AIA NZ: Net After-Tax Profit of $23.6 Million for 2013
AIA New Zealand Reports Net After-Tax Profit of $23.6 Million for 2013; But Management More Focused On Future Growth
Auckland, 29 April 2014 – AIA New Zealand has announced a net profit after tax of $23.6 million for the 12 months to 30 November 2013, which includes a gain of $21.0 million generated by the positive movement in the discount rate applied in valuing life insurance policy liabilities. When the impact of this movement is removed, the underlying profit of $2.6 million is similar to 2012 ($2.9 million in 2012).
With year-on-year results volatility due to such movements in the discount rate (in the 2012 financial year the movement was negative), the company is more focused on investing in future growth. AIA New Zealand CEO Wayne Besant says, “2013 was a great year for our corporate solutions business, with 57% growth in new business premium over 2012, and we have also seen improvements in both net premium and margins in our Retail channel.
“In 2014, we have dedicated much of the year to maximising our prior investments in operational technology and to expanding distribution channels. Some of our new channels are in the start-up phase at present - however, we have started to see the benefits from these channels coming through the P&L. We are confident that as the delivery model matures, the channels will contribute to the overall profitability of the business over the coming year and beyond.”
One of the new distribution channels is the AIA Agency team, a proprietary channel which launched in September 2013 to serve New Zealand’s growing population of migrants from Asia. The initial 16 advisers, who between them speak nine Asian languages, have just been bolstered by the addition of a further eight advisers. The team complements AIA New Zealand’s work with the wider community of independent financial advisers around the country.
developments in the business in 2013 include:
• A restructuring of the company’s reinsurance arrangements, positioning AIA New Zealand to optimise the financial strength of its parent company, the AIA Group;
• Enhancements to product features and pricing.
Mr Besant says, “In the 2012 financial year we began the process of positioning our business for future growth and enhanced profitability. The 2013 year has ushered in some early results from this strategy, and we expect to see further benefits in the future.”
AIA New Zealand also continues to investment in cultural community initiatives. In 2014, this includes sponsorship of Maori Television’s Anzac Day coverage and of the long-running AIA Marae DIY series.
About AIA New Zealand
AIA New Zealand is a member of the AIA Group. AIA is listed on the Main Board of the Stock Exchange of Hong Kong Limited as stock code 1299.
Since the company arrived in New Zealand in 1981, AIA New Zealand has consistently provided the market with innovative personal and business insurance products that suit the Kiwi way of life.
Today AIA offers a complete range of risk management products that focus on the needs of customers.
AIA New Zealand is based in Auckland with regional offices in Wellington, Hamilton and Christchurch. However, through a network of financial advisers, AIA reaches every corner of the country.
AIA New Zealand is a member of the Financial Services Council (FSC), the Insurance and Savings Ombudsman Scheme (ISO) and the Health Funds Association of New Zealand (HFANZ).
AIA Group Limited and its subsidiaries (collectively “AIA” or “the Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has operations in 17 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$147 billion as of 31 May 2013.
AIA meets the savings and protection needs of individuals by offering a range of products and services including retirement savings plans, life insurance and accident and health insurance. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents and employees across Asia-Pacific, AIA serves the holders of more than 27 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).