Good morning, everyone, and welcome to our 2021 Interim Results Presentation. We hope that you and your families are safe and well. I want to start by thanking AIA's outstanding people for their dedication and professionalism, helping our customers navigate uncertainty with uninterrupted support, while embracing new ways of working. The increasing demand for our products and new business momentum that has been building since last year has continued, driving our strong performance in the first half. I will now take you through the highlights.
In the 1st 6 months of 2021, we delivered growth in all our key financial metrics. VUMB, our leading growth indicator, was up by 22% to over US1.8 billion dollars demonstrating the power of AIA's unrivaled distribution and product platforms. Our large and growing in force portfolio supported increases in operating profit after tax and underlying free surplus generation. Both EV Equity and shareholders allocated equity reached record highs, and our capital position remains very strong. The Board has declared an increase of 8.6% in the interim dividend.
These strong results reflect the focused execution of our growth strategy, resilience of our operating model, quality of our people and our disciplined financial management. Our geographical diversification and scale across Asia are distinctive competitive advantages for AIA. As you can see on this slide, All of our reported segments delivered double digit DUMB growth on a like for like basis compared with last year. DUMB was also higher than pre pandemic levels of the first half of twenty nineteen for all of our segments except Hong Kong. Our differentiated business in Mainland China was again the largest contributor to the group's BOMB and was up by 20%.
AIA Hong Kong grew despite travel restrictions that continue to limit Sales to Mainland Chinese visitors. DMD from our domestic customers increased by 16% and sales to mainland Chinese visitors at our Macau branch have increased progressively, accounting for more than 1 third of AIA Macau's total A and P in the first half. Our focus on scaling the capacity and activity of our Premier Agency and close collaboration with our leading local bank partners supported our excellent results in Thailand and Malaysia. We achieved impressive growth in Singapore and other markets also delivered a double digit increase. Overall, we have achieved a very strong and broad based performance across the group.
These results demonstrate that we the right strategic priorities to extend our long track record of delivering shareholder value. Our very strong VOMV growth was led by an excellent performance from our Premier Agency, up 25% and contributing over 80% of the group's VONB. Since the beginning of the pandemic, We have enhanced our powerful digital agency tools that span the entire value chain from recruitment and training true to lead generation, purchase and customer service. High adoption rates have reinforced the resilience of our business even as movement restrictions were reinstated in many of our markets. Integrating social media marketing into our digital tools has created new and compelling ways for agents to engage customers with strong results, generating over 1,000,000 new leads in the first half.
The superior quality of AIA's unparalleled platform is clear. Agency leaders, active agents and productivity have all increased significantly, and greater use of technology raises our standards ever higher. Last month, we were once again named the number 1 $1,000,000 roundtable company globally for the 7th consecutive year, with a 25% year on year increase in registered members. 1 year ago, I announced our ambitious growth strategy. At the heart of our transformation is a step change in the use of technology, digital and analytics.
By upgrading to fully modern architecture and systems, We scale our strategic initiatives and drive greater efficiency, connectivity and ease of working. We are clearly outpacing the global financial services industry with our rapid adoption of cloud technology, and more than 50% of our infrastructure is now hosted in the cloud. Our use of artificial intelligence and analytics It has also advanced at pace with over 100 major projects, enhancing every aspect of our business in 2021. We have accelerated digital processing across the entire customer service journey from new business origination through to claims adjudication and payments. Nearly all of our new policies are issued electronically and use digital payment methods.
Speed and accuracy are critical to delivering industry leading customer service, and nearly 90 Send of customer inquiries are resolved within the first contact. Submission and payment of all claims are predominantly digital, and the majority of all transactions across the group are fully automated from end to end with no need for human intervention. We are making strong progress through the disciplined execution of our priorities, and we are on track to achieve our ambitious targets. The wide ranging use of technology, digital and analytics at AIA China supports the acceleration of our expansion plans to capture the unique growth opportunity available to us in Mainland China. For our premier agency, universal adoption of advanced digital tools drives faster scale, productivity and efficiency, while ensuring our strict quality standards are maintained.
Our successful model Focus on long term professional careers generates attractive income levels, drawing high quality new talent to AIA, and this also holds true for our newest operations. Our 100% ownership And highly digitalized platform delivers strong and sustainable results as demonstrated by the consistent growth across all of our existing geographies. Since our subsidiarization in July last year, Our geographical expansion has continued at speed. We launched our Sichuan operation within just 4 months of receiving initial approval from the CBIC, and we have already been granted approval to prepare for our next branch in Hubei, the 8th largest province by GDP. I'm delighted that we are making excellent progress as we replicate our highly successful While our primary focus is on organic growth across all of our markets, We have capabilities and financial strength to enhance our business through strategic investments and partnerships.
Our investment in China Post Life further increases our exposure to the enormous growth opportunities in the Chinese life insurance market. It has access to the largest retail financial distribution network in Mainland China with 40,000 financial outlets nationwide and more than 600,000,000 retail customers. Our investment enables AIA to capture the substantial potential for value creation from distribution channels and customer segments that are highly complementary to AIA China. We have also launched our 15 year exclusive partnership with Bank of East Asia in Hong Kong and Mainland China, giving us access to more than 1,200,000 loyal customers in Hong Kong and additional capabilities to help us harness the exciting prospects of the Greater Bay Area. New distribution models bring new growth opportunities, and we continue to form alliances with best in class next generation digital platform partners.
Recent partnerships included TMG Digital, Malaysia's largest e wallet and Tiki, Vietnam's leading e commerce retailer. Together, These add more than 30,000,000 potential customers outside our usual target demographics in these two markets. By expanding our competitive advantages across geographies, distribution, product and customer experience, We have delivered growth in profitable new business. This in turn drives higher free surplus generation and dividends as we have demonstrated yet again. Today's headline figures and our consistent track record reflect the strong fundamentals of our business and that we are executing the right strategy to deliver ever greater shareholder value.
