AIA Group’s new business value grew 28% in the first quarter

Its China operations had the biggest share in the overall VONB.

On constant exchange rates (CER), AIA Group’s value of new business (VONB) grew 28% to $1.05m in the first quarter of 2023.

“We achieved double-digit VONB growth from our operations in Mainland China, Hong Kong, ASEAN and India,” said the insurer.

Its China operations remain to be the largest contributor to the overall VONB of the group, said AIA. Significantly, AIA China received regulatory approval to start a business in Henan.

Annualised new premiums (ANP) of the group also jumped 34% to $2m in the first three months of the year.

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However, VONB margin decreased to 52.3% due to the change in product mix towards long-term savings products in mainland China and Hong Kong. This was also slightly counterbalanced by modifications to economic assumptions and decreased acquisition cost overruns in contrast to the initial quarter of 2022.

The margin, calculated based on the present value of new business premiums (PVNBP), exhibited stability at 10%, whereas the total weighted premium income (TWPI) surged by 7% to reach $10.2b, as compared to the first quarter of 2022.

“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.” the insurer said.