Insurer AIA’s new business value rises as COVID restrictions in China ease

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Oct 31 (Reuters) – Asia-focused insurer AIA Group Ltd (1299.HK) on Tuesday reported a 1% increase in the quarterly value of new business as sales recovered from pandemic lows in its main markets of China and Hong Kong.

AIA’s Mainland China business saw a 6% increase in value of new business (VONB) in the quarter, at constant currencies. Its Hong Kong business has also seen growth from VONB, AIA said.

The two markets together account for approximately half of AIA’s new business growth globally.

Prolonged border controls and social distancing measures imposed by mainland China and Hong Kong have hampered the mobility and operations of agents who lead insurance sales in the region. In early September, however, 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 grew to $741 million from $735 million a year earlier. VONB measures expected earnings from new premiums and is a key indicator of future growth.

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

Our standards: The Thomson Reuters Trust Principles.

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