Garth will now take you through the details of our financial performance.
Thanks, Yunxiong, and good morning, everyone. AA has delivered a strong financial performance with continued business momentum and growth across all our key financial metrics. Let me now take you through the results in more detail. The group delivered very strong VOMB growth 22% compared with the first half of twenty twenty to more than $1,800,000,000 To better reflect underlying performance at the segment level, we've shown growth on a like for like basis where appropriate. The resulting growth in VNB of 30% Reflects our broad based performance across the group.
Following an excellent start to the year, AA China grew by 20% alone for withholding tax applied from July last year and remained the largest contributor to group VOMB. Hong Kong's VNB from our domestic customer segment grew strongly by 16%, reflecting the Quality of our agency force. The 4 segments outside Mainland China and Hong Kong that predominantly cover Southeast Asian markets Made up close to half the group's VOMB and delivered excellent growth of 33% in aggregate. Thailand posted impressive 52% VMB growth and accounted for the same proportion of group VMB as Hong Kong. This is a substantial increase from pre pandemic levels and reflects a significantly higher new business mix of protection and unit linked products.
Singapore also grew very strongly by 32%, while Malaysia was our fastest growing segment with VUMB up by 89%. As you can see on the slide, with other markets growth of 10%, despite ongoing COVID restrictions in many of our markets, All of our reportable segments delivered double digit BORB growth on a like for like basis. AA's unique portfolio of businesses, Diverse products and high quality distribution enable us to deploy capital at highly attractive rates of return for shareholders. Strong growth was supported by an improvement in VOMB margin, which increased by 4.6 percentage points to 59%. This included a positive shift in product mix and reduced acquisition expense overruns reflecting a strong recovery in new business volumes.
Protection business accounted for 64% of VOMB in the first half of twenty twenty one, up from 59% last year, While unit linked VOMV doubled year on year, increasing to 11% of group VOMV following the successful launch of new products in Thailand. These results demonstrate the quality of our new business and this is a major factor in our confidence in the sustainability And resilience of the group's future performance. EV Equity increased to a record $71,700,000,000 before shareholder dividends. Very strong VNB growth and continued positive operating variances of $363,000,000 Supported an increase in EV operating profit to $4,100,000,000 Positive capital market movements compared with our economic assumptions Contributed $1,000,000,000 in the first half. The effect of foreign exchange translation movements was negative $612,000,000 And the payments of the final shareholder dividend from 2020 was $1,600,000,000 Closing EV equity is shown after a further deduction of $4,800,000,000 for additional capital reserves and the present value of future unallocated group office expenses.
Our EV methodology uses Spot market yields and trends over time to our long term assumptions, which aim to smooth out short term volatility in markets. While AA is not immune to capital market movements, you can see from the sensitivities that our financial results remain resilient against short term market volatility. We have a substantial allowance for risk in our discount rates, including a risk premium of more than 500 basis points for the group overall at the end of the first half, a similar level to that at IPO. Last year, we changed our economic assumptions at the mid year. However, we've reverted to our previous practice And these remain unchanged from those assumed at 31st December, 2020.
You can see from the chart that our assumptions have remained prudent over And at the end of June, market rates were significantly above our long term assumptions. We believe that our financial discipline is a key differentiator for AIA. This helps us deliver a strong track record of sustainable value creation for shareholders over many years. The consistent outperformance of our operating assumptions has added more than $3,500,000,000 to embedded value since our IPO. We've also provided comparisons of AIA's embedded value using 2 alternative methodologies.
The first, a market consistent approach and second on a European embedded value basis. Under both of these, A's reported EV equity will be more than $10,000,000,000 higher. Our reported VOMB would also increase substantially by more than 20% on both bases. These results reinforce confidence and demonstrate the prudence of our long standing embedded value methodology over time. Now moving to IFRS earnings.
The group's operating profit after tax increased by 5% to $3,200,000,000 Underlying OPEC growth was 8% adjusting for withholding tax in China and normalized claims compared with the exceptionally low levels we highlighted last year. Operating margin remained very strong at 17.3%, underpinned by our high quality sources of earnings. AAA Hong Kong delivered 5% higher OPAT exceeding $1,000,000,000 in the first half. AAA China's increase was 4%, Equivalent to 10% excluding the effect of withholding tax. Strong new business growth drove increased earnings from both Singapore and Malaysia, While Thailand's OPAP was broadly stable as strong new business performance offset negative lapse experience and the effect of lower investment returns.
Other markets 12% increase was supported by positive claims experience from disability insurance policies in Australia. As with VOMB, the geographic mix of our OPAT is well diversified with the 4 segments mainly covering Southeast Asia Producing 44% of the group total. Our strategy has consistently focused on riding protection and long term savings products to provide affordable solutions meeting the real needs of our customers. In the first half of twenty twenty one, 98% of our TWP was from regular premium business, providing additional future premiums to our large in force book. AA's high quality sources of earnings are predominantly insurance and fee based, which combined with our geographically diverse portfolio Underpins the resilience of our earnings growth.
Our disciplined strategy of focusing on value And consistently looking to improve the quality of our portfolio has delivered a strong track record of double digit compound annual growth in OPAD. Operating profit after tax has added more than $43,000,000,000 to shareholders allocated equity since IPO. Shareholders allocated equity provides a clearer reflection of the underlying drivers of the change in equity before the IFRS accounting treatment of bonds. While movements in the market value of equities causes short term volatility in net profit, as you can see from the very small cumulative investment return movements, These fluctuations have averaged out over time. After shareholders dividend payments of more than 12,400,000,000 Shareholders' allocated equity has increased by more than 10% per annum compound to $48,900,000,000 Finally, capital and dividends.
