KEY FINANCIAL SUMMARY
Growth rates are shown on a constant exchange rate basis.
Value of new business (VONB) of
Annualised new premiums (ANP) grew 10 per cent to
VONB margin up 4.5 pps to 61.6 per cent
Total weighted premium income (TWPI) up 6 per cent to
Accident Pro Prime
'AIA has exceeded pre-pandemic levels of new business for each of our segments other than
'The momentum that returned to our businesses, as movement restrictions eased in 2020, has continued into 2021. VONB growth is broad-based across the Group, and has been driven by excellent performance from our
'We are making excellent progress with our strategic priorities, further extending our competitive advantages as we harness the opportunities available to AIA across
'The Group's financial position has remained very strong through the recent exceptional volatility,
giving peace of mind to our millions of customers. The pandemic has increased awareness of health and wellness and we have seen very strong growth in protection VONB compared to the first quarter of 2020 as we help more people across
SUMMARY FOR THE FIRST QUARTER
AIA's wholly-owned operation in Mainland China remained the largest contributor to the Group's VONB and achieved excellent growth compared with the first quarter of 2020. VONB margin was consistent with the prior year despite the deduction of 5 per cent withholding tax since
Following approval from the
AIA Hong Kong achieved double-digit VONB growth from the domestic customer segment, while travel restrictions continue to limit sales from Mainland Chinese visitors. In our
In March, we announced a 15-year exclusive bancassurance partnership with
AIA Thailand achieved excellent VONB growth, driven by both agency and partnership channels, and was the second-largest contributor to the Group's VONB in the first quarter of 2021. VONB margin increased significantly resulting from our successful shift in product mix towards protection and unit-linked businesses.
In
AIA Malaysia continued its strong momentum from the second half of 2020 and delivered the highest VONB growth among our reportable segments, supported by both our agency and our bancassurance partnership with
VONB from Other Markets reduced, reflecting the effect of ongoing movement controls in
Overall, VONB margin improved to 61.6 per cent, up from 56.6 per cent in the first quarter of 2020, mainly driven by geographical mix shift and higher government bond yields, partially offset by the deduction of withholding tax for AIA China. The VONB margin is stated net of acquisition expense overruns, and the long-term investment return assumptions remain unchanged from those shown in our Annual Report 2020. Margin reported on a present value of new business premium (PVNBP) basis was stable compared with the first quarter of 2020 at 10 per cent. ANP of
OUTLOOK
The long-term prospects for AIA's businesses are exceptional given our substantial competitive advantages and the powerful structural growth drivers for life and health insurance in
Global economic growth gained traction in the first quarter of 2021 as unprecedented fiscal and monetary support helped reduce the burden of the pandemic shock. While the outlook remains dependent on government and central bank policies, effectiveness of containment measures and the acceleration of vaccination programmes, we remain cautiously optimistic as the economic recovery extends from manufacturing-led sectors to consumption and services.
We are confident that the execution of our strategic priorities will build on our strong track record of growth and generate long-term sustainable value for shareholders.
FOREIGN EXCHANGE VOLATILITY
AIA receives the vast majority of its premiums in local currencies and we closely match our local assets and liabilities to minimise the economic effects of foreign exchange movements. When reporting the Group's consolidated figures, there is a currency translation effect as we report in US dollars. We have provided growth rates and commentaries on CER unless otherwise stated, since this provides a clearer picture of the underlying performance of the businesses.
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Notes:
AIA's first fiscal quarter of 2021 and 2020 ended on
All figures are presented in actual reporting currency (US dollars) and based on actual exchange rates (AER) unless otherwise stated. Change is shown on a year-on-year basis and based on constant exchange rates (CER) unless otherwise stated. Change on CER is calculated using constant average exchange rates for 2021 and 2020.
Long-term investment return assumptions used in the embedded value (EV) basis for the first quarter 2021 results are the same as at
VONB is calculated based on assumptions applicable at the point of sale. Starting from 2021, the risk margins assumed in the VONB calculations are determined at a product level to better reflect the risk associated with the mix of products sold during the reporting period, as previously announced in our Annual Report 2020. VONB for the Group excludes VONB attributable to non-controlling interests. ANP and VONB for Other Markets include the results from our 49 per cent shareholding in
VONB includes pension business. ANP and VONB margin exclude pension business and are before deduction of non-controlling interests.
ANP represents 100 per cent of annualised first year premiums and 10 per cent of single premiums, before reinsurance ceded and excluding pension business.
TWPI consists of 100 per cent of renewal premiums, 100 per cent of first year premiums and 10 per cent of single premiums, before reinsurance ceded.
In the context of our reportable market segments,
The results of Tata AIA Life are accounted for the three-month period ended
About AIA
The business that is now AIA was first established in
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across
Contacts
Investment Community
Lance Burbidge +852 2832 1398
Evelyn Lam +852 2832 1633
Feon Lee +852 2832 4704
Rachel Poon +852 2832 4792
News Media
Cecilia Ma Zecha +65 9651 3976
Dudley White +852 2832 1978
As for all quarterly new business highlights announcements, there will not be a conference call for media or investors and your usual contact will be available to answer queries.
This document may contain certain forward-looking statements relating to the Group that are based on the beliefs of the Group's management as well as assumptions made by and information currently available to the Group's management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. When used in this document, the words 'will', 'should', 'continue', 'future', 'expect', 'anticipate', 'believe' and similar expressions are intended to identify forward-looking statements. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements.
This document is for information purposes only and does not constitute an invitation or offer by any person to acquire, purchase or subscribe for securities. This document is not, and is not intended to be, an offer of securities of the Company for sale in
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