AIA Group delivered another strong financial performance in the first half of 2026, with its value of new business climbing 10% to a record US$3.21 billion. But while growth was broad-based across its Asian operations, Thailand stood out as the one major exception.
AIA Group, one of Asia’s largest life and health insurance groups, reported a 10% year-on-year increase in value of new business (VONB) for the six months ended June 30, 2026, reaching US$3.212 billion on a constant exchange rate basis.
The result was broadly in line with the company’s consensus estimate of about US$3.2 billion and marks another period of double-digit growth for the Hong Kong-listed insurer.
Growth was even stronger without Thailand
AIA’s headline 10% growth masks an even stronger underlying performance.
When Thailand is excluded, the group’s VONB increased 14% year on year. AIA said all reportable segments delivered positive growth except Thailand, which faced a particularly strong comparison from the previous year.
VONB is an important measure for insurers because it estimates the expected profit generated from new insurance business. Rather than simply measuring premium sales, it provides investors with an indication of the quality and profitability of newly acquired business.
Hong Kong remains a key growth engine
AIA’s Hong Kong business recorded a 10% increase in VONB during the first half.
The company attributed the performance to strong demand from both local customers and visitors from mainland China. Hong Kong has remained one of AIA’s most important profit-generating markets, with cross-border demand continuing to play a significant role.
That momentum follows a strong start to the year. In the first quarter, AIA Hong Kong’s VONB surged 21%, while Mainland China recorded a 26% increase, helping drive the group’s 13% first-quarter VONB growth.
Profit growth adds to the picture
The latest results were not limited to new business.
AIA reported operating profit after tax of US$4.163 billion, representing a 13% increase per share. The insurer said it now expects to exceed its previously stated target of 9% to 11% compound annual growth in operating profit after tax per share from 2023 to 2026.
Its annualised operating return on equity also reached a record 17.5%, while annualised operating return on embedded value reached 18.0%.
The group’s value of new business margin remained strong at 57.1%, broadly stable from the first half of 2025. AIA said stronger product mix in Hong Kong helped margins, although this was offset by a shift toward lower-margin participating products in Mainland China and weaker margins in Thailand.
Shareholders are getting more, too
AIA also increased its interim dividend by 10% to 53.90 Hong Kong cents per share.
The company said it returned approximately US$3.6 billion to shareholders during the first half, through dividends and share buy-backs.
That shareholder-return strategy builds on the US$1.7 billion share buy-back programme announced after AIA’s record 2025 results. In 2025, AIA’s full-year VONB rose 15% to US$5.516 billion.
Thailand becomes the number to watch
Despite the group-wide strength, Thailand remains a notable weak spot.
AIA said Thailand’s decline was largely affected by an exceptionally strong prior-year comparison, particularly following unusually strong medical insurance sales. The company also reported weaker margins in the market during the first half.
That does not necessarily mean AIA’s Thai business is deteriorating. The comparison base matters, and the company continues to regard Asia’s structural demand for life and health insurance as a major long-term growth driver.
Asia remains AIA’s bigger bet
AIA operates across 18 markets, including Mainland China, Hong Kong, Singapore, Malaysia, Indonesia, the Philippines, South Korea, Thailand, Australia and New Zealand, alongside a joint venture in India.
The company is betting that rising incomes, demographic changes, relatively low private insurance penetration and limited social welfare coverage will continue to support demand for protection, health, savings and retirement products across Asia.
That outlook was also evident in AIA’s first-quarter results. Before the latest half-year figures, the company had already reported a 13% rise in VONB to US$1.757 billion for the first quarter, with particularly strong performances in Mainland China and Hong Kong.
But a new risk is emerging
The strong results come against a changing regulatory backdrop.
Earlier in August, Hong Kong-listed insurers faced pressure following reports that Chinese tax authorities had begun levying a 20% personal income tax on returns from Hong Kong insurance policies. The development raised concerns that tighter scrutiny of offshore investments could eventually affect demand from mainland Chinese customers.
For now, AIA’s latest numbers suggest demand remains resilient.
The bigger question for investors is whether that momentum can continue if regulatory scrutiny of cross-border insurance increases — particularly in Hong Kong, one of the group’s most important markets.
For AIA, the first half of 2026 delivered another double-digit growth story. The next test may be whether it can maintain that momentum while navigating a more complicated regulatory and economic environment across Asia.
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