According to AIA Group each of the geographic market segments generated double-digit growth in the value of new business in the past quarter. AIA experienced positive growth in Hong Kong, China, the Philippines and Indonesia.
AIA Australia also performed well in the local group insurance market, with 24.3 per cent of in-force business. AIA Australia’s retail in-force business in the past 12 months has grown at a rate of 23 per cent - double the growth of the broader retail market, which increased by 10 per cent.
The entity also reported a 21 per cent rise in annualised new premium to US$839 million and a value of new business margin of 44.7 per cent, an increase of 2.1 per cent from the third quarter of 2012. According to AIA Group, this margin expansion was achieved by improving the product mix.
AIA Australia chief executive Peter Crewe said the team at AIA Australia had played a large part in the overall results of the AIA Group.
“We have consistently had double-digit growth over the last four years, and that all stems from our ability to provide exceptional value to our customers and partners,” said Mr Crewe.
AIA’s proprietary agency channel was a primary driver of overall value of new business growth, accounting for 71 per cent of all new growth in the third quarter. AIA continued to successfully deliver its Premier strategy, with growth in the number of active agents and growth in agent productivity in the third quarter. Partnership distribution also reported solid growth as it benefitted from the continued restructuring of the direct marketing channel in Korea.
AIA said debate over US monetary policy caused some capital market volatility in the third quarter and challenged those countries currently running account deficits. The company felt that Asian central banks responded appropriately, however.
AIA remains confident in its outlook of substantial growth for life insurance in Asia as low insurance penetration, rapid urbanisation and the increasing household incomes across the region will provide AIA with significant growth opportunities.
