Top Hong Kong-based life insurers deliver double-digit operating profit growth

The three largest Hong Kong-based life and health insurers by market capitalization reported double-digit increases in operating profit in 2024, with AIA Group Ltd. posting the largest percentage increase, according to an S&P Global Market Intelligence analysis.

AIA's operating profit surged about 64% to HK$69.57 billion in 2024 from HK$42.43 billion in 2023. Profitable new business growth contributed to the group's strong earnings and cash flow generation, CEO Yuan Siong Lee said during an earnings call. AIA's value of new business, which measures new business profitability, reached a record level with 18% year-over-year growth in 2024, according to the life insurer's annual report. The insurer attributed the value of new business growth to double-digit growth in all of its reportable market segments and distribution channels.

China Taiping Insurance Holdings Co. Ltd. had the second-largest operating profit growth at 63% year over year to HK$26.02 billion in 2024. The insurer's life insurance business generated HK$10 billion in profit for 2024, up 11.6% from the previous year, according to an earnings report.

Prudential PLC also reported positive results, with operating profit rising about 34% to HK$29.64 billion in 2024. An 11% year-over-year increase in new business profit supported the insurer's 2024 earnings. Eighteen out of its 22 life markets recorded growth in new business profit in 2024.

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Steady growth in insurance service result

All three insurers recorded higher insurance service results as insurance service revenue surpassed related expenses in 2024.

AIA logged the largest increase in insurance service result, which jumped to HK$45.01 billion from HK$39.86 billion. AIA partly attributed the increase to a 7% rise in contractual service margin release.

Prudential logged an insurance service result of HK$17.89 billion, up from HK$16.34 billion. China Taiping's insurance service result climbed to HK$22.02 billion in 2024 from HK$18.53 billion a year earlier.