AIA new business jumps 23pc in Q1

AIA (1299) saw its new business value jump by 23 percent year-on-year on an actual exchange rates basis for the first quarter to US$1.05 billion (HK$8.19 billion), beating market projections.

On constant exchange rates, the growth was 28 percent, the insurer said.

Operations in China, Hong Kong, Asean and India all reported double-digit NBV growth, with China remaining the largest contributor, it said, adding that sales had improved as the disruptive effects of the pandemic eased.

AIA Hong Kong's upturn was supported by double-digit growth from local customers as well as strong demand for long-term savings products, including from mainland visitors following the full resumption of normal travel in February.

The NBV margin for the quarter, however, slid by 2.1 percentage points from 12 months ago to 52.3 percent, driven by the product shift towards those that offer long-term savings in China and Hong Kong. On the other hand, annualized new premiums soared 28 percent on actual rates - or 34 percent on fixed rates - to nearly US$2 billion.

Looking forward, the insurer said rising incomes, low levels of private insurance penetration and limited social welfare coverage in Asia will continue to drive demand for its insurance products across the markets.