Insurer AIA new business value rises 34% in Q3 on strong China, Hong Kong sales

Asia-focused insurer AIA Group on Friday (Nov 3) posted a 34 per cent rise in the value of new business (VONB) for the third quarter, boosted by strong demand for its insurance products across operations including key markets like Hong Kong and Mainland China.

The insurer’s VONB, which measures expected profits from new premiums and is a key gauge for future growth, rose to $994 million in the three months ended Sep 30, from US$741 million a year ago.

Mainland China, one of AIA’s largest markets, logged a 20 per cent growth in VONB during the period as the insurer continued to benefit from the lifting of pandemic-related restrictions.

AIA, which heavily relies on its agents for sales of insurance in the region, said agent recruitment remained strong with “very strong double-digit year-on-year growth, supporting growth in total number of agents over the third quarter”.

In Hong Kong, while domestic business slightly fell from last year’s high base, sales to Mainland Chinese visitors continued to grow strong, which brought in almost half of VONB during the reported quarter, in line with last year.

AIA’s nine-month VONB stands at US$3.02 billion, slightly below its full-year 2022 figure of US$3.09 billion.