AIA Group increases dividend despite profit falling 23% in first half

21st August 2025 03:10

(Alliance News) - AIA Group Ltd on Wednesday lifted its interim dividend despite reporting a decline in profit for the first half of 2025 amid a significant drop in its net investment result.

The Hong Kong-based insurance company said net profit fell 23% to USD2.55 billion in the six months ended June 30 from USD3.32 billion a year earlier. Diluted earnings per share declined 20% to USD0.24 from USD0.30.

The insurance service result improved by 20% to USD3.63 billion from USD3.03 billion.

However, the net investment result dropped 95% to USD85 million from USD1.65 billion, with the company reporting an increase in net finance expenses from insurance contracts of 52% to USD4.97 billion as investment return improved by 6.8% to USD5.55 billion.

AIA raised its interim dividend by 10% to 49.00 Hong Kong cents per share, approximately USD0.06, up from 44.50 cents last year.

The value of new business rose 14% to USD2.84 billion from USD2.46 billion, with the VONB margin improving to 57.7% from 53.9%.

Chief Executive Lee Yuan Siong said: "Asia is the most attractive region in the world for life and health insurance. The strong fundamental growth drivers of rising wealth, low insurance penetration levels and limited social welfare coverage continue to power the long-term exceptional prospects for AIA’s business. I am confident that AIA’s geographical diversification and focus on the disciplined execution of our strategic priorities will continue to deliver long-term sustainable value for all our stakeholders."

AIA shares were down 1.9% at HKD72.70 in Hong Kong on Thursday morning.

By Elijah Dale, Alliance News senior reporter Asia-Pacific

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