Asia’s exploding middle class, including China, will drive AIA’s insurance growth, says CEO
Pan-Asian life insurer ready to expand in China as soon as government liberalises sector
AIA Group, the largest pan-Asian life insurer, is upbeat on future growth and is ready to expand in China once the government fully opens up the sector to foreign firms, chief executive Ng Keng Hooi, said on Tuesday.
AIA also reported better-than-expected earnings for 2017, with a key gauge of the company’s future profitability hitting a new high, thanks to continued strong growth in new business in China and Hong Kong and a surge in investment returns because of capital market gains.
The China unit was the fastest growing business, with the value of new business up 60 per cent from a year ago to US$828 million on a constant exchange basis, thanks to the increase in the number of active agents and the extensive use of digital technology that has driven higher agent productivity levels, the company said.
“We are confident we can sustain our new business margin in China in the future,” Ng said.
The changes in the spending habits of China’s growing middle class as result of their increasing disposable incomes will be a key driver of AIA’s insurance business in the long term, he added.
The margin for the value of new business in China reached 85.5 per cent in 2017, the highest among regions.
