AIA Group has released its financial results for the third quarter of 2022, with value of new business (VONB) growing 7% year on year to US$741 million and annualised new premiums (ANP) up 8% to US$1.27 billion.
AIA’s total weighted premium income grew by 8% year-on-year to US$8.66 billion.
Lee Yuan Siong, AIA’s group chief executive and president, said that the insurer’s VONB grew across all reportable segments, carried by the company’s momentum from the second quarter going into the third quarter.
“Our proprietary Premier Agency and partnership channels both generated higher VONB compared to the third quarter of 2021, demonstrating the strength of our unrivalled distribution platform across Asia,” Lee said. “In agency, recruitment improved in the third quarter and higher agent productivity supported the year-on-year increase in VONB. Our bancassurance partners delivered another quarter of excellent VONB growth with very strong performances across our leading ASEAN operations.”
As pandemic containment measures eased in Mainland China, AIA China saw improved sales in the third quarter, with 6% VONB growth compared to the third quarter of 2021. This was supported by a rebound in activity in Shanghai, China’s most populous city. AIA China also reported increased recruitment of new agents, as well as increased productivity from both new and existing agents in the third quarter.
AIA Hong Kong delivered increased VONB in the third quarter, supported by a growth in sales to Mainland Chinese visitors through its Macau branch. Both agency and partnership channels were contributors to this growth, especially the exclusive bancassurance partnership with The Bank of East Asia.
AIA said that momentum that returned to its Singapore and Malaysia businesses in the second quarter continued through the third quarter with both businesses again delivering double-digit VONB growth. In each market, both Premier Agency and partnership distribution channels saw increased VONB, supported by ongoing investments in technology. In Singapore, an increase in active agent numbers and a more favourable product mix drove growth, while, in Malaysia, the exclusive partnership with Public Bank Berhad was credited for the increased business.
“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,” Lee said. “Our investments in technology, digital and analytics continue at pace, delivering enhanced customer experience and providing significant benefits to our unrivalled distribution.
“In August, we completed the acquisition of Blue Cross, a specialist health insurer in Hong Kong, and, in September, we announced the acquisition of MediCard, a leading health maintenance organisation in the Philippines. These new additions to AIA will accelerate our new integrated health strategy, supporting our ambition to make healthcare more accessible, more affordable and more effective for our customers.
“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,” Lee said. “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.”
