Continuing from the robust half year results, the AIA Group achieved a substantial 35% in the value of new business (VONB) to US$994 million in the third quarter of 2023.
This exceptional growth was facilitated by outstanding performances across the company's distribution channels. Notably, the proprietary agency witnessed a 27% increase in VONB, while the partnership distribution exhibited a 62% growth compared to the same period in 2022.
This VONB growth was also widespread, marked by double-digit surges from operational segments in Mainland China, Hong Kong, ASEAN, and India. The company further reported a 36% year-on-year increase in VONB for the initial nine months of 2023, amounting to US$3.023 billion, surpassing the entirety of the 2022 results on a constant exchange rate basis.
AIA China experienced over 20% growth in VONB during the third quarter, marking an acceleration from the first half. The company benefited from Mainland China's reopening post-pandemic. While witnessing robust demand for long-term savings products, AIA also recorded vigorous double-digit VONB growth from critical illness products in the third quarter of 2023. Notably, the high-quality Premier Agency remained a key contributor to VONB growth.
Within the bancassurance channel, strong quarter-on-quarter growth and an enhanced VONB margin contributed to increased VONB. The VONB margin for the agency remained largely stable compared to the first half, while the overall VONB margin steadily improved throughout the third quarter, supported by a higher proportion of traditional protection business, favourable changes in product mix within long-term savings business, and product repricing.
AIA Hong Kong also witnessed an impressive surge in VONB compared to the third quarter of 2022. Although the domestic business observed a slight decline compared to the robust figures from the previous year, sales to Mainland Chinese visitors continued to exhibit significant growth. The Premier Agency displayed ongoing recruitment momentum, surpassing pre-pandemic agent productivity levels. Within the partnership channel, AIA observed substantial growth from both bancassurance and retail independent financial advisers (IFAs).
Continuing its strong momentum from the initial half of the year, AIA Thailand reported exceptional VONB growth in the third quarter of 2023, supported by increased sales volumes and a more favourable product mix. Both the number of active agents and agent productivity experienced double-digit percentage increases, and significant growth was witnessed in new recruitments. Businesses in Singapore and Malaysia observed increased VONB, propelled by growth from both the agency and partnership distribution channels.
Despite negative consumer sentiment impacting the life insurance industry in Vietnam, other markets displayed growth in VONB. The growth was driven by robust double-digit VONB growth from India and the Philippines. In India, Tata AIA Life performed remarkably well through its proprietary agency and was ranked as the third largest private life insurer in the country. Collectively, ASEAN businesses demonstrated double-digit VONB growth.
Overall, annualised new premiums (ANP) for the group soared by 54% to US$1.938 billion, while the VONB margin increased to 51.2% from the first half of 2023. The long-term investment return assumptions used to compute VONB remained unchanged, consistent with the details outlined in the Annual Report 2022. Compared with the third quarter of 2022, the margin reported on a present value of new business premium (PVNBP) basis remained steady at 10%, while the total weighted premium income (TWPI) increased by 9% to US$9.355 billion, reported Insurance Business.