BENGALURU (REUTERS) – Asia-focused insurer AIA Group posted a 4 per cent jump in its quarterly value of new business (VONB) on Friday (Nov 12), as it continues to recover from the pandemic-led disruption to business in most of its main markets.
The Hong Kong-based insurer’s VONB, which measures expected profits from new premiums and is a key gauge for future growth, rose to US$735 million (S$995.6 million) in the quarter ended Sept 30, from US$706 million a year earlier.
In Asia, insurance firms mainly rely on their army of agents for product sales, which have been dented by pandemic-led lockdowns and social distancing measures, though AIA, like peers, has been trying to sell more products online.
AIA’s VONB from its mainland China business continued to be its biggest contributor, while its Hong Kong business recorded “strong” growth, boosted by domestic customers at a time sales to visitors from mainland China remained soft due to ongoing travel restrictions.
China and Hong Kong together account for about half of the company’s VNOB globally.
AIA, which was founded a little more than a century ago and was the first foreign insurer to be granted a licence in China, warned in an exchange filing of disruption from pandemic-induced restrictions and increased claims in some of its markets, particularly where vaccination levels are low.