New AIA boss wants to win back Asian insurance crown

Hong Kong-based Mark Tucker, 53, has been in the hot seat only since July 19, but has already visited 14 of AIA's 15 regional markets.

His whirlwind approach seems designed to sweep away lingering unease generated by the recently aborted buyout bid launched by a smaller rival, British-based Prudential.

The Englishman, who once played professional football for London club Barnet, spoke to The Straits Times following a fortnight's whistle-stop tour of different offices.

“What has impressed me is that the profitability of the business remains strong and the solvency of the business remains strong. The quality of people managing the business is very good,” he said.

The industry veteran helped build Prudential's Asian franchise in the 1990s while based in Hong Kong and was chief executive from early 2005 until last September.

“When I arrived in Asia, in the 1980s, AIA was the pre-eminent name,” he said. It has since slipped in some rankings, “with the emergence of different economies, of strong competitors, the investment climate and international developments”.

But Tucker, who took over from outgoing chief executive Mark Wilson, is confident that AIA can regain its former glory: “The AIA people are incredibly resilient, and incredibly loyal to the brand.”

The insurer's numbers point to its strength. It notched up an operating profit before tax of more than US$1.8 billion for last year and a solvency margin of 300 percent.

With Prudential's buyout bid now on the scrap heap, AIA's next option is a share market listing, which could raise money to help repay the billions that US taxpayers laid out to rescue AIA's American parent.

Tucker is confident a listing will mark a new start for the insurer, which has more than 23 million in-force policies, and about 320,000 agents and 23,500 staff.

Reports say an initial public offering in Hong Kong later this year could raise US$20 billion.

In Singapore, AIA's agent force has slipped below Prudential's, say market players, partly because of an exodus of staff earlier this year. That has prompted AIA to promise large bonuses to retain staff and hefty sign-on bonuses, industry players say.

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