Oct 31 (Reuters) – Asia-focussed insurer AIA Group Ltd (1299.HK) reported a 1% rise in quarterly new business value on Tuesday as sales recovered from pandemic lows in its main markets of China and Hong Kong.
AIA’s mainland China business posted a 6% rise in value of new business (VONB) during the quarter, on a constant exchange rates basis. Its Hong Kong business also saw VONB growth, AIA said.
The two markets together account for about half of AIA’s new business growth globally.
Prolonged border controls and social distancing measures imposed by mainland China and Hong Kong had hindered the mobility and activities of the agents who drive insurance sales in the region. In early September, however, some parts of China eased COVID lockdowns.
AIA saw “healthy” levels of agent recruitment and increased productivity from new and existing agents during the third quarter, Chief Executive Lee Yuan Siong said in an exchange filing on Tuesday.
In the quarter ended Sept. 30, AIA’s VONB rose to $741 million from $735 million a year earlier. VONB measures expected profits from new premiums and is a key gauge for future growth.
Reporting by Harshita Swaminathan and Selena Li; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles.