AIA Singapore reveals first half results

AIA Singapore reveals first half results | Insurance Business

AIA Singapore reveals first half results

AIA Singapore has released its results for the first half of 2019, marked by a slight decline in new business amid a “challenging market environment.”

According to a statement by the insurance company, value of new business (VONB) was US$173 million, down 2.8% from US$178 million during the same period last year. VONB margin, however, improved by 3.4 percentage points to 64.8%. Annualised new premiums (ANP) decreased by 6% year-on-year to US$267 million.

Despite the decrease in new business, total weighted premium income grew by 7%, supported by renewal premiums, the insurer said. Operating profit also increased by 5%.

The company highlighted its investments in digital platforms to improve engagement with customers, accompanied by an increase in the number of active agents, which was offset by lower sales of single premium business. According to AIA Singapore, these moves are part of its ‘Premier Agency’ strategy.

Read more: AIA new business up 20% in first half

Going forward, AIA Singapore said it will continue to focus on strengthening distribution networks, including both agency and bancassurance channels. It will also enhance its value proposition for customers in product innovation as well as its wellness programme AIA Vitality. The firm will continue to improve its digital offerings for both customers and agents to meet the demands of a highly digitalised economy – as shown by 90% of new business having been submitted electronically via the iPoS (interactive point of sale) system.

“Despite a challenging market environment, AIA Singapore reported profitable performance and remains committed to investing in our digital transformation to better serve our customers,” said Patrick Teow, CEO of AIA Singapore.

“As we celebrate AIA’s centennial in 2019, we are thankful for the trust, support and loyalty of our customers over the years and will continue to keep our customers and their families at the heart of everything we do, enabling them to live healthier, longer, better lives.”