Asia Financial Holdings Limited reported a notable increase in earnings for the year ending Dec. 31, led by gains in its core insurance business and strategic investment decisions.
The company, headquartered in Hong Kong, said its net profit attributable to shareholders climbed to HK$647.1 million, up 86.6% from the previous year’s HK$346.8 million.
Asia Insurance Company Limited, a wholly-owned subsidiary, contributed HK$501 million to the group’s profit – a 106.9% increase year-on-year.
The growth was underpinned by a 34% rise in insurance revenue and a 40.7% increase in insurance service results.
Chairman and president Bernard Chan stated that performance was supported by a broad product mix and distribution strategy.
“This solid performance reflects our exceptional reputation, the depth and strength of our client relationships, and core business partnerships, which we have tirelessly developed over the past 65 years and cultivated through our consistently professional and innovative approach to business operations and development,” he said.
He added that the company had made progress in expanding its reach through direct channels, tenders, and digital platforms, alongside stable international reinsurance activity.
Asia Insurance’s operations were largely insulated from extreme weather events in 2024, including typhoons and rainstorms, with minimal impact on claims.
Asia Financial’s investment strategy emphasised portfolio diversification and responsiveness to market shifts.
Chan noted that the company increased its allocation to bonds, moving from short-term deposits to longer-dated instruments to take advantage of higher yields amid falling interest rates.
Returns from strategic equity holdings, such as Bumrungrad Hospital in Thailand and various insurance joint ventures, remained significant.
Bumrungrad's share price declined in 2024 due to currency depreciation, but the company continues to see strong revenue from international patients.
Joint ventures like BC Reinsurance Limited and Professional Liability Underwriting Services Limited delivered consistent contributions, while losses narrowed for Hong Kong Life Insurance Limited and Avo Insurance Company Limited.
Asia Financial also maintains a 5% equity stake in PICC Life Insurance, which continues to grow its presence across China.
The group’s property investment in Shanghai, representing nearly 4% of its total assets, includes a mixed-use project in Qingpu District that saw increased buyer interest in the last quarter of 2024. Market support from government stimulus and relaxed mortgage conditions played a role in boosting performance.
Looking ahead, Chan said the company is focused on strengthening distribution networks and refining service delivery across Hong Kong, Macau, and Mainland China, as well as its reinsurance ventures abroad.
“Our focus remains on delivering services that enhance the quality of life for our clients, whether through insurance, retirement planning, healthcare, or property development,” he said. “In terms of our 2025 investment performance outlook, we anticipate a more challenging and volatile investment landscape due to shifts in leadership in the United States, Europe, and parts of Asia. Geopolitical tensions remain a concern, but we remain optimistic about our overall investment strategy.”
Asia Financial’s performance coincides with broader growth in Hong Kong’s insurance sector.
According to the Insurance Authority (IA), the market recorded HK$637.8 billion in gross premiums across life and general insurance for 2024.
The general insurance segment alone is forecast to grow at 5.1% annually through 2029, reaching HK$85.4 billion.
Meanwhile, legislative changes may offer further opportunities. The Companies (Amendment) (No. 2) Bill 2024, recently passed by the Legislative Council, introduces a statutory regime enabling foreign-registered companies to re-domicile in Hong Kong without dissolving their original entities.
