AIA reports new business results for first quarter of 2022

Value of new business (VONB) of US$853 million, down 18 per cent

New business sales regaining momentum as Omicron infections subside

Annualised new premiums (ANP) reduced by 7 per cent to US$1,567 million

VONB margin down 7.6 pps to 54.4 per cent

Total weighted premium income (TWPI) up 5 per cent to US$9,948 million

Lee Yuan Siong, AIA’s Group Chief Executive and President, said:

“AIA’s geographically diversified portfolio of businesses is well positioned to capture the long-term opportunities across Asia, the world’s most attractive region for life and health insurance. 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 the first quarter of 2022, the Omicron variant drove unprecedented levels of COVID-19 infections and a temporary disruption to new business sales across many of our markets. While the timing has varied by market, in most cases daily infections increased exponentially and subsequently fell rapidly, limiting the duration of the most significant sales disruption. 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. As previously reported, a regulatory change in February 2021 accelerated demand for traditional protection and drove an exceptional first quarter. While VONB margin declined as strong sales of long-term savings maintained the more balanced product mix of the second half of last year, we delivered an increase in ANP compared to the first quarter of 2021.