AIA Group Ltd reported a 27% drop in quarterly new business value on Friday for the first time since listing in Hong Kong in 2010, hit by disruptions caused by the COVID-19 pandemic in its main markets.
While the lockdowns have hurt AIA and a host of other global life insurance companies, their investment income came under further strain due to lower interest rates and a market rout.
The insurer's new business value, which measures expected profits from new premiums and is a key gauge for future growth, fell to $841 million in the first quarter, from $1.17 billion a year earlier.
New business value in Hong Kong saw a "substantial" decline, while in China, AIA reported a low double-digit decline due to the health crisis. Measures to contain the pandemic had the most significant impact on our businesses in Hong Kong and Mainland China during the quarter. China and Hong Kong together account for about half of new business growth globally at AIA.
AIA has long benefited from demand for insurance products in its two biggest markets of Hong Kong and China, but has faced sharply slowing growth in recent quarters due to anti-government protests and an economic downturn in Hong Kong.
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