The group's regulatory solvency position, taking a fully consolidated view of capital adequacy based on a submission of minimum regulatory capital requirements across our businesses. Including $5,800,000,000 of existing senior notes Approved as eligible capital since the end of 2020, our cover ratio increased over the first half to a very strong 4 12%. We've also been constructively engaged with the Hong Kong Insurance Authority in the formulation of the new risk based capital regime That will apply to AIA Hong Kong. The new regime is likely to be closer to an economic approach And hence more reflective of the way we manage our business. As a result, we anticipate that our regulatory capital position will remain very strong on this new We expect the rules to be finalized by the end of this year.
And while we still believe that the first fully effective reporting date will be in 2020 4, the Hong Kong Insurance Authority is engaged with the industry in developing plans for early adoption. Subject to finalization, we intend to disclose our capital position under Hong Kong RBC in our 2021 annual results. We also intend to provide further details of our capital management plans. As you know, we ensure that we maintain a prudent balance sheet through capital market stress conditions, taking into consideration the financial flexibility needed to fund our significant new business growth opportunities and support our prudent, sustainable and progressive dividend policy. Underlying free Surplus generation was $3,400,000,000 in the first half.
We reinvested $921,000,000 in new business growth And free surplus gained $3,900,000,000 from positive capital market movements. Overall, free surplus increased to $17,900,000,000 after the payment of shareholder dividends. Since IPO, our cumulative underlying free surplus generation is close to $44,000,000,000 This demonstrates AIA's focus on high quality, profitable new business that generates strong and stable earnings and cash flow. With such attractive reinvestment economics, our ability to invest capital in new business growth remains an important priority And a significant differentiator for AIA. We've reinvested over $15,000,000,000 into new business, generating over 26,000,000,000 of net VOMB.
Over time, this investment in profitable new business growth Supports the generation of increasing amounts of free surplus in cash, which internalizes to invest in further new business growth, maintain a prudent balance sheet and pay progressive dividends. This has been clearly demonstrated in our results in previous years and again in the first half of twenty twenty one. In aggregate, we have paid shareholder dividends of $12,400,000,000 And we have selectively taken advantage of inorganic opportunities to drive further value. Our stock of free surplus has increased by $12,900,000,000 since IPO in line with the growth in our balance sheet. We believe that the combination of AIA's strong capital generation and substantial growth opportunities is rare in the insurance industry.
AA has delivered annual shareholder dividend growth of 17% per annum compound since 2011. The Board has declared a further 8.6% increase in the interim dividend to HK0.38 dollars per share. The Board continues to follow AI's established, prudent, sustainable and progressive dividend policy, allowing for future growth opportunities and the financial flexibility of the group. In conclusion, the group has delivered another strong set of results in the first half of twenty twenty one with growth across all of our key financial metrics. VUMB was up by 22% And all of our reportable segments delivered double digit VMB growth on a like for like basis compared with the first half of twenty twenty.
BOMB was also higher than pre pandemic levels for all of our segments other than Hong Kong. EV Equity and shareholders allocated equity reached record highs and our very strong financial position is reflected in a significant increase in both free surplus and our group LTSM cover ratio. The Board has declared a further increase of 8.6% in interim dividend. Our results have once again demonstrated our ability to deliver strong and consistent performances across growth, earnings, capital and cash That will allow us to sustain the delivery of attractive financial returns to our shareholders for a long time to come. I'll now hand back to Eun Siong.
Thank you, Garth. AI is a great company with significant competitive advantages and incredible opportunities to grow shareholder value. As you can see, Asian economic growth is expected to remain strong and structurally resilient, creating unprecedented levels of wealth. By 2,030, Cumulative new GDP across AIA's markets will hit $16,000,000,000,000 the same as the rest of the world combined. As incomes rise, spending on life and health insurance accelerates with a step change as people join the middle classes.
And what makes this so compelling for Asia and for AIA is the absolute size of the populations where this is happening. Across our footprint, the middle class population is set to rise by 1,100,000,000 by 2,030 to a total population of 2,600,000,000. The compounding of rapid economic growth, Increasing excellence and rising insurance demand generates immense and resilient potential for life insurance in Asia, and AIA is best placed to capture this opportunity. COVID-nineteen has forced the acceleration of many of these long term structural trends and brought financial protection, wellness and health care increasingly top of mind for consumers. Our recent research shows that more than 70% of people agree that insurance has become more important for meeting long term savings and Protection needs.
Since the beginning of the pandemic, we have seen a greater demand for our protection products, accounting for close to 2 thirds of our VOMB in the first half and growth of more than 30%. VOMB from AIA Vitality Integrated Products has increased by more than 70%, delivering improved health outcomes for our customers. There has been an exponential increase in consumers using digital and online capabilities. Following an initial spike in April 2020, telemedicine usage has been sustained at 38 times pre pandemic levels and engagement with digital health applications continues to grow rapidly. Our premier agency completed more than $500,000,000 of new business sales in the first half using remote capabilities that did not exist before the pandemic.
The structural need for our protection products, Health and wellness services and high quality advice has never been more apparent. And our purpose Of helping people live healthier, longer, better lives has never been more relevant. Through aligning our strategy with the structural, Social and economic growth drivers in the region, we are building on AIA's strong track record and remarkable competitive advantages to drive profitable growth well into the future. Let me now take you through how we are capturing the opportunities available to AIA on a regional basis, starting with ASEAN. We see enormous potential for growth for our businesses, given low insurance penetration, strong economic growth and substantial urbanization that will see the middle class population exceed 500,000,000 by 2,030.
AIA has a long history in ASEAN with significant scale in each of our markets. Today, Thailand, Singapore and Malaysia together contribute 1 third of the group's DONV. Adding Vietnam, Indonesia and Philippines, AIA ranks number 1 by total A and P across these six markets. We have strong operating models with a proven track record. Disciplined execution of our strategy ensures that AIA continues deliver growth as we further scale our primary agency and leverage our leading bank and digital partners.
