(Reuters) -Asia-focused insurer AIA Group on Friday posted a 35% jump in third-quarter value of new business (VONB), boosted by strong demand for its insurance products across operations including key markets of Hong Kong and Mainland China.
The growth, measured by constant exchange rates, marks the insurer’s highest new business value increase in third quarter.
The insurer’s VONB, which gauges expected profits from new premiums and is a key gauge for future growth, rose to $994 million in the three months ended Sept. 30, from $741 million a year ago.
“Rising incomes, low levels of private insurance penetration and limited social welfare coverage continue to drive demand for AIA’s insurance products across our
markets,” CEO Lee Yuan Siong said in a statement.
Mainland China, one of AIA’s largest markets, reported a 20% increase in VONB during the period，with sales jumping 62% via its distribution partners, 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 $3.02 billion, slightly below its full-year 2022 figure of $3.09 billion.
(Reporting by Sameer Manekar in Bengaluru and Selena Li in Hong Kong ; Editing by Shailesh Kuber and Rashmi Aich)