AIA Group reports 22% growth in new biz in 3Q to $ 706 m

AIA Group Ltd. has announced a 22% growth in new business to $ 706 million in the third quarter in comparison to a year earlier.

Annualised new premiums (ANP) grew by 21% to $1,359 million whilst AIA reported a Value of new business (VONB) margin of 51.6%, consistent with the second quarter of 2020. Total weighted premium income (TWPI) was up 7% from the third quarter of 2019

AIA Group Chief Executive and President Lee Yuan Siong said: “The Group has delivered strong sequential growth in the third quarter with VONB up 22% compared to the second quarter, building on the strong momentum as restrictions eased. TWPI grew 7% year-on-year and our in-force business continues to demonstrate resilience with strong persistency.

“The COVID-19 pandemic has been well controlled in many of the markets where AIA operates, following the easing of containment measures. While remote completion continues to account for a significant proportion of new business in some markets, we have generally seen an increase in the proportion of our sales sourced from face-to-face meetings.

“The Group has delivered strong sequential growth in the third quarter with VONB up 22% compared to the second quarter, building on the strong momentum as restrictions eased. TWPI grew 7% year-on-year and our in-force business continues to demonstrate resilience with strong persistency.

“The COVID-19 pandemic has been well controlled in many of the markets where AIA operates, following the easing of containment measures. While remote completion continues to account for a significant proportion of new business in some markets, we have generally seen an increase in the proportion of our sales sourced from face-to-face meetings.

“In the third quarter of 2020, the Group delivered strong momentum in new business sales. VONB increased by 22% compared to the second quarter of 2020, driven by sequential quarter-on-quarter growth from almost all of our markets. VONB margin was consistent with the second quarter as the reduction from economic assumption changes and geographical mix shifts was offset by reduced acquisition expense overruns as quarterly sales momentum improved. Across our agency businesses, we have continued to build future capacity with new recruits up more than 20% compared to the third quarter of 2019.

“In the third quarter of 2020, the Group delivered strong momentum in new business sales. VONB increased by 22% compared to the second quarter of 2020, driven by sequential quarter-on-quarter growth from almost all of our markets. VONB margin was consistent with the second quarter as the reduction from economic assumption changes and geographical mix shifts was offset by reduced acquisition expense overruns as quarterly sales momentum improved. Across our agency businesses, we have continued to build future capacity with new recruits up more than 20% compared to the third quarter of 2019.

“After the sharp contraction in the global economy in the first half of 2020, some countries have returned to growth in the third quarter, including Mainland China. Economic recovery has diverged significantly at the country level, driven by the effectiveness of pandemic containment measures and government policies as well as the importance and competitiveness of manufacturing industries. 

“The medium-term outlook remains highly uncertain given COVID-19 infections have been rising in many countries and political and trade tensions remain elevated. However, the demand for AIA’s products and services will continue to grow over the long term, powered by the structural drivers of rising wealth, low insurance penetration levels and limited social welfare across Asia. AIA is uniquely positioned through our powerful distribution, differentiated propositions, leading brand and financial strength to capture the enormous long-term opportunities in the Asian life and health insurance market.”