Insurer AIA's 2023 new business value soars on strong Hong Kong sales
Reuters
Published Mar 13, 2024 06:57PM ET
(Reuters) - AIA Group (OTC:AAGIY) reported a 33% jump in its annual value of new business (VONB) on Thursday as the company benefited from strong demand for its insurance products in Hong Kong.
The Asia-focused insurer benefited from a surge in customers from mainland China who travelled to buy offshore products as they look to capitalise on potentially lower premiums and higher returns in Hong Kong.
A comparative shortage of investment channels amid China's weakening yuan has removed the shine off Chinese insurance with an increasing number of mainlanders becoming more and more aware of the advantages involving offshore insurance policies.
Mainland Chinese tourists spent HK$59 billion ($7.54 billion) on insurance policies in Hong Kong last year, according to data from the territory's Insurance Authority.
On a constant exchange rate basis, AIA's VONB, which gauges expected profits from new premiums and is a key barometer for future growth, rose to $4.03 billion for the year ended Dec. 31, from $3.09 billion a year earlier.
Hong Kong, one of AIA's largest contributor in terms of profits for 2023, reported an 82% annual increase in VONB.
VONB in partnership distribution channel in Hong Kong more than tripled compared with the prior year, the company said.
The company's full-year operating profit after tax rose 2% to $6.21 billion.
AIA declared a final dividend of HK$1.19 per share, compared to a final divided of HK$1.13 declared last year.
($1 = 7.8232 Hong Kong dollars)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.