AIA sees growth in China business as restrictions lifted

HONG KONG Insurer AIA Group LtdAIA Group Ltd has seen growth for its China business so far this year and is optimistic about a recovery in new sales from a disappointing 2022 now that harsh COVID 19 restrictions have been scrapped.

The value of new business VONB, which measures expected profits from new premiums and is a key gauge for future growth, fell 8 per cent to $3.09 billion last year.

In mainland China - its largest market accounting for about 30 per cent of new sales - VONB plunged 17.3 per cent.

In the second half of 2022, new business momentum for the Asia-focused insurer improved as the impact of an initial Omicron wave subsided and normal activities resumed.

Chief Financial Officer Garth Jones told the Associated Press that growth is coming back and the portfolio is seeing growth coming back.

Jones noted that the Chinese business of AIA had triple digit growth for a portion of the second half of 2022 before a wave of Omicron infections in November.

Growth at its Macau branch as well as its agency and partnership channels helped VONB's Hong Kong business increase by 4 per cent last year.

The insurer, which has a market value of around $127 billion, has traditionally benefitted from mainland Chinese visitors who come into Hong Kong in search of better insurance policies.

In early February, China and Hong Kong removed COVID curbs for mainland travellers, and visitor numbers are expected to pick up quickly.

We see very encouraging signs in the first couple of months of this year and strong momentum continuing in Hong Kong that give us optimism for the future, Jones said.