Our digital tools have enabled us to accelerate recruitment in agency without compromising quality. These tools also help offset disruption. While COVID-nineteen containment measures tightened across many of our markets, We delivered strong VOMB growth compared to pre pandemic levels. I'm confident that AIA is in prime position to build on our strengths and seize the enormous opportunities of ASEAN. India presents another Exceptional long term opportunity for our group.
The strength of economic growth combined with a young, educated and rapidly urbanizing population is unmatched. Half the population are under the age of 26. And within the next 4 years, 20% of the world's working age population is expected to be Indian. By 2,030, Middle class India will double in size to more than RMB 1,000,000,000. Rising wealth and health care costs are driving increased life insurance demand, and penetration levels are rising from very low levels with gathering speed.
Our joint venture with Tata has a highly focused and differentiated multichannel distribution strategy. We are making strong progress in scaling our Premier Agency model in India as we aim to replicate our success in other markets. Leveraging AIA's vast expertise across Asia, we have significantly grown the number of agency leaders and agents. And our focus on quality, disciplined execution and digitalization results in the most productive agents in the market. We have a diverse partnership business, which includes leading banks, brokers and digital partners.
Tata AI's pioneering use of technology, digital and analytics leads the group's approach to delivering seamless connectivity and a best in class customer experience, driving our success in a multitude of open architecture partnerships. Our high quality multichannel distribution strategy has delivered strong growth, and I'm incredibly proud that our differentiated product strategy has made Tata AIA the market leader in retail protection. Even as India faced a new wave of COVID-nineteen cases and the resumption of lockdowns, our online and remote tools enabled business continuity and growth in the first half. We have made tremendous progress in our journey so far, and the long term outlook for life insurance in India is incredibly exciting. AIA has unrivaled capabilities to meet the growing needs for with life and health insurance in Hong Kong and the Greater Bay Area.
The large and expanding protection gaps across mortality, Health and retirement are in urgent need of closing for the affluent and aging population in Hong Kong. AIA's ability to meet these needs is unmatched through our Premier agency that provides high quality advice on our Comprehensive product suite. Our market leading agency has 29% of our agents MDRT registered, and AIA Hong Kong is the number one MBRT company in the world. As we look across to the Greater Bay Area, There's huge potential for AIA given the combination of superior economic growth, low insurance penetration and a large and growing highly educated middle class population. AIA is unique with 100 percent ownership of our operations, enabling our shareholders to fully benefit from the growth prospects from this dynamic vision.
AIA is ranked in the top 3 for agency new business in the GBA cities in Guangdong province, and of course, We are the leader in Hong Kong and Macau. The recent addition of the Bank of East Asia as a new strategic Distribution partner with a long history and one of the largest networks among foreign banks further strengthens AIA's competitive advantages in the GPA. As regulations evolve, our businesses are ideally positioned to leverage the exciting prospects available to us. Finally, Mainland China, where our strong track record speaks for itself. Even with the effects of the pandemic, since 2015, we have delivered compound annual growth in VONB of 28%.
Year by year, you can see that our performance has been broad based across our geographies. Our big five cities of Beijing, Shanghai, Shenzhen, Guangzhou and Suzhou have grown strongly, while the rest of the cities Where we are present have also grown rapidly, proving our ability to replicate our Premier Agency in new cities. China's economic progress continues to drive the expansion of its middle class consumers, further increasing the demand for long term savings and protection. By 2,030, AIA's The target market even before expansion into new regions will double, providing huge headroom for continued growth as we deepen our geographic presence. I said earlier, we are accelerating our expansion into new provinces across Mainland China with the recent launch in Sichuan Province followed by approval to prepare our new operation in Hubei.
On the left, you can see our impressive results as we expanded our premier agency model into new cities outside our big five. The combination of strong agency growth and higher productivity generated a tenfold increase in D O and D within 5 years. We generated more than $110,000,000 of VONV from these cities in just the 1st 6 months of 2017, and they continue to power ahead. In each new city, we successfully replicate our model, supported by management from our established operations, our incredibly powerful digital tools and our scalable operating model. As we enter into new provinces, our potential target market increases 5 times.
Our recent approvals add more than 100,000,000 potential new customers to AIA China with 300,000,000 more to come from our other target to provinces. AIA China is built to capture the extraordinary opportunity that Mainland China presents for us. With our primary agency at its core, AIA's differentiated model delivers strong and sustainable results. Our agents earn more than 3 times the average local income, and they are 4 times as productive as the industry average. This is powerful proof of our successful model, enabling us to attract, develop and retain the best agents.
Our high levels of digitalization drive enhanced productivity, efficiency and scalability, ensuring that our strict quality standards and leading customer experience are maintained as we expand, And our innovative and difficult to replicate propositions integrated with AIA's health and wellness ecosystem allow us to meet the growing I'm very confident that our differentiated strategy and disciplined execution will continue to deliver growth for many years. As you heard from Garth, AIA's financial discipline It's the foundation of the group's strong and consistent delivery and underpins our ability to capture all of the tremendous opportunities across Asia. The execution of our strategy will extend our track record of superior profitable growth, driving strong earnings, free surplus generation and prudent, sustainable and progressive dividends. As I have shown you, AIA is the right company to leverage the powerful structural drivers of growth across Asia. We operate in the most attractive markets in the world for life insurance.
We are 100% focused on Asia and have a high quality, diversified business with substantial growth opportunities in all our markets. Our strategy is clear and ambitious, And I am confident through focused execution, we will achieve our purpose of helping millions of people live healthier, longer, better lives, while delivering profitable growth and shareholder value well into the future.
