ASIA-FOCUSED insurer AIA Group reported a 33 per cent rise in FY2023 value of new business (VONB), driven by strong sales growth across its key markets.
The insurer’s VONB, which measures expected profits from new premiums and is a key gauge for future growth, rose to US$4.0 billion for the full-year, from US$3.1 billion in FY2022, based on its financials released on Thursday (Mar 14).
Annualised new premiums for FY2023 increased by 45 per cent to a record high of US$7.7 billion.
AIA said that its distribution platform delivered VONB growth of 23 per cent. A recovering partnership distribution also generated a 58 per cent increase in VONB compared with year-ago.
The largest contributor to AIA’s new business results is its Hong Kong operation for the year. Its VONB grew 82 per cent to US$1.4 billion. “AIA Hong Kong’s products and services have broad appeal to both domestic and mainland Chinese visitor customers,” said the group.
VONB from mainland China grew by 28 per cent for February to December in 2023 compared with the same period in 2022, following the removal of pandemic restrictions at the beginning of the year. Full-year VONB in the AIA’s main market stood at US$1.0 billion, up 20 per cent on the year.
AIA Singapore delivered a 10 per cent VONB growth with a shift in product mix towards protection business.
Its Asean markets overall stood as a key growth driver for the group, contributing one third of the VONB. AIA said that these markets, excluding Vietnam, delivered 14 per cent VONB growth, with double-digit growth from both agency and partnership channels.
AIA, which was founded in Shanghai more than a century ago, declared a final dividend of 119.07 Hong Kong cents per share, bringing its total dividend to 161.36 Hong Kong cents per share, up 5 per cent on the year.
Lee Yuan Siong, AIA’s group chief executive and president, said the future growth of the insurance business in Asia given the region’s strong demand and major demographic trends.