AIA Group says after-tax profits grew 16% to $US2.5 billion ($2.7 billion) in the year to November 30.

The Asian insurer has also reported a 25% increase in new business, rising to $US1.4 billion ($1.5 billion).

Total premium income was $US17.8 billion ($19.7 billion), up 16% on the previous year, while premium income in “other markets” – including Australia – increased 14% to $US2.8 billion ($3.1 billion).

“Other markets” also recorded an 18% rise in after-tax profit to $US244 million ($271.3 million) for the year.

AIA Group operating expenses increased 18% to $US1.5 billion ($1.6 billion), while investment income gained 16% to $US4.9 billion ($5.4 billion).

Group CEO Mark Tucker says the results reflect “growth momentum across all our key performance metrics”.

“Our ability to achieve year-on-year growth demonstrates the power of AIA’s franchise, the resilience of our operating model and the consistent execution of our well-established growth strategy,” he said. “Asia continues to provide one of the most attractive and resilient life insurance markets in the world.”

Mr Tucker says the region’s demographics, low levels of social welfare provision and growing incomes present huge opportunities.