We'll now move to the Q and A session and this will be conducted by teleconference. So if you wish to ask a question, You need to make sure that you're dialed in. I'm Lance Burbridge, Chief Investor Relations Officer. Together with me today, we obviously have Yun Seong and Garth. We also have our regional Chief Executives and other members of our Group Executive Committee.
So with that, we're ready to take your questions. Operator, please start the Q and A.
Ladies and gentlemen, we will now begin our Q and A session. Our first question comes from Jenny Jiang at Morgan Stanley. Please go ahead, Jenny.
Hi, management. Good morning. Thanks for this great presentation and very good set of results. Two questions from me. First of all, I want to talk about the Hong Kong market first because we achieved very high growth in all the markets Except for this Hong Kong, there might be still some challenge in the next 6 to 12 months.
Maybe management can give us a little bit of Update on your plan to stabilize this operation and just to make sure agents are still happy, Maybe give us a little bit details in terms of the measures we're taking. We've seen that Macau is very strong And cost is coming down as well. Anything else, especially what's driving this very strong growth in the local segment, I think Hong Kong was Perceived as a more saturated market before. So second question for me, of course, is China. I think everyone was focusing on China And our performance is very, very resilient, and especially amid this industry slowdown is very impressive.
Can we ask, so what we did differently from local peers? I'm sure Yuanxiang probably know the market very well given your Past experience. And maybe you can share with us your view on China's long term growth prospects. I know we can increase investment in China post life. So we're apparently very positive about China as well.
I think there's some popular concern That the critical illness segment is getting slightly saturated than before. Do you agree with that? What are other Big opportunities in terms of other product segments. That's all for me. Thank you very much.
Okay. Thank you, Jenny. Yes, I'm very pleased with the strong set of results. I think this demonstrates the quality of our people, our focused execution of our strategy, The resilience of our operating model, which is underpinned by our best in class technology and digital and analytics capabilities and our very disciplined financial management, I I think as demonstrated, we achieved growth in all our segments. Compared to pre pandemic levels, We also achieved growth in all segments except, as you pointed out, Hong Kong.
But I'm also very pleased with The result that we achieved in Hong Kong, we achieved significant growth in the domestic segment. As you know, the borders remain closed with the Mainland China, and we believe that from what we have observed in Macau that with the borders opening in the future, that the MCD business will come back. I'll hand over to Jacky to talk a bit more about Hong Kong.
Yes. Thank you, Yunshi. I would like to say that, in fact, Hong Kong will be growing this year compared to last year's first half, And the domestic segment grew by 16%. In fact, I would say the Hong Kong agency force is a clear market leader In Hong Kong, it ranked number 1 in the agency. And our Hong Kong agency also has 29% of the agency being MDRT.
Actually, combining Hong Kong and Macau, we have over 6,000 MTRT registered member in this year. Hong Kong, actually, in this year first half, We really tapped into the opportunity of protection. We saw a lot more protection product compared to last year. In fact, our VLMB from our 1, 3 Health insurance screens are both double digit. Our real NB from vitality integrated product grows strong double digit compared to last year.
So I would like to say that the Hong Kong agency momentum has been very strong and we also registered double digit increase in our agents' equipment in the first half of this year.
I think on China, As you saw, China remains our largest contributor to VUMB. And in the first half, we achieved very strong results From Miele China, on a like for like basis, our B2B grew by 20%. I think this is driven by our very distinctive and highly unique Premier Agency model, our focus on quality. As we showed in the presentation, in terms of all the quality metrics, activity ratio, active income per Agent, BONB per agent, I think we have demonstrated that we have a very, very strong franchise in Mainland China. We see that there's significant opportunities in our existing There's a lot of headroom in our existing provinces.
Currently, our penetration in the The recent territories remains low. And because of our unique position, we will be able to enjoy Further expansion opportunities and as we demonstrated as we showed in our presentation, As we expand across all these new provinces, our addressable market will grow by 5 times. So I think we are very excited about the opportunities. I think obviously, you mentioned about the and all these low cost health insurance that's being promoted in Mainland China. The way I see it is that these products actually provide a very basic level of coverage.
Our Premier Agent Agency model is really targeted at the needs of very highly but the middle class and more affluent segment of the market and the In fact, I believe that the popularity of these Low cost insurance products will improve the propensity of the population to buy even higher And this is something that's been demonstrated during the first half of twenty twenty one.
Okay. Next question please.
The next question comes from Thomas Wang at Goldman Sachs. Please go ahead, Thomas.
Thank you. Congrats on the results. If I can ask to Deep dive, digging on China a little bit. So Sichuan Province, we see there's more than 400 agents. So that's a very A fast expansion compared to sort of what we previously talked about for Tianjin and Shijiazhuang, which is like about 1 to 2 years to get to kind of 300 to 400 agents, that kind of level.
Can you sort of update us how you're thinking now on Whenever you open a new branch, the pace of expansion in that new branch and also Give us some color on how Tianjin and Shijiazhuang doing because I see the slide from contribution From these two city plus Chengdu, but I'm assuming Chengdu is relatively small. So I'm assuming that's mainly Tianjin and Xijia Zhang. So a little bit update on maybe the number of agents There or the say the pace of expansion in Hebei province. Yes, thank you.
I'm very pleased with the preparations and the launch of our Sichuan Branch, I think Qin did a really fantastic job. And the fact that we were able to launch The Sichuan branch within 5 months of the approval of the From CBIC to start preparing for the Sichuan branch, it demonstrates that we have a very well oiled and A proven model for preparing for new branches and this will be very important for us. As you know, We are in a very unique position that over the next few years, we will be in a position to be opening up in in more and more provinces. We recently got our approval to prepare for our Hubei branch. And I can also say that the progress in terms of the preparation is also very Well, it's on track.
