Insurer AIA posts rise in new business value as China reopens post COVID By Reuters

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<span>© Reuters. FILE PHOTO-AIA Group logo is pictured on a smartphone in front of an electronic display showing the same logo in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</span><br />
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<p>By Rishav Chatterjee</p>
<p>(Reuters) -Asia-focused insurer AIA Group (OTC:) Ltd on Thursday reported a 37% rise in the value of its new business in the first-half, beating estimates, as sales rebounded in its key markets mainland China and Hong Kong after the lifting of pandemic restrictions. </p>
<p>The insurer’s value of new business (VONB), which measures expected profits from new premiums and is a key gauge for future growth, rose to $2.03 billion in the six months ended June 30, compared with $1.54 billion a year earlier. </p>
<p>VONB at Hong Kong, its biggest market, rose around 111% to $681 million, boosted by domestic customers as well as travellers from mainland China.</p>
<p>AIA said its value of new business in markets other than China and Hong Kong also jumped, reflecting strong earnings growth in Australia, New Zealand, India, Indonesia and the Philippines. </p>
<p>“Our new business performance in the first half of 2023 was broad-based, reflecting AIA’s substantial competitive advantages in capturing the significant growth opportunities in Asia,” the company said.</p>
<p>Analysts at Daiwa Capital Markets said the increase was above consensus estimates. </p>
<p>Shares of the insurer rose 5.1% to 73.5 Hong Kong dollars ($9.37) as of 0129 GMT</p>
<p>Mainland China, AIA’s second largest market, recorded a 14% rise in value of new business (VONB) during the period to $601 million, helped by the lifting of pandemic-related restrictions at the start of the year. </p>
<p>AIA, which was founded in Shanghai more than a century ago, declared an interim dividend of 42.29 Hong Kong cents, compared to 40.28 Hong Kong cents a year ago. </p>
<p>The company’s earnings were also aided by strong performance of Tata AIA Life, an Indian joint venture between AIA Group and Tata Group. </p>
<p>($1 = 7.8403 Hong Kong dollars)</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/insurer-aia-posts-37-rise-in-firsthalf-new-business-value-3160285">Source link </a></p><p>The post <a href="https://forextraderhub.com/insurer-aia-posts-rise-in-new-business-value-as-china-reopens-post-covid-by-reuters.html">Insurer AIA posts rise in new business value as China reopens post COVID By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>