AIA increases value of new business by 7% in Q3

Written by Michael Griffiths

01/11/2022

AIA has announced that its value of new business (VONB) increased by 7% in the third quarter to $741m.

The insurer confirmed it has recorded VONB growth in all reportable segments in Q3.

AIA’s proprietary premier agency and partnership channels both generated higher VONB compared to Q3 2021, which the insurer said demonstrates the strength of its distribution platform across Asia. It also stated that its bancassurance partners had delivered a quarter of “excellent” VONB growth.

Elsewhere in AIA’s results, annualised new premiums (ANP) also increased by 8% to $1.27bn in Q3, while the group’s VONB margin stood at 58.1%. Total weighted premium income was up by 2% to $8.66bn.

“We remain focused on executing our clear strategic priorities to ensure that AIA is best positioned to leverage the structural growth opportunities available to us,” said AIA group chief executive and president, Lee Yuan Siong. “Our investments in technology, digital and analytics continue at pace, delivering enhanced customer experience and providing significant benefits to our unrivalled distribution.

“The group’s financial position remains very strong despite capital market volatility and we continue to return excess capital to shareholders through our ongoing share buy-back programme. Our capital management framework ensures that we can withstand capital market stresses and retain sufficient resources and financial flexibility to invest in organic new business growth and value-enhancing inorganic opportunities.

“I am confident that our growth strategy will continue to deliver sustainable value for all of our stakeholders as we help millions more people live healthier, longer, better lives.”

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