(Yicai Global) April 26 -- AIA Group Ltd. [HK:1299] affiliate AIA China's insurance business income saw double-digit growth last year, but net profit fell more than 80 percent.
AIA China said yesterday in its annual financial report that its operating income reached CNY20.1 billion (USD2.92 billion) last year. Insurance business income was CNY16.1 billion, an increase of 28.2 percent, and accounted for 80 percent of total revenue. The cash surrender value was CNY473 million, down 15.4 percent from 2015. Net profit was CNY518 million, an 83 percent decline from 2015's CNY3 billion.
AIA China did not give reasons for the decline in net profit. A 41.4-percent drop in investment income, which was CNY4.3 million last year compared with CNY7.6 million in 2015, may have been a major contributing factor.
AIA China's total assets were 111 billion last year, an increase of 12.45 percent. AIA China's solvency rate was 449 percent at the end of 2016, an increase 31 percentage points compared to 418 percent at the end of 2015.