And I think and We have a very good relationship, and we are very well regarded by the CBIC in China and we continue to have a very high regard for AIA for the quality of our Operations and we are in constant dialogue with CBIC to accelerate our expansion efforts across the Mainland China. So I'm very pleased with the progress so far, and we hope that We will be able to launch our Hubei branch and to be able to obtain approval for subsequent branch openings. I'll hand over to Jacky to talk more about the progress with Sichuan and with Tianjin and Sichajuan. Yes.
Thank you, Yongshan. In fact, the key differentiation of A China is our PMA agency force. So whenever we go into a new province, a new city, we want to build a very strong solar foundation. So we focus on quality equipment. When we went into Tianjin, Sijiazhuang and lately Sichuan, we have bought this strategy.
We want to grow a way lay down a very strong foundation for our people. And we are very happy to see that for Sichuan, since our opening of The business in late March until June, we have about 400 agents already and over 70% of them are university graduates. And in fact, as a whole, Tianjin, Shijiazhuang and Sichuan together in the first half of twenty twenty one, our RMB grew by 86% And the number of active agents actually doubled. So we are able to continue to attract the quality new agents to join our new operation, and we will continue to maintain these high standards as we expand into other provinces and new cities.
Thanks, Thomas. Next question please.
The next question comes from M. W. Kim at JPMorgan. Please go ahead.
Good morning. So congratulations as a very strong set of the result. I have 2 questions, if I could. The first, Now the business scale returned to the pre pandemic level. Today, there was several slide To discuss the strategic priority.
So under the big picture, what would be the important driver To accelerate the journey from here, would it be the digital or the distribution channel? And also, For last 18 months in pandemic, what was the company's great lesson and then the new discovery In terms of the business strategy perspective, my next question is about India. So I want to ask the Tata AIA Life. So based on the local disclosure, The Tata AIA, the new life policy looked have the largest insured sum for policy in the industry. So could you please share a bit more about the next step, including the further capital deployment outlook into the country?
Thank you so
much. Okay. Thank you, MW. Now On the strategic outlook and strategic priorities, I think first, I'll touch on Our lessons from COVID, right? As we showed in our presentation, We have gone through a year and a half of living through the pandemic.
And what we have seen and we have been very encouraged is the fact that 70 more than 70% of consumers in Asia say they plan to Put aside more for savings and that insurance has become more important to meet their long term savings We also showed that strong growth in our Protection BOMB, Great increase in our vitality integrated product sales. So I think this is One thing that we have observed very clearly from the pandemic and that is the very rapidly changing Consumer mindset and this rapidly changing consumer mindset has really accelerated some of these very Strong structural drivers for life insurance and health insurance in Asia. I'm very Convinced that we are in the right region for life insurance and health insurance, and we will continue to be focused in Asia. The opportunities for Tremendous in China, in ASEAN, and you have a question about India. We think that India Really presents itself as a very attractive market for AIA with enormous And I'll hand over to Bill to talk about India.
Thanks, Yinsheng. Thanks, MW, for the question. Look, we recognize the regulations now allow FTI to 74% in India. But as you would expect, we wouldn't comment on any of our Partnership arrangements. But what I can share with you, we were one of the first to increase our stake to 49% back in 2016.
And I think we're exceptionally well positioned to take the opportunities that India will give us in the coming years. I think it's fair to say there's been short term challenges as everyone has seen through COVID. But even through that period, NDA has delivered strong results, very much premised on our multi distribution strategy and our focus on protection. As you mentioned, that focus will continue. We're number 1 in retail protection.
We're also number 1 in agent productivity, And we've got an exceptional array of bank partners that again both agency and partnership delivered strong growth. As a partner, we have TADA as our JV partner, is an outstanding partner, very aligned on building a quality business focused on protection. And looking at the opportunity ahead of us, it's a large population predominantly under the age of 30, Projected by 2,030 to give us 1,000,000,000 middle class and affluent. So great opportunity, well positioned with an outstanding partner. So very excited about India in the future.
Okay. Thanks, MW. Next question, please.
Our next question comes from Kailesh Mistry at HSBC. Please go ahead, Kailesh.
Hello. Good morning, everyone. I've got three questions actually. First one is on China, unsurprisingly. Can you just talk a little bit about growth in total agents and growth in total active agents In China over the first half.
On China Post Life, Once it's completed, what are the prospects for a distribution relationship for AIA China? And could you just elaborate on whether those would then be limited to the provinces in which you have a presence? Second question is around this statistic you've given on social media integration, which has led to around $100,000,000 of sales. What's the product mix of these? Is it basically the same as the overall business because it goes into the normal sort of Agency hopper process.
And then lastly, can you provide a little bit more color on The product trends driving both Singapore and Malaysia new business value growth in the first half. Thank you.
Maybe, Jacky, you'd like to talk about China. Bill, can you talk about this?
Yes. Thank you, Yunshan. So let me start by talking about the China Our growth in agents and also our agency force and China Post Life. First of all, as I always mentioned and emphasize any China focus on a differentiated agency strategy, which is a PMA agency strategy. And in the first half of last year, while there was a pandemic in Mainland China, there was a serious lockdown.
So the agency equipment activity, training, etcetera, are all go to online. And in fact, after the accounting measure, I'll quickly relax as the COVID-nineteen situation has been well controlled in China. We shift Those agents' equipment and training activity back to the offline. And in fact, we found that online equipment is more difficult for selection and ensuring the agent are really committed to the career, etcetera. And because of our very stringent Production and activity requirement, so many of those online equipment agents, they fall off during the first half of the year.
