AIA Group value of new business in HK sinks by 68pc to US$306m

Pan-Asian insurer, AIA Group (1299) reported today value of new business for the six months ended June 30, tumbled by 37 percent from the year before to US$1.41 billion.

Value of new business at AIA Hong Kong sank by 68 percent, to US$306 million. This was attibuted to the quarantine requirements mainland Chinese visitors since early February.

AIA increased the dividend by 5 percent to 35 Hong Kong cents per share.

Post-tax operating profit increased by 5 percent on-year to US$2.93 billion. Embedded value operating profit was lower by 13 percent to US$3.87 billion.

Annualised new premiums also fell by 24 percent on-year to US$2.57 billion.

Value of new business margin declined by 11.1 percentage points to 54.4 percent