China Opens Up - As China ended its stringent zero COVID-19 policy late last year and gradually removed border restrictions, mainland visitors have started to buy insurance again in the Asian financial hub. Hong Kong insurance has long been a channel for Chinese buying assets abroad, with the policies providing more protection than what is available on the mainland, and attendant savings and investment products mostly denominated in dollars.
Prudential's annualised premium equivalent (APE) sales, a closely watched gauge of insurance sales, rose 37% to $3 billion on a stronger pickup in sales from Chinese mainland visitors to Hong Kong.
AIA - Hong Kong-based insurers including Prudential and AIA Group benefited from Chinese investors rushing to buy Hong Kong insurance, as well as making other U.S. dollar investments, as investor confidence in local markets languished.
AIA last week reported a 37% rise in the value of new business in the first half of this year, beating estimates, as sales rebounded in its key markets of mainland China and Hong Kong after the lifting of pandemic restrictions.
Prudential said APE sales in Hong Kong rose more than four times in the first half, and business generated from Chinese mainland visitors enjoyed a "significant increase" following the opening of the border.
The outlook for Asia-focused insurers in the near future, however, is set to be clouded by slowing growth momentum in the Chinese economy, which has resulted in a surge in the unemployment rate and is weighing on disposable income.
Profits - Adjusted operating profit of the London and Hong Kong dual-listed company was $1.46 billion for January-June, versus $1.41 billion in the same period a year earlier.
Prudential said it expects the strategy to generate 15%-20% compound annual growth in new business profit by 2027, and achieve double-digit compound annual growth in operating free surplus in the same period.
AIA - Hong Kong-based insurers including Prudential and AIA Group benefited from Chinese investors rushing to buy Hong Kong insurance, as well as making other U.S. dollar investments, as investor confidence in local markets languished.
AIA last week reported a 37% rise in the value of new business in the first half of this year, beating estimates, as sales rebounded in its key markets of mainland China and Hong Kong after the lifting of pandemic restrictions.
Prudential said APE sales in Hong Kong rose more than four times in the first half, and business generated from Chinese mainland visitors enjoyed a "significant increase" following the opening of the border.
The outlook for Asia-focused insurers in the near future, however, is set to be clouded by slowing growth momentum in the Chinese economy, which has resulted in a surge in the unemployment rate and is weighing on disposable income.
Profits - Adjusted operating profit of the London and Hong Kong dual-listed company was $1.46 billion for January-June, versus $1.41 billion in the same period a year earlier.
Prudential said it expects the strategy to generate 15%-20% compound annual growth in new business profit by 2027, and achieve double-digit compound annual growth in operating free surplus in the same period.
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