AAGIY AIA Group Ltd (PK)

AIA Group Ltd.'s full-year profit fell amid currency volatility but new-business value rose, leading the pan-Asian insurer to boost its dividend.

The insurer, the only wholly foreign-owned insurer in China, said it would increase its final dividend to 51 Hong Kong cents a share.

Markets across Asia slumped in the second half of the year, after a dazzling first half, amid growing concerns that China's economic slowdown was worse than the government's data show.

Still, Chief Executive Mark Tucker said on Wednesday that the insurer remains committed to the region.

"Despite the recent volatility and uncertainty in global financial markets, Asia remains the most attractive and dynamic region for life insurance in the world," Mr. Tucker said in a prepared statement, pointing at the region's rising urbanization and disposable incomes.

AIA, the world's fourth-largest insurer by market capitalization, said its new-business value, a key measure of insurers' profitability, rose to $2.2 billion in the year ended Nov. 30, a 26% increase from the year earlier when adjusted for currency fluctuations.

The value of new-business margins rose to 54% from 49.1% a year earlier, while annualized new premium sales—a measure of new business activity—increased to $3.99 billion from $3.7 billion a year earlier.

Meanwhile, net profit fell to $2.69 billion from $3.45 billion a year earlier.

AIA reported strong results across segments except for South Korea, where regulators have enforced a direct-marketing ban.

Business in China rose 45%, on a constant-currency basis, while Hong Kong saw a 32% increase and South Korea a 39% decline.

Analysts had expected increases in China and Hong Kong, with Chinese mainlanders helping drive sales of insurance products in Hong Kong.

AIA, once part of U.S. insurer American International Group Inc., operates in 18 markets across the Asia-Pacific region.

Julie Steinberg contributed to this article.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

February 24, 2016 19:25 ET (00:25 GMT)

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