But in fact, when we look into the recruitment for off line, actually, we had growth in our recruitment number in first half this year compared to our first half last year. And our China agency activity as 8% increase compared to the first half last year as well as our productivity increase both in terms of case per active agent And more notably, our average income per active agent actually grew by 15% compared to first half of last year. So I would say, overall speaking, we continue to maintain our high quality payment agency force in China. And as to China Post Life, I want to emphasize that this is really an investment of AIA into China Postline, which is very complementary to our existing operation of A China. A China focused more on the mass F1 and F1 market while China Post Life gives us the opportunity to penetrate the big whilst a mass majority of the China market.
So actually, Where AIA or China Post site operate in Singaporeans or not actually is not really the key. It gives us a complementary opportunity to penetrate into the bigger, larger customer segment in Mainland China.
Yes. Just to add on to what Jackie said about the China agency force, I think I had the opportunity to visit our agency offices in China last year and meeting with all the agency managers and Many of the agents and I'm really taken are struck by the quality of our agency force in China. This It's reflected by the strong performance of our Mainland China despite the fact that the China market, The first year, if you see the performance of some of the other competitors has been a bit challenging. But I think one point that I'd like to highlight is the fact that because of our differentiated model, Our agents actually are targeting the middle class and affluent segment of the market. And also And because of the quality of our agency force, they actually earn a much better income than compared to the rest of the industry and in fact compared to somebody who's working full time in the respective city that they operate in.
We demonstrated that the average income of our agents is 3 times the average income of the working population. That means that It is quite attractive for somebody to come and work in AIA as an insurance agent, I think, because they can earn a much, much better income. And Being an agent, they have a lot more freedom. They don't have to be constrained in the office setting. Now on China Post Life, yes, as Jackie explained, it's an investment which will allow us benefit from China Postal Life's very targeted mass market customer segment.
At the same time, we also have exploring business cooperation opportunities with China Postal Group and China Postal Bank. So as part of this business cooperation, it will also involve in distribution of AIE China's products where to the appropriate segment in the markets or in the cities or provinces where AIA has presence in.
Thanks. Good morning, Kavish. Thanks for the question on social media and marketing. Just stepping back a little bit, I think Focusware AI is continuing to invest significantly in our end to end digitally in a primary model Right across digital tools, we've invested. We've seen some of the very high adoption rates Driven the resilience of the business in our premier agencies.
We've got 100% remote digital sales capabilities across all of our markets. 95% of our new business is digitally submitted, over 45% of our iRecruit Basically giving the power of being their own Chief Marketing Officer. So if you look, it's still in the very early stages Of rollout, we've rolled it out across 6 markets in H1, China, India, Singapore, Malaysia, Philippines and Hong Kong. It's already generated over 1,000,000 leads and 100,000,000 AMP. Just to give you two proof points and again, It's still in the early stages.
In Malaysia, our agents are 40% more productive if they're using the social media platform. And in Singapore, we had an outstanding result on the back of a very simple COVID protection where we generated over 150,000 leads in H1 And that produced over 10% of the total agency sales in H1. So still early days. It's very much about empowering our agents to be able to again Engage and nurture their prospects within their social media environment and use very simple protection products, Then they've got the opportunity to upsell and cross sell our more sophisticated protection, unit linked products, etcetera.
Okay. Next question please.
The next question comes from Michael Chang at CGS CIMB Securities. Please go ahead, Michael.
Hi. Thanks for taking my questions. It's Michael Chang here. On the first question, basically, this is probably more for Bill. The unit lead performance was very strong.
Can you just maybe elaborate on what succeeded so well in Thailand? Because I recall that way back in, I think, 2013, Next generation Unit Linked was launched back then. Unit Linked only seem to have taken off this year. Why has it taken So Longo, maybe to what extent can this strong performance in unit length plus the riders attached to it be rolled out to other markets? Second question is maybe Garo or Sai Chung.
On the RBC, I appreciate that it's going to be Adopted and there's going to be more details announced at the full year results. But without giving exact figures on the impact, What's your preliminary expectations in terms of the direction of the impact? Is it positive or is it negative in terms of the improved ratios Or at least the buffers are over the regulatory minimum requirement. And then lastly for China, just some feedback. I recall maybe a couple of years back when AIA was expanding into new regions.
So graphical proximity to Current regions where it operates and maybe the more coastal seaborne, the more affluent regions, it seem to be more a priority. But looking back, Sichuan and Tubei seems to be a bit more of a surprise. Maybe AI could elaborate on What's the question, if any, in terms of the next regions that it's looking at for expansion? Thank you.
Bill, thank you.
Hey, good morning, Michael, and thanks for the question. Yes, Thailand, as you've seen, we saw a very strong set of results, 52% VUNB growth and a number of key initiatives that was driving that. As you mentioned, Unit Linked sales is one of them. As you also mentioned, tracking back to when we launched the FA program, which is key to be able to drive the change in product mix. Unit linked with high rider attachment, We've taken by the way as best practice from our businesses across Malaysia and Singapore and continue to roll this out across Asia.
But you need a More full time, more professional agency force that are well trained and very competent to be able to engage with customers and sell these type of more So as we've progressed our FA journey and today our FA agents are about 15% of our total agency force. They represent 30% of our total VUNV. And hence, as you can see over the last 6 to 12 months, we've been able to scale That unit linked product mix with a high rider attachment giving us a significant improvement in margin To 93%, but that's also being driven and as you saw from Yen Seong's presentation, there's a much higher awareness, Not just in Thailand, but across Asia as we've done our consumer research regarding protection, the need for protection for obvious reasons. What we've also seen in Thailand is strong recruitment, strong double digit recruitment and high adoption of our new digital remote sales. And we were the 1st in the market on our iSign digital remote sales tool to be able to remotely sell investment linked products, which again is a distinct advantage
I think we have a really powerful brand name in Thailand. I think Up to a third of our insurance policies issued in Thailand actually have been come from with AIA. So our brand name, our recognition, we've been Thailand, what, 90 years?
