Life insurer on track to double market share
AIA New Zealand sees this country's chronic under-insurance as an opportunity for growth.
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Life insurer AIA New Zealand has had a strong year, with the value of its annualised new premium (ANP) increasing by 70% year on year in the year to June.
Its value of new business (VoNB) increased 300% year on year, while its compound annual growth rate for new business had increased 26.6% since June 2009 and 33% year-on-year since June 2010.
“We also had a very strong first quarter to March 2011 with an 89% increase on the March 2010 quarter and are tracking well with growth still above market expectations for the June quarter,” AIA New Zealand chief executive Wayne Besant says.
“Within the business our positive retention ratio trend continues. The 12-month rolling annualised new premium retention ratio at June 2011 was just over 88% (vs. 85.7% at the end of June 2010). This is in line with the market.”
Mr Besant says AIA’s market share in business life insurance was about 5% when he first spoke to The National Business Review last year, soon after being appointed.
“We’ve been writing about 10% of new business growth for the last three quarters, and our market share is now up to just under 7%.”
He says New Zealanders are chronically under-insured when it comes to life insurance, a problem highlighted by the Christchurch earthquake where many of the victims were un-insured.
Mr Besant says the problem is particularly acute among Maori and Pacific Islanders, and to help raise awareness AIA has formed a partnership with Maori Television, sponsoring the popular Marae DIY show.
Niko Kloeten
Mon, 01 Aug 2011
Mon, 01 Aug 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Life insurer on track to double market share
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