AIA profit rises 89pc to beat market target
Surge in new business amid weakness in the US dollar helps insurer post US$3 billion gain
AIA Group, the third-largest Asian-based insurer by market value, reported a higher-than-expected 89 per cent growth in net income last year, helped by investments, stronger Asian currencies and product improvements.
Net income rose to US$3 billion, or 25.1 US cents a share, in the year to November from US$1.6 billion, or 13.3 US cents a share, a year earlier, the company said in a statement to the stock exchange yesterday. The figure beat the US$2.7 billion average estimate of 12 analysts.
Value of new business rose 27 per cent to US$1.19 billion, the first time it topped US$1 billion in at least four years. Chief executive Mark Tucker has been focusing on the indicator of projected future profitability of new policies after AIA was hurt by financial trouble at former parent American International Group, and Prudential's attempted takeover in 2010.
"We have built the momentum," Tucker said. "There is a lot more to come."
We have built the momentum. There is a lot more to come
AIA's share price has risen 60 per cent since it became a public company in October 2010, beating the 8.8 per cent slide in the Hang Seng finance sub-index, as Tucker rejuvenated new policy sales and expanded in Southeast Asian markets. The stock has trailed the gauge since the middle of November last year, ahead of AIG's December sale of its remaining stake.