Insurer AIA’s new business value rises as China’s Covid curbs efficiency

Oct 31 (Reuters) – Asia-focused insurer AIA Group Ltd ( 1299.HK ) posted a 1 percent rise in new business value in the quarter as it recovered from lower sales due to the pandemic in its main markets of China and Hong Kong.

IIA’s mainland China business reported a 6% increase in new business (VONB) in the quarter, at constant exchange rates. The Hong Kong business has also seen growth in VONB, AIA said.

Together, the two markets account for nearly half of AIA’s new business growth globally.

Long-term border controls and social distancing measures imposed by mainland China and Hong Kong have restricted the movement and movement of agents promoting insurance sales in the region. In early September, however, some parts of China eased Covid lockdowns.

AIA reported “healthy” agent recruitment levels and increased productivity from new and existing agents in the third quarter, CEO Lee Yuan Siong said in an exchange filing on Tuesday.

In the quarter ended Sept. 30, AIA VONB rose to $741 million from $735 million a year earlier. VONB measures expected profits from new premiums and is a key metric for future growth.

Reporting by Harshita Swaminathan and Selena Li; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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