AIA's new-business value falls by 33% in 2020

AIA has announced that it generated $2,765m in the value of new business (VONB) last year, 33% lower than in 2019, reflecting operational challenges caused by the COVID-19 pandemic.

Mainland China accounted for 32% of VONB in 2020, while Hong Kong contributed 18%. The other significant markets in Asia for AIA are Thailand (15% share of VONB), Singapore (11%) and Malaysia (7%), according to presentations made by AIA.

In the first two months of 2021, sales momentum returned with VONB up by 15% year-on-year as movement restrictions were eased. AIA’s operating profit after tax (OPAT) increased by 5% to $5,942m in 2020 compared to 2019, leading the company's board to propose a 7.5% increase in the final dividend for 2020 to 100.30 Hong Kong cents (12.92 US cents) per share.

Mr Lee Yuan Siong, AIA’s group chief executive and president, said in a statement, “AIA has delivered another very strong performance despite unprecedented macroeconomic conditions and the operational challenges caused by the COVID-19 pandemic. While VONB was affected by social distancing measures, we achieved growth in all of our other key financial metrics.”

He added, “The Group’s financial position remains very strong and we increased the final dividend.” He said, “Following the restrictions on movement and in-person meetings, we accelerated the development and adoption of online and remote capabilities across our markets. We introduced remote sales completion, moved recruitment, onboarding and training online for agents, and launched simpler streamlined services and claim processes for customers. These new capabilities have enabled our businesses to continue operating smoothly in rapidly changing conditions.

“While 2020 was an extraordinary and challenging year, it has made me more optimistic about the future for AIA. Now more than ever, Asian consumers are acutely aware of the need for financial security and the need to protect the well-being of their families, making our purpose and propositions even more relevant.”

AIA Group comprises the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets – wholly-owned branches and subsidiaries in mainland China, Hong Kong, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, the Philippines, South Korea, Sri Lanka, Taiwan, Vietnam, Brunei, Macau and New Zealand, and a 49% joint venture in India.

Source: Asia Insurance Review

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