The AIA Central building, which houses the headquarters of AIA Group, one of the traditional insurance brands, stands between Cheung Kong Center and CCB Tower in Hong Kong. (MIKE CLARKE / AFP)

Pan-Asian insurer AIA Group Ltd reported that its interim profit for the six months ending June 30 surged nearly 48 percent year-on-year to $3.27 billion, with an 8.6 percent increase in the interim dividend per share to HK$0.38 (4.9 US cents).

The insurer’s business performance showed strong growth in several geographical regions — but not in Hong Kong, where travel restrictions adversely affected sales to visitors from the Chinese mainland, company officials said.

The company’s operating profit after taxes gained 5 percent to $3.18 billion.

The insurer’s business performance showed strong growth in several geographical regions — but not in Hong Kong, where travel restrictions adversely affected sales to visitors from the Chinese mainland, company officials said

AIA’s value of new business (VONB), which measures expected profits from new premiums and is a key gauge for future growth, rose 22 percent to $1.81 billion, while the VONB margin rose 4.2 percentage points to 59 percent. Annualized new premiums grew 13 percent to $3.06 billion.

Among various geographical segments, the mainland constituted 40 percent of the insurer’s VONB, with a VONB margin of 82.1 percent, as this market’s VONB expanded 15 percent from a year ago.

ALSO READ: Strong mainland business boosts AIA earnings

The Hong Kong market accounted for 17.2 percent of the total VONB, with a VONB margin of 57.5 percent. This market posted a meager annual growth rate of 2 percent in VONB.

The Malaysian market contributed the largest increase in the company’s VONB (89 percent), followed by Thailand (52 percent) and Singapore (32 percent).

“The VONB exceeded the pre-pandemic levels of the first half of 2019 for each of our reportable segments except Hong Kong, where travel restrictions continue to affect sales to mainland visitors,” AIA Group Chief Executive and President Lee Yuan Siong said in a company statement on Wednesday.

The insurance company will continue to expand the mainland market with the launch of its new operation in Sichuan province and the regulatory approval to prepare for a new branch in Hubei province.

Daiwa Capital Markets expects AIA’s business performance will be determined by the expansion of the mainland market, agency development, digitization initiatives, and the new group-wide supervision framework by the Insurance Authority in 2021.

READ MORE: AIA seeks measured expansion in China insurance sector

Daiwa Capital markets assigned a “buy” rating on the Pan-Asian insurer with a target price of HK$94 per share. On Tuesday, the company share price spiked 3.13 percent to close at HK$96.95 apiece.

As of the end of June, the insurer had total assets of $330 billion, serving more than 39 million individual policies and over 16 million participating members of group insurance plans.