AIA’s Value of New Business increased by 35%

AIA’s Value of New Business increased by 35%

Blog Article

AIA Group on Friday posted a 35% jump in value of new business (VONB) in the third quarter, driven by strong demand for insurance products across its operations including key markets in Hong Kong and mainland China. The growth, measured by a constant exchange rate, marked the highest increase in new business value for the insurer in the third quarter.

Insurance company VONB, which measures profit expectations from new premiums and is a key measure of future growth, rose to$994 million in the three months ended Sept.30, from$741 million a year ago.

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“Rising revenues, low private insurance penetration rates, and limited social welfare coverage continue to drive demand for AIA insurance products across our markets,” said AIA CEO Lee Yuan Siong, quoted from the zawya page, Monday, November 6, 2023.

Mainland China was one of AIA’s biggest markets, reporting a 20% increase in VONB during the period, with sales jumping 62% through its distribution partners, as the insurer continued to benefit from the lifting of pandemic-related restrictions.

AIA, which relies heavily on its agents for insurance sales in the region, said agent recruitment remained strong, with very strong year-on-year (yoy) double-digit growth, supporting growth in agent numbers during the third quarter.

In Hong Kong, although domestic business was down slightly compared to last year, sales to mainland visitors continued to grow strongly, generating nearly half of VONB’s revenue in the reported quarter, in line with last year. AIA’s nine-month VONB reached US$3.02 billion, slightly below the full-year figure in 2022 of US$3.09 billion.