AIA Group has reported a 23% increase in new premiums to $US1.09 billion ($1 billion) for the six months ending May 31.

This compared to the corresponding period last year where new premium sales were $US887 million ($851 million).

The Asian life insurer has also delivered a strong after-tax profit for the 2011 half-year, up 8% to $US967 million ($927 million), compared to $US899 million ($862 million) in the 2010 half.

Inforce premiums grew by 10% in this first half to $US16.7 billion ($16 billion) compared to $US15.2 billion ($14.5 billion) in the corresponding period last year.

AIA CEO Mark Tucker says the strong results are an indication of more to come.

“Our strong performance across all of our key financial performance measures demonstrates the excellent progress we have made in executing our growth strategy,” he said.

He attributes the sales growth to building its Premier Agency sales force and lifting agent productivity.

Australia is included in what AIA terms “other markets”, which reported a 4% decline in new business to $US44 million ($42 million). This compared to $US46 million ($44 million) in the 2010 half-year.

But the after-tax profit for these markets was up 16% to $US101 million ($96.8 million) in the 2011 half-year.

Mr Tucker says Asia remains the most dynamic region for the life insurance industry, driving the insurer’s growth “given the long-term economic outlook and demographic trends which fuel the region’s savings and protection needs”.