AIA 2020 OPAT inches up 5% to $5.9b

Value of new business fell 33% in the same year due to operational changes.

AIA has recorded a 5% growth in 2020 operating profit after tax (OPAT) to $5.9b as value of new business (VONB) fell 33% to $2.8b due to operational changes caused by the pandemic, according to an announcement.

Annualised new premiums (ANP) went down 20 per cent to $5.2b. On the other hand, VONB for the first two months of 2021 surged 15% YoY as salesmomentum picked up amidst more relaxed movement restrictions.

The insurer’s embedded value operating profit reached $7.2b.2020 was a landmark year for AIA China as it became the largest VONB contributor for the group, the insurer said. The Shanghai branch has been turned into a subsidiary and AIA became the first foreign insurer to wholly own a life subsidiary in the Mainland.

In Hong Kong, new business sales from Mainland Chinese visitors have effectively been on hold from February 2020 because of border restrictions, AIA said. Macau resumed its Individual Visit Scheme from late September and sales to Mainland Chinese visitors contributed over one-third of ANP in Q4.

The board has recommended a 7.5% increase in final dividend for 2020 to 100.30 Hong Kong cents per share.