AIA Singapore's 2019 operating profit hikes 6% to $583m

Total weighted premium income rose 8% to $2.91m.

AIA Singapore posted a 6% increase in operating profit after tax (OPAT) to $583m (S$813m) in 2019 despite a tough macroeconomic environment, according to a news release.

Total weighted premium income (TWPI) rose 8% to $2.91m (S$4.07m) from $2.7m (S$3.8m) in 2018.

The insurer reported a $491m (US$352m) value of new business (VONB) in 2019 as annualised new premium (ANP) was flat compared to 2018, owing to lower single premium sales in their non-exclusive partnership distribution channels. VONB margin remained at 65.5%.

AIA Singapore’s bancassurance partnership with Citibank anchored the double-digit VONB growth with support from an increased number of insurance specialists from the mass affluent and retail segments, but overall VONB was lower from partnership distribution.

Group insurance business also saw a double-digit VONB growth.

The insurer unveiled numerous new programmes in 2019, including the AIA Power Critical Cover, a critical illness plan offering comprehensive protection from diagnosis of pre-early conditions to all stages of critical illness. It also launched the Beyond Critical Care, the first-ever CI plan for mental health conditions and enhanced its My AIA SG app to include the AIA Vitality wellness programme feature.

Photo courtesy of Marketing Interactive.