Mainland Chinese investors still buying Hong Kong insurance policies after tax pivot: AIA

Insurer sees value of new business rise 10 per cent year on year to record high of US$3.21 billion

AIA Group, Asia’s largest independent publicly listed life insurance group, reported 11 per cent growth in first-half operating profit, driven by strong growth of Hong Kong and mainland China sales and expansion in Southeast Asian markets.

Operating profit after tax on a constant currency basis reached US$4.16 billion, with earnings per share rising to 39.95 US cents, according to a filing to the Hong Kong stock exchange on Thursday. The result exceeded the US$3.94 billion consensus estimate of analysts.

Value of new business (VONB) – a key indicator of sales momentum and future profitability – grew 10 per cent year on year to record high of US$3.21 billion, compared with consensus expectations of US$3.25 billion. Out of the 18 markets across Asia-Pacific in which AIA operates, 17 reported growth with only Thailand reporting a decline of new business.

“We saw continued demand in the Chinese mainland visitor segment with VONB broadly stable against a high comparative in 2025 and increasing quarter-on-quarter in the first half,” said Lee Yuan Siong, group chief executive and president in the exchange filing.

“Asia remains the most compelling growth opportunity for life and health insurance,” he said. “Powerful structural tailwinds across the region continue to create substantial demand for our professional advice and differentiated products and underpin the exceptional long-term prospects for AIA’s business.”

The Hong Kong-based insurer declared an interim dividend of 53.9 HK cents per share, a 10 per cent increase from 49 HK cents a year earlier.