AIA Raises Earnings Outlook After Strong First Half
Pan-Asian insurer AIA delivered double-digit growth across key metrics in the first half of 2026, prompting the group to raise its earnings outlook.
AIA Group has reported a strong first half of 2026, with value of new business (VONB) rising 10 percent year-on-year at constant exchange rates to a record $3.21 billion. Excluding Thailand, where the comparison was distorted by an exceptionally strong prior-year period, VONB increased 14 percent.
Operating profit after tax (OPAT) reached $4.16 billion, with OPAT per share up 13 percent. As a result, the Hong Kong-listed insurer now expects to exceed its previous target of 9 to 11 percent compound annual growth in OPAT per share between 2023 and 2026. Annualized operating return on equity climbed to a record 17.5 percent.
China and Hong Kong drive growth
Mainland China was among the strongest contributors. VONB increased 20 percent at constant exchange rates to $937 million, while Hong Kong – AIA’s largest individual market by new business value – recorded 10 percent growth to $1.17 billion. Hong Kong’s VONB margin improved to 72 percent from 65.8 percent a year earlier.
Growth in Hong Kong was supported by partnership distribution, including the insurer’s relationships with Citibank and Bank of East Asia, as well as demand from affluent and high-net-worth clients. The Chinese Mainland Visitor segment remained broadly stable against a strong comparison period, while new customer flows exceeded 25,000.
Thailand was the only reportable segment to record lower VONB, falling 6 percent to $514 million. AIA attributed the decline to an unusually high comparison base in early 2025 ahead of the introduction of industry-wide co-payment rules. The business returned to 13 percent year-on-year VONB growth in the second quarter.
Singapore benefits from wealth demand
Singapore also delivered double-digit growth. VONB rose 10 percent to $294 million, while annualized new premiums increased 14 percent to $644 million and total weighted premium income advanced 17 percent.
AIA said demand from affluent and high-net-worth clients remained a significant growth driver, both among domestic and international customers. The insurer recorded strong growth in unit-linked long-term savings products, while its strategic partnership with Citibank also generated strong VONB growth.
The insurer continues to invest in its distribution capabilities. Active agents in Singapore increased 8 percent during the period, and more than 30 percent of its agents are Million Dollar Round Table members. AIA Singapore retained its position as the country’s largest MDRT organization for the twelfth year.
Cash generation strengthens
At group level, underlying free surplus generation rose 10 percent per share to $3.94 billion, while net free surplus generation increased 12 percent per share to $2.76 billion. AIA returned approximately $3.65 billion to shareholders through dividends and share buybacks during the first half.
The board increased the interim dividend by 10 percent to 53.90 Hong Kong cents per share. AIA’s shareholder capital ratio stood at 210 percent at the end of June, compared with 221 percent at the end of 2025.
«Asia remains the most compelling growth opportunity for life and health insurance,» Group Chief Executive and President Lee Yuan Siong said. He pointed to structural trends across the region that continue to drive demand for insurance, professional advice and differentiated products.
Distribution remains key
AIA’s agency network remains its largest distribution channel. Premier Agency VONB increased 11 percent excluding Thailand, while VONB generated through strategic distribution partners rose 18 percent, supported by bancassurance as well as independent financial advisers and brokers.
The insurer is also increasingly targeting Asia’s expanding affluent and high-net-worth segment through its agency and banking partnerships. That strategy is particularly visible in Hong Kong, Singapore, Malaysia and Thailand, where wealth accumulation and long-term savings products are becoming increasingly important growth drivers.
