AIA Group Ltd reported 13 percent growth in new business value in the first half of this year, led by strong sales in key markets including the Hong Kong Special Administrative Region and China.

The growth to $3.21 billion fell short of the $3.26 billion median estimate of six analysts compiled by Bloomberg News. Without the exchange rate impact, the insurer’s growth rate would have been 10 percent.

The firm’s expansion underscored the broader industry trend. Insurers have seen continued demand from both local and mainland clients seeking higher returns amid low interest rates at home. Investors are gauging the extent of China’s recent tax collection efforts for dividend payouts on offshore insurance products and the impact on the HKSAR's insurance industry.

In the SAR, the largest market for AIA, new business value increased 10 percent to $1.17 billion for the first six months on continued demand from the Chinese mainland visitor segment. The metric for China grew 26 percent to $937 million. In Southeast Asia, Singapore’s sales climbed 14 percent to $294 million, driven by demand in wealth and long-term savings products from both affluent and high-net-worth clients.

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Garth Jones, group chief financial officer, said in an interview with Bloomberg News that the insurer continues to see “good demand” from Chinese mainland visitors. “Based on our understanding, there’s no change in the tax laws in China,” he said. “People don’t come to Hong Kong to buy our products for tax reasons principally.”

The company will pay an interim dividend of 53.9 Hong Kong cents per share, an increase of 10 percent.

“As we navigate an extended period of uncertainty, marked by rising global geopolitical tensions, financial market volatility and renewed inflationary pressures, AIA’s core advantages remain as relevant to customers today as they have ever been,” Lee Yuan-siong, group chief executive and president, said in the statement on Thursday.

AIA said it completed in June the $1.7 billion share buyback plan that was announced in March. It also reported a record high annualized operating return on equity at 17.5 percent, up from 15.5 percent in 2025.

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The insurer has made an annual expense saving of $200 million after investing some $800 million to update its technology in recent years, Jones said. The technology developments have helped cut down administrative hours and enabled agents to focus on client services, he said.