AIA sees “great opportunities” in Australia after the country contributed to strong new business growth in the company’s first half.

The Hong Kong-based insurer’s net profit grew 34% to $US1.93 billion ($2.08 billion) in the six months to May 31 from $US1.44 billion ($1.55 billion) in the previous corresponding period.

In Australia, new business margins improved and strong adviser relationships led to product mix improvements.

“We still see great opportunities in the local market and are committed to driving value and innovation to help meet the changing needs of our partners and consumers,” AIA Australia CEO Peter Crewe said.

AIA’s major markets include Hong Kong, Thailand, Singapore, Malaysia, China and South Korea.

Value of new business, which AIA uses as a key performance measure, increased 26% to $US645 million ($696 million) overall.

Hong Kong new business grew 20% to $US168 million ($186 million) as distribution expanded, and Malaysia new business was up 69% to $US54 million ($60 million) following the acquisition of ING Malaysia.

AIA’s “other” markets reported a 67% rise in new business to $US112 million ($124 million), driven by Australia, Indonesia and the Philippines.

The New Zealand business is also benefitting from moves to build stronger relationships with independent financial advisers, AIA says.