AIA (01299) 1H VONB up 31% to US$1.26bn; div HK21.9 cts

    AIA Group (01299) said its IFRS net profit for the six months ended 31 May 2016 dropped 2% year-on-year, on constant exchange rates basis, to US$2,065 million reflecting the strong growth in operating profit after tax (OPAT) and a lower corporate income tax rate in Thailand offset by negative mark-to-market movements in equities and real estate of US$27 million compared with gains of US$409 million in the first half of 2015.
  On actual exchange rates basis, net profit fell 6% year-on-year.
  Value of new business (VONB) rose 37% year-on-year, on a constant exchange rate basis, to US$1,260 million. On actual exchange rates basis, VONB rose 31%. This is a direct result of the effectiveness of Premier Agency strategy driving a significant improvement in active agent productivity and increased active agent numbers as well as an excellent performance in AIA's partnership distribution channel. The profitable new business written in past years and the high-quality product mix, with the focus on insurance and fee-based earnings, has driven a 14% increase in IFRS OPAT to US$1,956 million. Embedded value operating profit also climbed 28% driven by excellent new business growth and positive operating experience from the proactive management of in-force portfolio.
  Annualised new premiums (ANP) grew 31% to US$2,355 million. New business regular premiums rose 37% and accounted for more than 90% of overall ANP in the first half of 2016. VONB margin was higher by 2.4 pps to 52.7% mainly due to positive shifts in country mix, channel mix and others.
  The proposed interim dividend is HK21.9 cents (2015: HK18.72 cents) per share, payable on 31 August 2016.