Di Yi Cai Jing·2025-08-27 04:28Core Viewpoint - AIA has set a high target of a 40% compound annual growth rate for new business value in new regions of the Chinese mainland market over the next five years, despite challenges such as a low interest rate environment [1][5]. Group 1: New Business Value Performance - AIA's new business value (VONB) increased by 14% year-on-year to $2.838 billion, with a profit margin rising by 3.4 percentage points to 57.7% [1][2]. - The new business value for AIA Life in the Chinese mainland decreased by 4% year-on-year, primarily due to adjustments in economic assumptions [2]. - Excluding the impact of economic assumption changes, AIA Life's new business value grew by 10%, with a second-quarter growth rate of 15% [2]. Group 2: Strategic Expansion Plans - AIA plans to add 1-2 new provincial agencies each year, expanding its operational regions from 5 to 14 over six years, with new regions showing a 36% increase in new business value in the first half of 2025 [4]. - The company aims to deepen its market presence through various strategies, including establishing an insurance asset management company and transforming dividend products [1][5]. Group 3: Response to Low Interest Rates - In response to the low interest rate environment, AIA has shifted its focus towards dividend products, which accounted for 87% of the new business value from long-term savings in the first half of 2025 [6]. - The company believes that dividend products provide a "win-win-win" situation for insurance companies, customers, and capital markets, as they can reduce liability costs while offering potential returns to customers [6]. Group 4: Asset Management Strategy - AIA is focusing on differentiating between dividend and non-dividend accounts in its asset management strategy, ensuring appropriate asset-liability matching [7]. - The asset allocation strategy includes long-term bonds, alternative assets, repurchase agreements, QDII overseas investments, and equities to enhance returns [7].