AIA Group VONB Declines 5% Amid Mainland China Headwinds

AIA Group Limited reported a 5% decrease in Value of New Business (VONB) for the third quarter of 2026, reaching US$1.415 million, as challenges in Hong Kong and the Chinese Mainland weighed on overall performance. The decline partially offset by an 18% increase in VONB across other reportable segments.

The results reveal a mixed picture across AIA’s key markets. In Hong Kong, VONB decreased by 3%, impacted by exceptionally strong sales in July 2025, though a rebound was seen in August and September with 20% year-on-year growth. AIA China experienced a more substantial 33% decrease in VONB, attributed to accelerated customer purchases in the prior year ahead of industry-wide repricing. However, agency VONB in China rebounded strongly in September, with the company anticipating continued growth momentum into the fourth quarter.

Conversely, several markets demonstrated robust growth. AIA Thailand reported a 9% VONB increase, while Singapore and Malaysia saw excellent growth of 22% and 10% respectively. Growth was also strong in ‘Other Markets’ including India, Taiwan, and Vietnam. This regional diversity helped to mitigate the impact of headwinds in Mainland China.

Despite the decline in overall VONB, AIA saw a notable improvement in its VONB margin, which increased by 5.3 percentage points to 63.5%, benefiting from favourable product and channel mixes in the Chinese Mainland. The group maintained its confidence in achieving its previously announced OPAT per share compound annual growth rate (CAGR) target of 9 to 11% from 2023 to 2026.

The results reflect a dynamic operating environment marked by geopolitical tensions and volatility in global capital markets, although AIA emphasized the continued strength of long-term growth drivers in the Asian region, including favourable demographics and low insurance penetration. The company’s strategic focus remains on leveraging these drivers to deliver profitable growth and increased shareholder value.