AIA Singapore's FY16 value of new business down on lower single premium sales

Singapore

LOWER single premium sales through the broker channel dented insurer AIA Singapore's value of new business (VONB), a measure of expected profits from new premiums. It fell 7 per cent to US$316 million for the full year as at end November 2016.

AIA Singapore on Friday said that VONB from its regular premium business comprising protection and savings plans, had risen 16 per cent year on year in FY16. But this was offset by the lower single premium sales of products such as universal life, through the broker channel - a reflection of its approach to managing product mix through proactive pricing actions and lower overall market sales to deliver growth over the long term.