2019-09-18 08:30Financial Performance - New business value increased by 20% to $2.275 billion compared to the same period in 2018[3]. - Operating profit after tax rose by 12% to $2.898 billion[3]. - Annualized new premiums increased by 9% to $3.443 billion[3]. - Cash generation showed strong performance with basic free surplus rising by 15% to $2.804 billion[3]. - The solvency ratio for AIA Co. was reported at 415%[3]. - Interim dividend increased by 14% to HKD 0.333 per share[4]. - Total assets of the group reached $256 billion as of June 30, 2019[6]. - The net profit for the first half of 2019 was $3.864 billion, more than double the $1.662 billion reported in the same period of 2018, reflecting a year-on-year increase of 156% at fixed exchange rates[36][37]. - The company reported a net profit of $3.864 billion for the period, contributing to a total comprehensive income of $11.806 billion[130]. - Total revenue for the six months ended June 30, 2019, was $24,276 million, a 24.5% increase from $19,491 million for the same period in 2018[121]. Business Growth - New business value in China grew by 34%, marking it as the fastest-growing market segment[4]. - The exclusive agency distribution channel achieved a 21% increase in new business value[5]. - New business value increased by 20% to $2.275 billion, driven by double-digit growth in markets such as Hong Kong, Malaysia, and China[15]. - New business value in Hong Kong rose by 19% to $945 million, supported by broad growth in agency and partner channels[20]. - In China, new business value surged by 34% to $702 million, with a new business value margin of 93.2%[20]. - Malaysia achieved a double-digit new business value growth of 10% to $130 million, aided by increased active agents and improved productivity[22]. - Other markets recorded a strong new business value growth of 17%, supported by the acquisition of AIA Sovereign Limited[22]. Investment and Assets - The total investment portfolio reached $218.39 billion, up from $195.28 billion, maintaining an 88% allocation to policyholders and shareholders[48]. - The value of debt securities increased by 12% to $208.71 billion, compared to $186.14 billion at the end of 2018[47]. - Total assets increased by 17% to $255.69 billion as of June 30, 2019, compared to $229.81 billion at the end of 2018[47]. - The total amount of debt securities listed as of June 30, 2019, was $156,030 million, up from $140,221 million at the end of 2018, marking an increase of approximately 11.3%[172]. Shareholder Returns - The company declared an interim dividend of 33.30 cents per share, a 14% increase from 29.20 cents in the previous year[7]. - The basic earnings per share for the six months ended June 30, 2019, was $24.08, a 12% increase from $22.08 in the same period of 2018[7]. - The total equity attributable to shareholders increased to $40.271 billion as of June 30, 2019, after a dividend payment of $1.448 billion, reflecting a total change of $3.476 billion during the period[38][39]. Regulatory and Compliance - The company plans to fully implement the solvency regulatory framework in China by March 31, 2022[57]. - The implementation of IFRS 17 is ongoing, with the expected final standard to be published by mid-2020[58]. - The group has chosen to apply a temporary exemption regarding the adoption of IFRS 9, which outlines the classification, measurement, and recognition of financial assets and liabilities[137]. Risk Management - AIA's risk management framework is integrated into key business processes, ensuring that financial and operational risks are assessed in product development and strategic planning[90][91]. - The company maintains a focus on sustainable and profitable business growth in India, leveraging a diversified multi-channel distribution strategy[89]. Employee and Corporate Governance - As of June 30, 2019, the company employed approximately 22,000 employees, an increase from about 21,000 employees as of June 30, 2018[116]. - The company has adhered to corporate governance codes and standards, ensuring compliance with relevant regulations throughout the reporting period[92][93].