Hong Kong-based AIA Group has reported an 89% increase in profit to $US3.02 billion ($2.93 billion) for the year to November 30, and says its Australian business performed strongly.

The group says it experienced overall business growth, favourable investment income and expense management.

Strong Asian stock markets boosted the bottom line by $US787 million ($764 million), compared to a loss in 2011.

AIA Australia CEO Peter Crewe says the company remains the largest group life insurer in the country and is growing fast in retail life.

It grew individual risk lump sum sales by 48.3%, outstripping the market growth rate of 15.6%.

“The past three years have been exceptionally strong in terms of performance and growth for AIA at a group level and here in Australia and we are continuing to invest in the business to ensure we support the needs of our partners and clients,” he said.

AIA’s major markets are Hong Kong, Thailand, Singapore, Malaysia, China and Korea. It says growth from other areas has been partly offset by an unfavourable claims experience in Australia.

The group reported a 27% increase in the value of new business to $US1.19 billion ($1.15 billion), saying this was driven mainly by strong performances in Australia and the Philippines and outstanding growth in Indonesia and Taiwan.

Inforce business rose 12% to $US18.24 billion ($17.7 billion).

The Australian business operated through independent financial advisers experienced “significant” growth through the launch of a new product and program for advisers.

AIA says that during the period it introduced simplified packaged products designed specifically for the agency market, along with training and incentives targeting agents’ relationships with SME business-owners.