AIA profits up 89% in 2012

MANILA, Philippines - AIA has reported a net profit of over $3 billion in 2012, up 89 percent from the previous year, while the value of its new business grew 27 percent from $932 million in 2011 to $1.188 billion. 

Last year, the biggest contribution of new business came from its Hong Kong operations amounting to $366 million, followed by Thailand with new business valued at $287 million.

New business premiums from Singapore amounted to $226 million and China contributed $124 million. Korea and Malaysia had similar values $68 million apiece of new business.

Operating profit after tax expanded 12 percent to $2.15 billion last year from $1.9 billion in 2011 while its solvency ratio stood at 353 percent.

Last year, AIA completed two significant acquisitions in Malaysia and Sri Lanka that have positioned AIA as number 1 and 2, respectively, in these important growth markets. 

AIA Group chief executive and president Mark Tucker said that the leading pan-Asian insurer has strong positions in each of its 16 markets throughout the Asia-Pacific region. 

“Our continuing success stems from the hard work of our many thousands of dedicated and professional employees, agents and intermediaries, coupled with a deep understanding of the savings and protection needs of consumers in the Asia-Pacific region,” Tucker said. AIA Group Ltd. and its subsidiaries (collectively AIA) comprise the largest independent publicly listed pan-Asian life insurance group.

It has operations in 16 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 92 percent subsidiary in Sri Lanka and a 26 percent joint-venture in India. 

In the Philippines, the AIA is represented by its subsidiary – the Philippine American Life and General Insurance Co. (Philam Life). 

In 2011, Philam Life reported total premium income of P13.5 billion while BPI Philam – its joint venture bancassurance company with the Bank of the Philippine Islands (BPI) – reported total premium income of P6.4 billion.