HONG KONG: AIA Group Ltd, the world’s second-largest life insurer by market value, said new business rose 44 percent on a constant exchange rate basis as demand surged in Hong Kong and the Chinese mainland, despite slowing economic growth in the mainland.
New business indicates expected profit from new premiums — a key yardstick for growth at AIA, which listed in Hong Kong in 2010 after a spin-off from bailed-out US insurer AIG.
AIA said in a statement yesterday that the value of new business rose to a record US$578 million in the three months to February 29 from US$425 million a year earlier. Growth was 36 percent once changes in currency rates were factored in.
The mainland and Hong Kong together account for about half of new business growth globally at AIA, founded in Shanghai nearly 100 years ago and the first foreign insurer to be granted a license in China.
AIA’s Group CEO Mark Tucker said the company was confident of its future prospects and it was focusing on raising the reach of agency and distribution channels and expanding and improving its range of products.
In a research note, Morgan Stanley said AIA’s better-than-expected new business growth in tough market conditions would help pave the way for the company to achieve “another successful” year of results.
“The Asia-Pacific region remains the most attractive and exciting market in the world for life insurance,” AIA said.
