Friday, November 17, 2017

Asian insurance sector’s embedded value up 15.3%

The embedded value of the results of operations of 34 of Asia’s major insurance firms grew 15.3% in 2016, thanks to the 40% growth of value of new business (VNB) across the region.

The Asian embedded value was valued at US$339 billion, up from US$294 billion the previous year.

Life insurance products still sold robustly in Asia based on the gross written premium, which was estimated to have surged by 28%.

The findings came from a survey commissioned by global consultancy firm Milliman Inc.

It took into account the 2016 performance of insurers based in Asia, except Japan.

The survey showed that China and Hong Kong served as the main drivers of VNB growth in Asia.

Milliman principal and consulting actuary Paul Sinnott said the recent rises in the yield curve are freeing some of the margin pressures for many insurers, at least for the short term, despite lingering concerns about the sustainability of profit margins.

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