AIA’s operating profits rise by 5%

Written by Adam Cadle

20/08/2020

AIA’s operating profit after tax (OPAT) increased by 5% to $2,933m in H1 2020, reflecting what it described as the “quality and growth of in-force business”.

Value of new business (VONB) of $1,410m fell 37%, however the group has delivered very strong month-on-month VONB growth in markets as they emerged from COVID-19 containment measures.

The group’s financial position remained strong and robust with 11% growth in underlying free surplus generation and the solvency ratio on the HKIO basis was 328%

The board has declared a 5% increase in the interim dividend to 35.00 Hong Kong cents per share. This reflects both the group’s strong financial position and the unprecedented macroeconomic and capital markets environment caused by COVID-19.

Total assets increased by $7,072m to $291,204m at 30 June 2020, compared with $284,132m at 31 December 2019 due to positive net revenues and mark-to-market gains from debt securities.

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