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AIA CEO Says Focus Is On Organic Opportunities that Drive Growth

Source: Dow Jones, Fiona Law

Posted on 25 Feb 2011

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AIA Group Ltd. Chief Executive Mark Tucker said Friday that the Asian insurance giant will focus mainly on organic opportunities to drive the firm's growth in this fiscal year ending Nov. 30, after it recorded a 54% jump in net profit in the year-earlier period

Tucker told reporters on a conference call that the insurer would only consider acquisitions if doing so would make business sense for the company. He said he expects the strong growth momentum seen during the last fiscal year ended Nov. 30 to continue, and reiterated he sees immense growth opportunities in China, its fourth-biggest market by premium income.

The company, which is 33% owned by American International Group Inc. (AIG) and listed in Hong Kong in October, reported Friday a net profit of US$2.7 billion for the last fiscal year, up from US$1.75 billion a year earlier, driven by investment gains and strength in new business growth.

Tucker said the results were also boosted by currency gains amid a weaker U.S. dollar during the period, but the said the insurer won't speculate on currency movements.

He also said that AIG's position to divest shareholding in the firm over time remains unchanged.