AIA third-quarter new business value falls 5% on Hong Kong, China slowdown
AIA Group reported a 5 per cent drop in new business value to US$1.415 billion in the third quarter, driven by declines in Hong Kong and mainland China, though a September recovery and growth in other segments partly offset the fall.
AIA Group reported a 5 per cent decline in new business value (NBV) to US$1.415 billion in the third quarter, calculated on a constant exchange rate basis, reflecting weaker performance in Hong Kong and mainland China, partly offset by an 18 per cent NBV increase in other reporting segments.
Hong Kong operations saw NBV fall 3 per cent during the quarter, but combined August and September figures showed 20 per cent growth, with all customer groups and distribution channels recording increases. The company said the local customer segment continued to achieve very strong NBV growth, while mainland Chinese visitor customers adopted a wait-and-see approach amid widespread reports about outbound investment. AIA’s China business suffered a 33 per cent NBV decline in the quarter.
Overall NBV rebounded strongly in September, rising more than 25 per cent year on year, the group said. The overall NBV margin improved by 5.3 percentage points to 63.5 per cent on a constant exchange rate basis. Annualised new premiums fell 13 per cent to US$2.237 billion, mainly due to the impact of the China business. Total weighted premium income rose 7 per cent to US$12.892 billion.
For the first three quarters, NBV increased 5 per cent to US$4.627 billion on a constant exchange rate basis, the company said.
Chief executive and president Lee Yuan-sheng said that although Hong Kong and mainland China had recorded extremely high sales in the same period last year, affecting last quarter’s growth, a strong rebound was seen in September, with momentum continuing into the fourth quarter. He expressed confidence in the outlook and reiterated that the company expects to exceed its target of a 9 per cent to 11 per cent compound annual growth rate in after-tax operating earnings per share from 2023 to 2026.