Sunday, May 16, 2021

AIA delivers strong new business growth, value up 19% in1Q

Lee Yuan Siong

HONG KONG, 14 May 2021 – AIA Group Limited announcing the key new business indicators for the first quarter ended 31 March 2021 said Value of new business (VONB) was US$1,052 million which is an increase of 19%.

Annualised new premiums (ANP) grew 10% to US$1,703 million while VONB margin was up 4.5 pps to 61.6 per cent. Total weighted premium income (TWPI) up 6% to US$9,663 million.

Lee Yuan Siong, AIA’s Group Chief Executive and President, said: “AIA has exceeded pre-pandemic levels of new business for each of our segments other than Hong Kong, where travel restrictions continue to affect sales to Mainland Chinese visitors.”

“Outside Hong Kong, VONB for all segments in the first quarter of 2021 was higher than the first quarter of 2019. Compared with the first quarter of 2020, we have delivered 19 per cent overall VONB growth for the Group, including excellent growth in Mainland China, Thailand and Malaysia and double-digit growth from our domestic customer segment in Hong Kong. “

The momentum that returned to our businesses, as movement restrictions eased in 2020, has continued into 2021.

“The Group’s financial position has remained very strong through the recent exceptional volatility, giving peace of mind to our millions of customers. The pandemic has increased awareness of health and wellness and we have seen very strong growth in protection VONB compared to the first quarter of 2020 as we help more people across Asia live Healthier, Longer and Better Lives.”

AIA’s wholly-owned operation in Mainland China remained the largest contributor to the Group’s VONB and achieved excellent growth compared with the first quarter of 2020. VONB margin was consistent with the prior year despite the deduction of 5 per cent withholding tax since July 2020.

“We are making excellent progress with our strategic priorities, further extending our competitive advantages as we harness the opportunities available to AIA across Asia.”

The long-term prospects for AIA’s businesses are exceptional given our substantial competitive advantages and the powerful structural growth drivers for life and health insurance in Asia. 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.

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