New business shows signs of comeback for AIA

AIA (1299) says the value of third-quarter new business was up 22 percent compared to a quarter ago but fell 28 percent year-on-year to US$706 million (HK$5.51 billion).

The annualized new premium was US$1.36 billion, up 21 percent quarter-on-quarter, based on a fixed currency.

The value of the new business margin was 51.6 percent, up 0.2 percentage points compared with a quarter ago but down 15.4 percentage points year-on-year.

Total weighted premium income was up 7 percent from the third quarter of 2019 and up 6 percent from the second quarter to US$8.8 billion.

Across their agency businesses, the company has continued to build future capacity with new recruits up more than 20 percent compared to the third quarter of 2019.

Business in Hong Kong delivered modest quarter-on-quarter growth in value of new business, driven by increased sales to the domestic customer segment. Sales to mainland Chinese visitors remained close to zero in the third quarter, given the mandatory quarantine requirement.

The group said there has been an improvement in the adverse lapse experience in the first half of the year in Thailand and Malaysia. Positive medical claims in the first half also normalized in the third quarter.

Shares of AIA rose 2.24 percent to HK$82.3 yesterday.

Lee Yuan-siong, AIA's group chief executive and president, said: "The group has delivered strong sequential growth in the third quarter, building on the strong momentum as restrictions eased."

The company's mainland China business completed the conversion to a wholly owned life insurance subsidiary on October 1. AIA China was recently granted approval by the China Banking and Insurance Regulatory Commission to begin preparations to establish a new branch in Sichuan. It will be its first branch in Western China.

The group also announced a long-term strategic partnership with Practo, India's leading digital health-care platform with a network of 70,000 top-tier hospitals and clinics.

Tata AIA Life has extended its strategic partnership with IndusInd Bank Limited for a further 10 years.