Q: Is financial soundness an accurate gauge of corporate success in your view?

In the life insurance sector, financial soundness is imperative.

Ours is a long-term business where we make promises of financial security for 20 to 30 years. As such, financial strength is necessary so we can provide financial security to customers.

AIA maintains more than the required capital to assure customers that we are the best long-term insurer. Our success lies in ensuring that customers are secure and rewarded, and we can only ensure this if we have the financial strength to do so.

Q: How important is it to provide stakeholders with accurate and reliable financial statements?

Transparency and accountability are a must. Ours is a sector based on trust and long-term relationships, and this can only happen by providing all stakeholders accurate and reliable financial information.

Q: What would be the key measures of financial performance in your sector – and why?

Now more than ever, we understand that crises can unfold without prior warning. The ability to withstand external shocks is therefore crucial to a company’s strength and stability. AIA has the highest capital adequacy ratio in the country, which even under these conditions is more than 4.5 times the minimum required by Sri Lanka’s insurance regulator. This means that we have a very high capacity to handle crises and withstand risks.

Another important measure is the financial returns to customers, which demonstrates a company’s commitment to honouring the customer. AIA has consistently paid above the promised amount in customer dividends for 30 years with a payout of nearly 10 percent in 2019.

A company’s investment strategy is also an important factor in financial success. AIA is very careful about where it invests, only doing so in government securities, and high quality corporate bonds and fixed deposits so customers know their money is safe.