AIA Group, Asia’s largest insurer, posted a 37 per cent increase in its value of new business for the first half of 2023, driven by a robust rebound in sales across its key markets of Mainland China and Hong Kong.
The value of new business (VONB), which measures the expected profits from new premiums and is a key indicator of future growth, rose to $2.03 billion in the six months ended June 30, compared with $1.48 billion a year earlier.
The insurer, which operates in 18 markets across Asia-Pacific, said it benefited from the easing of pandemic-related restrictions and the recovery of economic activity in the region.
AIA Group’s chief executive and president, Lee Yuan Siong, said the strong performance reflected the resilience and adaptability of the company’s agency force and its diversified distribution channels.
“We have continued to invest in our long-term strategic priorities, including enhancing our agency capabilities, expanding our partnership opportunities, strengthening our digital platforms and broadening our product suite,” he said in a statement.
Mainland China and Hong Kong lead the growth
Mainland China, AIA Group’s largest market, recorded a 14 per cent rise in VONB during the period to $601 million, helped by the lifting of pandemic-related restrictions at the start of the year.
The insurer said it saw strong demand for its protection and health products, as well as its savings and retirement solutions, in Mainland China.
It also said it continued to expand its agency force and its geographical footprint in the country, with plans to open new branches in Shandong and Henan provinces later this year.
Hong Kong, AIA Group’s second-biggest market, saw a 111 per cent surge in VONB to $681 million, boosted by domestic customers as well as travellers from Mainland China.
The insurer said it benefited from the gradual resumption of cross-border travel under the Return2HK scheme, which allows Hong Kong residents to return from Mainland China without quarantine.
It also said it launched new products and services to cater to the evolving needs of customers in Hong Kong, such as a digital health platform and a wellness programme.
Other markets show mixed results
AIA Group’s other markets showed mixed results, with some recovering faster than others from the impact of the pandemic.
Singapore posted a 9 per cent increase in VONB to $147 million, while Malaysia recorded a 10 per cent decline to $72 million.
Thailand saw a 4 per cent drop in VONB to $153 million, while Indonesia registered a 16 per cent rise to $67 million.
The Philippines reported a 28 per cent fall in VONB to $23 million, while Vietnam recorded a 25 per cent increase to $35 million.
Australia and New Zealand saw a 12 per cent decline in VONB to $49 million, while South Korea posted a 13 per cent rise to $41 million.
Other markets, which include India, Cambodia, Myanmar and Sri Lanka, recorded a 19 per cent increase in VONB to $64 million.
AIA Group declares higher interim dividend
AIA Group declared an interim dividend of 42.29 Hong Kong cents per share, compared with 40.28 Hong Kong cents per share a year ago.
The insurer said it maintained a strong capital position and a prudent approach to risk management amid the uncertain environment.
It also said it remained confident in its long-term growth prospects, given the increasing demand for insurance and wealth management solutions in Asia-Pacific.
“We are well-positioned to capture the significant opportunities presented by the structural drivers of growth across our markets,” Mr Lee said.
