Asia-focused insurer AIA Group reported a 13 percent jump in first-quarter value of new business on Thursday while shrugging off concerns of volatility in global capital markets amid current geopolitical tensions.
AIA's value of new business (VONB), which gauges expected profits from new premiums and is a key barometer for future growth, came in at $1.76 billion on a constant exchange rate basis for the three months ended March 31, compared with $1.50 billion a year earlier.
The firm's core business in the Hong Kong Special Administrative Region posted a 21 percent rise in VONB, driven by strong demand from local customers and Chinese mainland visitors seeking offshore insurance products with competitive premiums and potentially higher returns.
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The segment on the mainland, AIA's second-largest market by sales, posted a 26 percent rise in VONB, driven by its in-house Premier Agency sales force and selective bancassurance partnerships, where banks sell the insurer's products to customers.
The mainland and the HKSAR together account for about half of new business growth globally at AIA. Besides these regions, AIA's 18 markets in Asia include Thailand, Singapore and South Korea.
"Powerful structural tailwinds in the (Asia) region, such as favourable demographics, rising incomes, low levels of private insurance penetration and limited social welfare coverage continue to create substantial demand for our insurance products," the company said in a statement.
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On Wednesday, peer Prudential reported a nearly 10 percent rise in quarterly new business profit, while warning that energy-driven inflation poses risks to its smaller South Asian businesses and could dampen consumer sentiment.
