AIA Group Limited announces new business indicators for the first quarter ended March 31, 2022 with value of new business (VONB) of US$853 million, down 18%.
Annualized new premiums (ANP) reduced by 7 per cent to US$1,567 million. Total weighted premium income (TWPI) was up 5% to US$9,948 million. Lee Yuan Siong, AIA’s Group Chief Executive and President, said: “While the Omicron variant of COVID-19 caused a temporary disruption to new business sales in the first quarter of 2022 as we previously highlighted, our businesses are regaining momentum where infections have passed their peak and disruptions have begun to subside.”
“Our significant investments in technology, digital and analytics are enabling our businesses to successfully adapt to the complex and fluid operating environment, helping to progressively reduce the impact on our sales from successive waves of the pandemic. Supported by our digital tools and remote capabilities, our businesses outside Mainland China and Hong Kong delivered VONB in the first quarter of 2022 that was 50 per cent above the level achieved in the first wave of the pandemic during the second quarter of 2020.
“I am confident that our consistent focus on the execution of our strategy will deliver long-term growth and sustainable value for all of our stakeholders as we help millions more people live healthier, longer, better lives. In markets where infections have fallen substantially from their peak, we have seen sales activity rebound.”
AIA China remained the largest contributor to the Group in the first quarter of 2022.
While the high volume of COVID-19 infections drove widespread social distancing and economic disruption during the first quarter of 2022, our reportable segments outside Mainland China delivered a resilient performance in aggregate with an 8% per cent decline in VONB compared with the excellent result achieved in the first quarter of 2021.”
AIA Hong Kong reported an increase in VONB compared to the first quarter of 2021, supported by growth from both our Premier Agency and partnership channels. The long-term prospects for AIA’s businesses are exceptional given our substantial competitive advantages, geographical diversification and the powerful structural growth drivers for life and health insurance in Asia.
“Rising incomes, low levels of private insurance penetration and limited social welfare coverage continue to drive demand for AIA’s insurance products across our markets.”
Global economic growth continued in the first quarter of 2022 although supply-side disruptions, labour shortages and high energy prices are fuelling rising consumer inflation and interest rates. The current geopolitical tensions are also creating volatility in global capital markets.