Hong Kong life insurers on track for solid 2025 results

Hong Kong's three largest life insurers by market capitalization are expected to deliver improved financial performance for the full year, building on strong first-half results, according to analyst consensus estimates from Visible Alpha, a part of S&P Global Market Intelligence.

AIA Group Ltd., Prudential PLC and China Taiping Insurance Holdings Co. Ltd. are expected to all close the year with higher operating net incomes.

AIA is set to see the largest increase, with operating net income forecast to rise to HK$55.39 billion from HK$51.51 billion. Prudential will see its operating net income climb to HK$20.74 billion from HK$18.92 billion, according to the projections. Although China Taiping's operating net income is also expected to increase, it will be more modest, ticking up to an expected HK$25.04 billion from HK$24.94 billion last year.

All three insurers recorded higher insurance service results and value of new business in the first half of this year.

Solid insurance service result, new business value

AIA is forecast to record the largest increase in insurance service result, rising to HK$51.14 billion in 2025 from the HK$44.20 billion reported in 2024. The projected increase is supported by strong insurance service result growth in the first half, driven by profitable new business and favorable claims experience, according to AIA's latest earnings release.

Prudential's adjusted insurance service result will jump year over year to HK$20.87 billion from HK$19.04 billion. The life insurer demonstrated strong growth in insurance service result during the first half, achieving a double-digit increase of 13%.

China Taiping's insurance service result will edge up to HK$22.57 billion in 2025 from HK$22.02 billion. This modest growth follows a solid year-over-year increase of 9% in the first half, which boosted the company's life insurance results.

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All three insurers are expected to also post solid growth in value of new business for 2025, thanks to strong demand for life insurance products.

AIA's value of new business will climb to HK$41.95 billion from HK$36.60 billion. That stands to follow a 14% year-over-year increase in the first half as the insurer posted growth in 13 of its 18 markets.

Prudential's value of new business will increase to HK$21.86 billion from HK$19.62 billion. The insurer had a strong start to the year, with new business profit increasing by 12% on an annual basis in the first half as 13 of its 19 life insurance markets recorded growth.

China Taiping's value of new business will slightly increase to HK$11.50 billion from HK$9.10 billion.

All three insurers are focusing on growth opportunities in Asia, which AIA Group CEO Yuan Siong Lee described during an earnings call as "the most attractive region in the world for life and health insurance."