Mixed pre-IPO results from AIA

American International Group
reports that its Asian unit, AIA Group, is making solid progress
and should report a pre-tax operating profit of at least $2bn in
its fiscal year to 30 November 2010.

This would represent an 8.7%
improvement on the $1.84bn reported in the previous year and comes
in the run-up to AIA’s planned $35.5bn initial public offer on the
Hong Kong Stock Exchange.

In the nine months
to 31 August 2010 AIA’s new business reflected a mixed performance
with annualised new premium income increasing by a modest 4.9%
compared with the first nine months of 2009 to $1.39bn.

The best performance was recorded
in Singapore where annualised premium income increased by 37.5%
to
$154m.

In AIA’s larger markets, annualised
premium income was up by only 1.5% to $265m in Hong Kong while in
Thailand it increased by 12.1% to
$288m.

In Korea a 14.7% fall in annualised
premium income to $209m was recorded while in China an increase of
only 3.7% to $141m was achieved.

Thanks to improving persistency AIA
reported that renewal premium income increased by 12.5% from
$7.065bn in the first nine months of 2009 to $7.946bn in the first
nine months of 2010.

This resulted in total weighted premium income increasing by
11.3% in
the first nine months of 2010 to $9.327bn.

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