase in net profit during the first half, beating market estimates, as the company’s chief executive continued to offer an upbeat outlook for growth in Hong Kong and mainland China – its two biggest markets.
Following the results release, shares of AIA pulled back Friday from recent gains, down 2 cent to close at HK$59.5. The stock hit a new all-time high on Thursday, up 1.8 per cent to finish at HK$60.7.
Net profit rose 42 per cent year on year to US$2.925 billion in the six months ended May 31 on an actual exchange rate basis, compared with US$2.065 billion in the same period a year earlier, AIA Group said in an exchange filing on Friday. The company collects most premiums in local currencies and reports financial results in US dollars.
On a constant exchange rate basis, net profit increased 44 per cent from the same period a year earlier.
The figure is well above a consensus forecast of US$2.46 billion.
Basis earnings per share were 24.4 US cents, up 41 per cent year on year.