AIA records successful third quarter

AIA recorded a 26 percent increase in Value of New Business (VONB) to US$ 379 million, 21 percent growth in annualised new premium (ANP) to US$ 839 million, 44.7 percent VONB margin, an increase of 2.1 percentage points (pps) and total weighted premium income (TWPI) growth of 14 percent to US$ 4,409 million.

AIA's Group Chief Executive and President, Mark Tucker said, "AIA has delivered excellent results in the third quarter with our highest-ever value of new business at US $379 million. The increase of 26 percent is a direct result of our growth strategy and builds on the strong results we achieved in the first half of 2013. This performance reflects the consistent growth momentum AIA has delivered since the IPO."

"Our third quarter figures demonstrate the powerful combination of AIA's advantaged position as the largest independent pan-Asian life insurance company and the substantial progress we are making as a standalone, dynamic Asian company; a journey that began three years ago," he said.

"We will continue to capitalise on AIA's key competitive advantages by improving productivity and quality of our distribution platforms, launching innovative new products, and leveraging our financial strength and regional brand position to meet the growing savings and protection needs of customers," Tucker said.

"VONB increased by 26 percent to US$379 million compared with the third quarter of 2012. Each of our geographic market segments delivered double digit growth in VONB over the quarter, building on the strong performance in the first half of the year," he said.

Highlights of the quarter include the ongoing positive momentum achieved by AIA in Hong Kong and China, the excellent growth from our Philippine and Indonesian businesses and sustained improvements in our Korean operation.

AIA delivered a strong increase of 21 percent in ANP to US$839 million in the third quarter. The VONB margin improved by 2.1 percentage points to 44.7 percent compared with 42.6 percent in the third quarter of 2012.

Margin expansion was achieved mainly through a positive improvement in product mix.

AIA's proprietary agency channel accounted for 71 percent of VONB in the third quarter and was a key driver of overall VONB growth.

"The successful delivery of our premier agency strategy continued with growth in the number of active agents and agent productivity in the third quarter. We continued to review our agency compensation structure in Thailand, as highlighted in our interim results. Partnership distribution also reported solid growth, benefiting from strong bancassurance and group insurance results and the ongoing restructuring of our direct marketing channel in Korea," Tucker said.