Advertisements

AIA Achieves Strong Growth in New Business Value

by Celia

AIA Group has announced impressive growth in new business value (NBV), with a notable 27% increase for the first quarter, driven by robust performance in Hong Kong and mainland China.

According to a report by the South China Morning Post (SCMP), AIA’s NBV, a crucial measure of future profitability from newly acquired policies, surged to US$1.3 billion, up from US$1.05 billion during the same period last year. Annualised new premiums also saw a significant uptick, rising by 23% to reach US$2.4 billion.

Advertisements

After adjusting for exchange-rate fluctuations, the NBV climbed by 31%, while annualised new premiums increased by 26%. Hong Kong led this growth with a remarkable 43% surge in NBV, while mainland China experienced a substantial 38% rise.

Advertisements

Expansion of Share Buy-back Program

In addition to the positive financial results, AIA Group announced an expansion of its share buy-back program by an additional US$2 billion, augmenting the existing US$10 billion initiative.

AIA CEO Lee Yuan Siong highlighted that this buy-back reflects the company’s strong financial position and confidence in future performance. The company has also set a target to distribute 75% of its net free surplus through dividends and buy-backs, beginning with this year’s annual results.

Performance in Hong Kong and Mainland China

AIA operates across 18 markets in the Asia-Pacific region, with Hong Kong and mainland China serving as its primary contributors to new business and policy sales.

Advertisements

The company benefited from the recovery in mainland Chinese visitor arrivals to Hong Kong, which reached 71% of 2018 levels following disruptions caused by the COVID-19 pandemic.

In mainland China, insurance is increasingly viewed as a wealth management tool, further propelling AIA’s growth trajectory. The company’s success with tax-deferred pension products has continued, with analysts projecting an 18% increase in Thailand’s new business value.

AIA reported that over 60% of its Hong Kong unit’s NBV generated from mainland Chinese visitors in the first quarter was attributed to its own agents. Additionally, the Hong Kong unit excelled by topping 10 market share segments in the Provisional Statistics on Hong Kong Long-Term Insurance Business for 2023.

Advertisements

You may also like

blank

Bedgut is a comprehensive insurance portal. The main columns include commercial insurance, auto insurance, health insurance, home insurance, travel insurance, other insurance, insurance knowledge, insurance news, etc.

[Contact us: [email protected]]

© 2023 Copyright  bedgut.com