AIA Singapore has announced a 27% increase in its Value of New Business (VONB) for the first half of 2024, rising to US$219 million from US$173 million in the same period last year, based on constant exchange rates. This growth is attributed to strong performances across all distribution channels and increased sales of long-term savings products.

Wong Sze Keed, CEO of AIA Singapore, stated, “Our business performance in H1 2024 demonstrates substantial growth across key metrics, including VONB, annualized new premiums, total weighted premium income, and operating profit after tax.”

Targeting the Wealth Market
AIA Singapore remains focused on the wealth market, having launched a new product last year aimed at affluent clients. This product offers access to global fund managers and is part of the company’s broader strategy to tap into long-term savings opportunities.

In April, AIA launched the AIA Wealth Centre, which provides comprehensive wealth management services to high-net-worth individuals in Singapore and the wider region.

Performance Highlights
The company’s insurance agent segment reported a 31% increase in VONB, driven by enhanced productivity and a rise in active agents utilizing digital tools. New recruitment also saw a 19% increase, with 499 new consultants joining the firm in H1 2024, primarily consisting of recent graduates and mid-career switchers.

The recruits received training in product knowledge, professional development, and the use of AIA’s digital tools. Post-training, they have the option to specialize in various advisory roles, including high-net-worth advisory and corporate solutions.

Despite the positive results, AIA Singapore’s VONB margin dipped 12.6 percentage points to 52.4% due to a shift in the product mix towards lower-margin long-term savings products. Annualized new premiums (ANP) soared 57% year-on-year to US$417 million, while total weighted premium income increased by 12% to US$2.2 billion.

Operating profit after tax edged up 2% to US$343 million, influenced by lower investment income related to surplus assets.

Group-Level Performance
At the group level, AIA reported a 25% increase in VONB for H1, totaling US$2.5 billion, with a VONB margin of 53.9%. ANP rose 17% to US$4.5 billion, and operating profit after tax grew 7% to US$3.4 billion. The group declared an interim dividend of HK$0.445 per share, up from HK$0.4229 previously.

Lee Yuan Siong, AIA’s group CEO and president, emphasized that the group will continue leveraging its competitive advantages to seize growth opportunities and enhance long-term shareholder value.