AIA has reported a 54% increase in net profit to $US2.7 billion ($2.6 billion) for the year ending November 30.

Total weighted premium income for the year was up 12% to $US13 billion ($12.8 billion) compared to $US11.6 billion ($11.4 billion) in the previous financial year

CEO Mark Tucker says the result was achieved despite a takeover offer from Prudential and a subsequent successful float on the Hong Kong market.

“Our 2010 results are a significant improvement over 2009 on all key measures, with some excellent growth in profitability driven by a strong existing in-force book of business and a material uplift in new business growth,” he said.

New business was up 22% in the year to $US667 million ($657 million) compared to $US545 million ($537 million) in 2009.

AIA’s Australian and NZ business is included in results from Thailand and China, where they collectively reported new business growth of 44% to $US174 billion ($171 billion).

AIA Regional Manager Ng Keng Hooi says growth in these countries is coming from enhancing product margins through withdrawing or repricing low-margin products.

He says continued introduction of automation to enhance services and cost efficiency is also improving margins in this area of operations. 

In Australia, AIA will focus on growing higher margin direct marketing sales while working on its group insurance partnership with Sunsuper.

Mr Tucker says that across all Asian countries where AIA operates the focus for this financial year is on re-pricing low-margin products and a relaunch with higher protection components.

The life insurer will also adjust sales incentives to encourage advisers to move to more profitable products while also boosting sales in group insurance.