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AIA Sees New Business Value Dip 5% Amid China Headwinds
30 Oct
Summary
- AIA's new business value decreased by 5% in the third quarter.
- Mainland China saw a 33% drop in new business value.
- Hong Kong sales also experienced a 3% decline in new business value.
Hong Kong-based insurer AIA Group experienced a 5% decline in its third-quarter value of new business (VONB), reporting $1.42 billion on a constant exchange rate basis compared to $1.48 billion a year prior. This moderation reflects a return to more typical growth rates after an "exceptionally high" period in the previous year.
Mainland China, a key market for AIA, saw its VONB plummet by 33% during the three months ending September 30. This significant decrease was attributed to a high base from the prior year, when purchases were accelerated ahead of industry-wide repricing, and a double-digit fall in the bancassurance segment's new business value.
Further impacting the results, AIA Hong Kong's new business value dipped by 3%, influenced by strong sales in the same period last year. The company noted that some mainland Chinese visitors adopted a wait-and-see stance, influenced by extensive media coverage of offshore investments and a recent 20% tax imposed by Chinese authorities on returns from Hong Kong insurance policies held by mainland residents.
