(Yicai Global) March 13 -- AIA Group's shares dropped to the lowest in more than a year this morning after the largest listed pan-Asia life insurer revealed that its 2019 earnings growth slowed down faster than expected amid tumultuous home turf sentiments. 

AIA's stock price [HKG: 1299] fell 6.1 percent to HKD64.60 (USD8.31) this morning. That is the weakest since late 2018. But in the afternoon, the shares climbed back up to HKD68. 

Value of new business, a key gauge of profitability, rose by 6 percent to USD4.2 billion, down from 18 percent growth in 2018, the Hong Kong-headquartered company said in its earnings report released yesterday. HSBC Global Research had predicted a 9 percent increase.

Looking ahead, this year is not necessarily any better. The low interest rate environment and the Covid-19 epidemic are both expected to cause significant short-term impacts on the company's performance over the year, the firm added. 

Hong Kong, one of AIA's main markets, was hit by social unrest in the second half of last year, and fewer mainland tourists visited the special administrative region, said Chief Executive Ng Keng Hooi. VNB in Hong Kong fell by 5 percent to USD1.6 billion. Meanwhile, that of the mainland surged by 27 percent. Malaysia logged a 7 percent boost and Thailand a 6 percent uptick.

The focus is shifting toward the mainland. Late last year, the parent filed with regulators, looking to give its Shanghai life insurance unit a separate legal entity status amid loosening ownership restrictions, the CEO added.

Last year, the company's annualized new premiums climbed by 2 percent to USD6.6 billion. Its total weighted premium income rose by 13 percent to USD34 billion. 

Founded in 1919, AIA covers 18 regional markets. 

Editor: Emmi Laine