The headquarters of AIA in Central, the financial heart of Hong Kong pictured against a clear blue sky.

The headquarters of AIA in Central, the financial heart of Hong Kong pictured against a clear blue sky.

Results were good, growth were strong for 2014

AIA Group (1299.HK), the third-largest Asia- based insurer by market value, posted a bigger-than-expected 22 percent increase in full-year profit, led by business growth in the mainland and Hong Kong. Have research house expected AIA’s annual results for the year of 2014 to sustain a robust performance with an estimated VNB growth rate of 21.4%.

Net income climbed to US$3.45 billion, in the 12 months through November, from US$2.82 billion, a year earlier, the insurer said yesterday. The value of new business, a measure of future profits, jumped 24 percent to US$1.85 billion.

AIA beated estimates for the third time in the past five full years. Shares of the insurer was little changed, closing at HK$45.75 .

“The results were good,” said Andrew Sullivan at Haitong International Securities in Hong Kong. Operating profit after tax, which excludes US$508 million of net stock investment gains, rose 16 percent last year to US$2.9 billion.

The insurer sells policies in local currencies in 17 markets. Operating profit in China, where AIA runs the only fully foreign-owned life insurer, rose 38 percent. The value of new business in China for the insurer, which traces its roots to Shanghai more than 90 years ago, jumped 55 percent to US$258 million. The country is now the firm’s fourth-largest market.

The China opportunity is a phenomenal one,” chief executive Mark Tucker said, adding that the size of AIA’s China business has quadrupled in the past four years.

AIA’s new business in Hong Kong surged 32 percent to US$619 million, while operating profit rose 17 percent to US$905 million, the largest among its markets.

Source: The Standard Finance

More Related News: