20 Apr, 2026
AIA, Prudential post double-digit growth in new business value in 2025
Two of Hong Kong's largest life and health insurers by market capitalization reported double-digit percentage growth in new business value in 2025, driven by diversified products and distribution channels.
AIA Group Ltd. saw its value of new business grow 16.9% year over year to HK$43 billion in 2025, according to S&P Global Market Intelligence data. The life insurer's focus on protection and unit-linked solutions, which carry low or no investment guarantees, contributed to the growth.
"Traditional protection products generate underwriting profits that are not dependent on capital market movements, while participating in unit-linked solutions generate stable fee-based insurance income," AIA Group CFO Garth Jones said during a March earnings call. "Over 90% of our [value of new business] is generated from these most attractive product lines with very low average guarantees and strong and predictable cash generation."
Most AIA markets saw double-digit increases, with notable performances in Hong Kong, Thailand, Singapore and mainland China, according to its annual report. Hong Kong stood out, supported by a surge in both domestic customers and mainland Chinese visitors, while Thailand and Singapore benefited from professional agency distribution and increased digital engagement.
Agency distribution contributed significantly to AIA's new business growth in 2025, backed by growth in active agent numbers, improved productivity and a capital-efficient product mix.
Health and protection products accounted for 36% of new business profit, while fee-based savings products contributed 50%, CFO Benjamin Bulmer said during an earnings call. "A core pillar of our strategy is to focus on growing high-quality profitable new business, which quickly monetizes," Bulmer said.
Prudential's bancassurance channel was a major contributor to new business profit. The life insurer also reported improved agency channel performance, driven by growth in Hong Kong and Singapore.
The third largest Hong Kong-based life and health insurer by market capitalization, China Taiping Insurance Holdings Co. Ltd., posted a more modest growth, with value of new business rising 5.4% to HK$9.59 billion.
AIA recorded the largest operating profit among the three insurers, with HK$67.42 billion in 2025, despite a 3.1% decline from HK$69.57 billion in 2024. Prudential experienced the largest year-over-year percentage increase, with operating profit rising 51.3% to HK$44.86 billion in 2025. China Taiping followed with a 41.8% increase to HK$36.89 billion.
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Steady gains in service results
The three life insurers reported solid improvements in their insurance service results for 2025, according to S&P Global Market Intelligence's IFRS 17 data.
AIA led with a 19.7% year-over-year increase in insurance service result to HK$53.87 billion in 2025. The company's performance was driven by a higher contractual service margin (CSM) release, reflecting a larger CSM balance, and positive operating variances, including improved claims experience under its Integrated Healthcare Strategy. AIA generated the largest insurance service revenue among peers, up 11.8% to HK$168.53 billion. Its insurance service expenses grew 8.3% to HK$111.03 billion.
Prudential saw a 14.4% increase in its insurance service result to HK$20.46 billion. It recorded a 6.9% rise in insurance service revenue to HK$86.38 billion, while insurance service expenses grew 6.1% to HK$64.27 billion.
China Taiping saw its insurance service result grow by 9.0% to HK$24 billion, largely attributed to better performance in its life insurance segment. Insurance service revenue edged up 0.9% to HK$112.27 billion, while insurance service expenses inched up 0.5% to HK$86.83 billion.