90 years. Yes. And I think that all of that driving through has also given us a very strong growth in MDRTs, 30% growth for number 1 in Thailand as we are across 7 different markets in Asia for MDRT. On RBC?
Yes. On RBC, thanks, Michael. Our solvency position under the current KIL remains very strong. The new regime is going to be more economic in its approach. And as a result, It will be more reflective of the way that we run the business.
We've been involved in the quizzes. We've been actively engaged in the dialogue. The details, the final details remain unclear, but we expect that the final basis will be Clearer and be issued during the rest of the year in the second half. With that, we'll have an absolutely clear position. We do That our solvency position will remain very strong.
And as I said, it will be aligned better with how we manage the business.
Yes. And on China expansion, yes, we are currently vigorously preparing for our Huobi branch launch. And in our presentation, we have also I told you that we have identified 10 more provinces or municipalities, which will be our priority in terms of New geographic expansion and these new these 10 provinces or municipalities We'll increase our addressable middle class target market by 300,000,000. I think we all know that in China, these provinces is the equivalent of a midsize country in the rest of the world. So we are all very excited by about the opportunity for us to be able to expanding to these new provinces over the next few years.
And then I think we have time for one more question.
The final question comes from Leon Qi at Daiwa. Please go ahead, Leon.
Thanks very much for taking my question. And once again, congratulations on the excellent set of results. I have three questions Today, first question is a follow-up on China Coastal Live. In the same China Coastal Live may not be Terrible with our existing bank insurance relationship in mainland China. Is there any comparable business models that we are looking at either within China or in our Asia regional operations.
And how would you see the current The growth model of China Post Life, given it has been relatively more capital heavy over the past few years, And how would you define a success after a few years in your cooperation with China Coastal Live? And second question is on your capital management. Given Baox has just touched on Hong Kong RBC and we are likely to have more details Through the rest of the year and also in Mainland China, we have upcoming C RAS Phase II, which may impact our solvency ratio in China, how would you see your group level LTSM ratio under GWS? Is there a comfortable level, especially after RWC to be finalized in the next few months? It seems that over across the region of your operation, it will be a relatively quiet period in terms of our regulatory changes on the solvency.
Would you be more actively using our capital to do M and As for inorganic growth Or you will revisit your dividend payout ratio given the very comfortable level of solvency currently and potentially some benefits from RBC. Lastly, I have a question for Yuanxiong again. Well, Yuanxiong, you basically joined AIA Around one and a half years ago, when exactly when COVID just started, what is the biggest Because of surprise, it could be either positive or negative since you joined AI one and a half years ago. And it could be either related to COVID or not. What is the biggest difference to your expectation on Hadoopai or the overall Asian life insurance market compared with 1.5 year fiscal.
Thank you very much.
Okay. On China Postal Life, I think when we announced the investment into China Postal Life, we actually did very extensive Q and A with a lot of investors. So I think this is a Very good investment. Through this investment, we will pick up 25% in China Postal Life. And China Post and through this, as you know, China Post Life is really targeted at the mass market In Mainland China, they have a 600,000,000 they have access to 600,000,000 customers, 40,000 financial outlets and China Postal Group, which is the parent of China Postal Life, I believe as the one of the most powerful distribution networks addressing the mass market.
So by investing in the 24.99% in the China postal line will allow us to benefit from The growth in value in the mass market, this is very complement with our AIA China strategy, which is very targeted at the middle class and affluent segment of the market. And AIA China Remains our primary focus in and the primary Core strategy in the China market. We did extensive due diligence during the investments, and we filed The investment case for China Postal Life, the financials are very compelling. And China Postal Life itself has a very unique licensing and operating model, which allows them to expand very rapidly in a very cost efficient manner. Now you talked about The capital efficiency of the product portfolio of China Post Life, and we have seen a shift towards more Higher margin and less capital incentive new business portfolio in China Post Own Life and not just in China Post Own Life, but also in the bank assurance market in China as a whole.
So I think We are still going through the regulatory approval process, so I cannot give you too much information about China PostNLife, but overall, we are very excited about this investment, which will which is highly complementary to our AIA China's growth strategy. Now On capital management?
Yes. On capital, as I said, Leon, we'll assess our position After we get the RBC finalized and actually the CROS Phase 2, CROS 2 is also not yet issued and finalized, Along with our usual statements on capital, that remains unchanged. Our first priority is to maintain A prudent balance sheet after stress. The second is to grow our business organically and that's where the focus will be. And again, you've seen good growth in the first half, 22% growth in VUMB, and we produced $26,000,000,000 of VUMB since IPO.
We talk about inorganic opportunities that come along occasionally. You saw the Bank of East Asia Opportunity in the first half, which we're very excited about, particularly in the GBA. And then Cash and so on back to shareholders. We always look to ways in which we can increase value for our shareholders. You saw another 8.6% increase in the dividend.
We've continued to do that $12,400,000,000 of dividends back to shareholders since IPO. With all of that, we would expect our LCSM position to remain strong even though as I say, the RBC and CROS Not clear yet, but hopefully both will be finalized by the end of the year.
You asked me about I took up the CEO jobs from 1st June last year. So you asked me about what's the positive surprises and I'll talk about 2, one is I think the quality of the talent or the people that we have in AIA and The bench strength itself is also quite something that really Came across very strongly in my 1st year as CEO at AIA.
I think the
second really pleasant, I think, positive surprise is the fact that we have a very diversified portfolio of businesses, Right. So I think China is very important, but China is just one of the growth engines of The rest of Asia actually contributes to a very significant Potential, it got to be a very significant contribution to our BONB and our operating profit and our EV. And we are growing the businesses in all these different segments. So As you saw in the first half, ASEAN showed a very strong new business growth in the first half. And this really supported this was a very important contributor to It's a very strong set of results in the first half of twenty twenty one.
Thank you.
Ladies and gentlemen,