AIA first-half profit up 11%, driven by strong growth in Hong Kong and Asia sales
AIA Group reported an 11% increase in first-half operating profit, bolstered by strong sales in Hong Kong and Southeast Asia. Despite new Chinese regulations on offshore investments, the insurer noted that demand from mainland Chinese visitors remains stable.
Why it matters
AIA's performance serves as a key indicator for the resilience of the Hong Kong insurance market amidst tightening financial oversight from Beijing.
AIA Group, Asia’s largest independent, publicly listed life insurance group, says that Beijing’s recent pivot on policies and tax issues relating to offshore investment has not hurt the sales to mainland Chinese visitors in Hong Kong, with purchases steady from May to August, according to a senior executive.
“Since May, when news was released regarding controls and tax levies, we haven’t seen any change in sales to mainland visitors to Hong Kong. The sales to these clients from May to August have remained stable,” said Jacky Chan, AIA Group’s regional CEO and group chief distribution officer, on Thursday.
“Sales to mainland Chinese customers in Hong Kong in the second quarter were even better than the first, with June being the best month,” he added.
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