AIA Insurance - Although the name stands for American International Assurance, AIA does not have offices in the United States or any other American country. Let's look at the journey of the insurance company that Prudential almost bought. AIA Insurance - Although the name stands for American International Assurance, AIA does not have offices in the United States or any other American country. Let's look at the journey of the insurance company that Prudential almost bought. Starting from its establishment on December 19, 1919 in Shanghai by Cornelius Vander Starr, AIA is a large insurance company with the Asia Pacific market. Currently, AIA has its headquarters in Hong Kong and operates in 18 countries. Ranked 213 on the Fortune Global 500, AIA's name has been known in Indonesia since 2009, where PT AIG Life officially changed its name to PT AIA Financial. In Singapore, AIA is the most popular insurance.
As of the end of 2019, AIA has more than 23,000 employees worldwide.
The number of policyholders and the number of AIA agents is the largest in Singapore. Similar to Prudential's condition in Indonesia. As of the end of 2019, AIA has more than 23,000 employees worldwide. AIA has served more than 36 million individual customers and 16 million group insurance customers. More than a third of AIA's source of premium income comes from Hong Kong. The AIA insurance products are marketed to more than 10,000 professionals and experienced in marketing by distributing them through distribution channels such as agents, corporate solutions, and bancassurance. In 2014, AIA Financial successfully became the second best life insurance company in Indonesia for the Total Weighted Premium Income (TWPI) category. It was recorded that AIA was able to achieve a market share of 10.3% and grew by 23% from the previous years with a value of Rp 8.1 trillion. In order to continue to grow, AIA Financial has spread its wings into the world of sports by cooperating as a sponsor in a football team. For fans of Tottenham Hotspur FC, you must have often seen the AIA logo on the shirts of their favorite players. In 2014, AIA first became the Official Shirt Partner for the club Tottenham Hotspur.
Insurance company AIA also has a very famous Global Ambassador from the world of football, namely David Beckham. AIA is currently ranked 213 on the Fortune Global 500 (a list of the world's largest companies). It has been 6 years since AIA has been in the ranks of Fortune magazine's largest companies. According to AIA's 2019 financial report, AIA's total assets are USD 284.1 Trillion. In comparison, AIA's total assets are worth 3.1 times greater than the assets of Bank Mandiri, one of the largest banks in Indonesia. Apparently, AIA was almost bought by Prudential in 2010 for USD 35.5 billion. Prudential is apparently interested in AIA's large market reach in Asia.
Then for one reason or another, Prudential bid to the figure of USD 30.38 billion. As a result, there was no price agreement and the purchase agreement was cancelled. In the same year, AIA then sold its ownership shares publicly through an Initial Public Offering (IPO) in Hong Kong. The IPO was a success and AIA raised USD 17.9 billion, becoming the largest AIA IPO in Hong Kong at the time. As of December 2020, AIA's total assets of insurance companies have reached USD 326 billion. AIA Financial's shares in the Hong Kong market increased by 45% in the same year, thus contributing to the company's market value of around USD 144 billion. Total asset growth in 2020 makes AIA now occupy the top position for bancassurance product performance from the new business total weighted premium income category. Not only that, PT AIA Financial also occupies the number 1 position in terms of the amount of Sum Insured reaching Rp 686 trillion.
The total claims are paid from conventional insurance products and sharia units.
This achievement exceeds what the company achieved in the 2019 period before the pandemic. During the Covid-19 pandemic, people's need for health insurance is increasing. This achievement shows that AIA insurance is able to fulfill its long-term obligations including providing protection to all its customers. AIA is also continuously able to prove its commitment as a health and life insurance company in protecting customers who have paid total claims and benefits throughout 2020 which reached Rp 3.2 trillion. The total claims are paid from conventional insurance products and sharia units. In the first half of 2021, AIA Group Ltd insurance recorded a positive performance marked by an increase in interim dividends and a surge in new business value.
According to a report from Reuters, insurance company AIA's new business value (VONB) rose by 22% in January-June to USD 1.81 billion. VONB itself measures the profit from the new premium as well as the expected size for future growth. In mainland China, AIA's largest market, new business value (VONB) jumped by 15% which helped the Asia-focused health insurer increase its interim dividend by 8.6% to 38.00 Hong cents per share. In the Asian market, especially for insurance companies that rely on their agents to sell health and life insurance products, they are hampered by social distancing rules implemented in various countries to slow the pace of the pandemic. Even so, AIA is still trying to sell more of its products online. It is noted that the premier insurance agency AIA has succeeded in increasing the productivity of its active agents in the midst of the Covid-19 pandemic. The result was an increase of 25% of registered Million Dollar Round Table (MDRT) members to over 16,000. This makes it the seventh year in a row that AIA has achieved the largest number of officially registered MDRT members globally. One of AIA's strategies in dealing with the sluggish economy due to the pandemic is to create a unique, personal, and meaningful experience for customers to provide financial protection. AIA Financial Group wants to transform into a simpler and faster organization.