AIA Names Former China Pacific Insurance Exec as New CFO

AIA Group Ltd. appointed Garth Jones as executive vice president and group chief financial officer to succeed Marc de Cure, who resigned in March to return to Australia for family-related reasons.

The new appointment will be in effect from April 18, subject to regulatory approvals.

Jones joins AIA from China Pacific Insurance (Group), where he was executive vice president of CPIC Life, said Hong Kong-listed AIA, the Asian life operations of American International Group Inc. He first became an executive of China Pacific in 2009 after gaining the regulatory approval to be deputy general manager of CPIC Life.

Prior to joining the Shanghai-based life insurer, Jones held several senior management positions at U.K.-based Prudential plc for 12 years, including CFO of the Asian life insurance operations, according to AIA. He was also managing director of insurance at Prudential Corporation Asia.

Jones' China market experience, including familiarity with the local tax system, new accounting system and regulations, are some of the reasons he was chosen to be CFO, which will help AIA's expansion in China, said Hong Kong-based KGI Securities equity analyst Pandora Leung.

She noted the management change does not have a big impact on the company's business development, as AIA's "profit drivers and business strategies" remain the same.

The more than 20 years of experience that Jones has in the Asian life insurance industry will prove "very valuable" to AIA, said Mark Tucker, group chief executive and president of AIA, in a statement.

"I am confident that Garth will enhance our ability to execute on our business plans to drive sustained profitable growth for our shareholders," noted Tucker.

Tucker said in February that the group will focus on organic growth in Asia, supported by agency force expansion, along with China market development in 2011. AIA reported net profit growth of 54% to US$2.7 billion for the fiscal year ended Nov. 30, 2010 (BestWire, Feb. 25, 2011).

AIA had said that de Cure would remain with the group until June 30 to ensure a smooth transition. He will then become a consultant working with AIA Australia (BestWire, March 25, 2011).

Following Prudential plc's failure to acquire AIA for US$35.5 billion in June 2010 and the listing of AIA in Hong Kong last October, there was a series of management exchange between the two insurers in the past 10 months.

The changes included Tucker, former CEO of Prudential plc, being named executive chairman and CEO of AIA last July. He then led AIA through its public listing in Hong Kong (BestWire, July 19, 2010). Shu Khoo, former human resources head of the Asia unit of the British insurer, also joined AIA to lead human resource strategies of the group's 15 life insurance markets (BestWire, Jan. 4, 2011).

Leung could not say whether the management moves will bring more synergies in human resources, networks and customer base to AIA, of it if will enjoy cost-effectiveness in the short run.

"For the prospects of AIA, I believe the cost of its agency force expansion may increase its financial pressure in the short term, like the first half of 2011," said Leung. "But its target of expanding its China market share remains a positive factor."

AIA said it has more than 260,000 agents and 21,000 employees across the Asia/Pacific region, with more than 23 million individual policies and 10 million participating members of group policies.

(By Rebecca Ng, Hong Kong news editor: [email protected])