ASIA-FOCUSED insurer Prudential recorded new business profit of US$2.1 billion for its nine months ended September 2023.

This is up 37 per cent, on a constant exchange rate basis, from the US$1.6 billion it posted in the same period a year earlier, as margins improved due to positive developments in the insurer’s channel and geographic mix, Prudential said.

Annual premium equivalent (APE) sales – a measure of new business activity – rose 40 per cent to US$4.4 billion, led by growth in Hong Kong from increased sales to mainland Chinese visitors and domestic customers.

On Monday (Nov 6), Prudential chief executive Anil Wadhwani said the new business momentum in the first half of 2023 had continued in the third quarter.

APE sales through the agency channel in the nine-month period rose 81 per cent, while new business profits were up 62 per cent year on year, despite negative impact from interest rate movements.

This reflected the continued demand from mainland Chinese visitors and domestic customers in Hong Kong, as well as an improvement in agency production in the majority of the other markets, the insurer said.

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During the nine-month period, 15 of the insurer’s life markets across Asia and Africa also delivered double-digit growth in new business profits, Wadhwani added.

India’s ICICI Prudential Life and Africa delivered double-digit growth for APE sales and new business profits.

In Indonesia, overall growth in new business profit remained robust, even as the positive effect from product repricing and upgrades seen in H1 moderated in the third quarter.

In Singapore, APE sales rose on the year in the third quarter due to a rebound in the bancassurance channel. But total new business profits for the first nine months of 2023 were down on the year amid the higher interest-rate environment.

Meanwhile, APE sales and new business profit in Vietnam declined more in the third quarter than the first half of 2023, amid an industry-wide fall in consumer sentiment.

Citic Prudential Life in China also saw a decline in APE sales in the first nine months, amid industry-wide changes in product and bancassurance distribution regulations, on top of the bank’s move to diversify product mix.

But Wadhwani expects the changes will benefit the development of the domestic industry, by increasing the role for insurance to meet customer needs, and providing continuing demand for long-term savings and health and protection products.

In the nine-month period, health and protection products accounted for 37 per cent of the insurer’s total new business profit.

Wadhwani said: “Looking forward, the environment continues to be challenging, but new business momentum has continued into the fourth quarter supported by our multi-market growth engine.”