Last year’s launch of Aviva Financial Advisers has been instrumental in what has been dubbed a successful year for Aviva Asia.
Aviva Asia has published its full year financial results for 2016, with an operating profit of £228m (US$308m) announced by the company.
In a statement announcing its result the company said that “Singapore successes” that saw Aviva Asia selected as exclusive provider of group term insurance for the Singapore Ministry of Defence (MINDEF) and the Ministry of Home Affairs (MHA), and the launch of Aviva Financial Advisers, had driven the results.
The financial results for the 12 months ended 31 December 201 saw the company strengthen its existing distribution platforms in Asia, particularly through Aviva Financial Advisers in Singapore, which, as reported, was launched in August 2016, and the agency and broker channels in China have continued to grow.
23% growth in Singapore
Aviva Asia recorded value of new business (VNB) of £148m (US$200m), on a like for like basis, excluding contribution of the bancassurance agreement with DBS Bank with VNB in Singapore growing 23% in 2016, far exceeding the market average of 6%, the company said.
Aviva Financial Advisers is a financial advisory firm with approximately 420 financial advisers who are licensed to provide a full range of life, health, general insurance and investment products. The establishment of Aviva Financial Advisers responded to “growing customer demand for choice in insurance and personalised financial advice” and is set to accelerate the transformation the FA industry in Singapore as a whole, Aviva Asia said.
In Indonesia, Astra Aviva Life’s annual premium equivalent doubled over prior year, the company said.
Chris Wei, executive chairman of Aviva Asia & FPI and global chairman of Aviva Digital, pictured left, said that the Asian markets are “strategically important” to Aviva, owing to large populations in fast-growing economies including China and Indonesia, coupled with relatively low insurance penetration rates and social insurance coverage.
“In order to fuel future growth, Aviva Asia has been investing in distribution, digital and analytics capabilities,” he said. “Aviva Financial Advisers in Singapore is an exciting example of how we are anticipating customer needs and providing more choice and access to an extensive range of products from Aviva and other trusted providers.
Hong Kong insurance
“Looking even further into the future and as part of our Digital First strategy, Aviva, Hillhouse Capital Group and Tencent Holdings Limited recently announced an agreement to develop an insurance company in Hong Kong, focusing on digital insurance.
“These types of initiatives will drive our transformation in Asia, disrupting the insurance industry. I look forward to launching the new company in Hong Kong which will benefit our customers and distributors and take our business to the next level in the years to come.”