AIA’s New Business Value Falls 5% to $1.415 Billion in Third Quarter
Key Facts
Hong Kong’s AIA Group said on October 30 that its new business value reached $1.415 billion in the quarter ended September 30, 2026, down 5% on a constant currency basis. The value was $1.476 billion in the same quarter a year earlier, while the decline was 4% at actual exchange rates. The results show a third-quarter decline after strong growth in the first half, but also include the group’s return to growth in September. The company said the overall decline reflected falls in Hong Kong and mainland China. This was partly offset by 18% growth in new business value in the other segments reported by the group.
In the first nine months of 2026, new business value rose 5% to $4.627 billion at constant exchange rates, compared with $4.314 billion in the same period of 2025. At actual exchange rates, nine-month growth was 7%. This cumulative result puts performance on a different track from the third-quarter result alone, as growth remained positive year to date despite the quarterly decline. The company reported new business value of $3.212 billion in the first half, up 10% year on year. In 2025, value rose 15% to a record $5.516 billion.
The new business value margin improved to 63.5% in the third quarter, up 5.3 percentage points from the same quarter a year earlier. The improvement came as annualized new premiums fell 13% to $2.237 billion. The margin was 58.2% in the third quarter of 2025, while annualized new premiums then reached $2.550 billion. The figures show the margin moving in a different direction from the volume of new premiums during the period. Thus, the decline in total new business value coincided with a rise in its annualized margin.
AIA said the group’s new business value returned to growth in September, recording an annual increase of more than 25%. In Hong Kong, value fell 3% in the third quarter, which the company attributed mainly to exceptional sales in July 2025. Combining August and September 2026, Hong Kong new business value rose 20% year on year. The two-month result differed from the quarterly result because the comparison included high sales levels at the start of the corresponding period. The company said September’s growth followed the declines reflected in the quarter’s total.
In mainland China, new business value at AIA China fell 33% in the third quarter. The company linked this mainly to a higher base of comparison in the previous year. In 2025, customers brought purchases forward ahead of repricing across the sector on September 1. The group said this acceleration in purchases contributed to the higher year-on-year comparison facing the current quarter’s results. China’s decline came alongside the fall in Hong Kong among the factors that reduced the group’s overall result.
Elsewhere, new business value in other markets rose 14% in the third quarter, with growth in India, Taiwan and Vietnam. Singapore recorded a 22% increase, while value in Malaysia rose 10%. These results formed part of the 18% growth in the group’s other reported segments. The performance of those markets helped offset part of the decline in Hong Kong and mainland China, according to the company’s statement. The results show divergence across the group’s markets over the same period, with growth in several Asian markets alongside declines in the two markets with the greatest impact on the overall result.
In the October 30 session, AIA shares rose about 3.8% to HK$74.4, while the Hang Seng Index gained more than 1%, according to Investing.com coverage. The coverage linked the share move to the quarterly results, as well as a broader rotation away from technology stocks. The company announced a new $1.7 billion share buyback programme as part of its 2025 results. It also raised total annual dividends 10% to 193.08 Hong Kong cents per share. This background provides context for the company’s results, while the October announcement focused on new business value and its operating indicators.
Group Chief Executive Lee Yuan Siong said AIA entered the fourth quarter with strong momentum, adding: "We expect to exceed our target of 9% to 11% compound annual growth in operating profit after tax per share for the period from 2023 to 2026." The company announced this target with its 2026 interim results. The chief executive’s statement links fourth-quarter expectations to the operating profit per share target over the specified period. The group also said it was confident in its outlook, given the momentum it cited as it entered the fourth quarter. The company’s stated target and outlook remain tied to the period from 2023 to 2026.