APE sales increased by 7% YoY to $1.6b.
Prudential&rsquo;s first quarter (Q1&rsquo;24) new business profit yielded an 11% year-on-year (YoY) climb, reaching $810m when excluding economic impacts.&nbsp;
However, when considering economic impacts, new business profit remained relatively stable at $726m.
The period&rsquo;s annual premium equivalent (APE) sales saw a 7% YoY increase, reaching $1.6b.&nbsp;
Despite facing strong comparators in Hong Kong and CPL and encountering headwinds in Vietnam, the business demonstrated continued momentum. In Hong Kong, total APE sales witnessed a modest 1% YoY growth, reflecting a sustained recovery since Q1&rsquo;23.&nbsp;
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Both domestic and Chinese Mainland visitor segments contributed to this growth, with agency and bancassurance sales maintaining consistency compared to the latter half of 2023.
Notably, new business margins saw a YoY increase, reaching 69%, supported by a 16% YoY surge in health and protection APE sales.
Meanwhile, CITIC Prudential Life (CPL), Prudential's joint venture in mainland China, experienced a 17% YoY decline in APE sales year-on-year.&nbsp;
However, sales in the first quarter of 2024 surpassed the total for the previous six months of 2023, emphasising the company's focus on its long-term savings and protection products.&nbsp;
CPL's focus on product optimisation led to a 4-percentage-point increase in new business margins, maintaining consistency with full-year 2023 margins.
Singapore witnessed a continued sales momentum, with APE sales rising by 2% YoY compared to Q1&rsquo;23, accompanied by a 2-percentage-point improvement in new business margins. This trend contributed to an overall increase in new business profit.
In Malaysia, Prudential reported impressive APE growth of 29% YoY, primarily driven by a 50% YoY surge in bancassurance sales, supported by strategic partnerships, particularly with UOB.&nbsp;
Despite a decline in new business margins due to the higher proportion of bancassurance sales, increased APE sales contributed to higher new business profit.
Conversely, Indonesia experienced a 10% YoY decline in APE sales compared to Q1&rsquo;23, attributed to regulatory actions on investment-linked products.&nbsp;
However, significant growth in bancassurance sales mitigated this decline. Lower APE sales impacted new business profit, prompting ongoing transformation efforts to enhance productivity and profitability.
The "growth markets and other" segment saw a robust 28% YoY increase in APE sales, driven by strong performances in Thailand, Taiwan, India, and Africa.&nbsp;
Though new business margins declined due to business mix effects, overall new business profit surged, underscoring the segment's growth potential.
Eastspring, Prudential's asset management arm, witnessed growth in funds under management or advice, reaching $239b by the end of March 2024.&nbsp;
Strong net inflows from the Group's insurance business, coupled with inflows from third parties, contributed to this growth, despite outflows from the institutional business.

Prudential sees 11% YoY rise in Q1'24 new business profit

Insurers have operated 41 overseas businesses in 11 countries as of yearend.
South Korea&rsquo;s net income for domestic insurance companies' overseas ventures ended in the negative, declining by $138.4m to reach -$15.9m, in fiscal year 2023 (FY&rsquo;23).
Conversely, net income for life insurers surged by $27.9m or 86.1% to $60.3m, while non-life insurers faced setbacks due to natural catastrophes, resulting in a decrease of $166.3m to minus $76.2m, data from the Financial Supervisory Service (FSS) showed.
As of year-end 2023, a total of 11 countries hosted 41 overseas businesses operated by four life insurance and seven non-life insurance companies.&nbsp;
The insurance sector overall experienced a net income decline of $138.8m, totalling minus $27.0m in 2023, primarily attributed to significant losses caused by a wildfire on Maui Island.&nbsp;
However, the financial investment sector saw a modest increase in net income by $0.4m, reaching $11.1m, driven by improved performance in real estate rental and leasing.
Regionally, Asia operations reported a yearly net income increase of $24.8m to $129.9m in 2023, whilst European operations saw a net income of $4.1m, up by $7.2m from the previous year.&nbsp;
Conversely, losses in the US expanded by $170.4m, resulting in a net loss of $149.9m for 2023.
Aggregate assets of overseas businesses amounted to $6.44 billion at the end of December 2023, marking a 1.7% increase from the previous year.&nbsp;
However, liabilities contracted by 9.0% to $3.44b due to the implementation of IFRS 17, which measured insurance liabilities at current market value.&nbsp;
Shareholders' equity rose by 17.6% to $3.00b, driven by the introduction of IFRS 17 and paid-in capital.
The FSS will monitor the financial stability of overseas businesses and support newly established operations as domestic insurance companies continue to expand into global markets.

Overseas ventures of South Korean insurers post mixed results in FY’23

About 9 in 10 S&rsquo;poreans said they want to earn without working.
Manulife Singapore's income-generating product, Manulife IncomeGen (II), has been enhanced. This new version features a shorter breakeven period and introduces a terminal cancer benefit, providing more robust financial solutions.
According to the Manulife Asia Care Survey 2024, over 90% of respondents in Singapore have long-term financial goals, with "having income without working" ranking among the top five.&nbsp;
The insurer said the upgraded product targets these aspirations by offering a lifetime of monthly income payouts up to age 120.
Key enhancements include:
<ul>
<li aria-level="1">Shortened breakeven period: Achieve capital guarantee by Year 6 with the '5-Pay' version, down from Year 8.</li>
<li aria-level="1">New terminal cancer benefit: Provides support following a terminal cancer diagnosis, enhancing the policy's significance during critical times.</li>
</ul>
&ldquo;Our customers express significant concern about the increasing cost of living, and almost half are worried about unexpected expenses. Enhancements such as a short premium paying period and a potentially long income payout duration offer our customers a valuable buffer against financial uncertainties.&rdquo; said Mark Czajkowski, Chief Marketing Officer of Manulife Singapore, in a press release.

Manulife Singapore upgrades income-generating product

Tax incentives and the introduction of charging stations are boosting the EV market.
Lower charging and insurance expenses are expected to hasten the adoption of electric vehicles in Singapore and Hong Kong, whilst Indonesians prioritise government subsidies.&nbsp;
Recent developments across the Asia Pacific (APAC) region, including tax incentives and the introduction of new charging stations and car models, are bolstering the electric vehicle (EV) market. The latest YouGov Surveys research focuses on identifying the incentives that consumers in key APAC markets believe would make owning EVs more financially appealing.
<img src="https://assets.charltonmedia.com/s3fs-public/users/user11911/image001_0.png" alt="" width="648" height="623">
&nbsp;
In Indonesia, reducing upfront costs and operating expenses through government incentives and subsidies is the most effective way to encourage EV adoption, with 68% of respondents expressing this sentiment. Additionally, measures like extended warranty and maintenance packages (66%) and reduced charging costs (65%) are also highly desired by consumers.
In Singapore, making EVs cheaper to maintain and purchase is paramount. Lower charging and insurance costs (both 66%) are particularly appealing, along with government incentives and subsidies (65%) and extended warranty and maintenance packages (64%).
Similarly, in Hong Kong, reducing upfront costs and operating expenses is crucial for EV adoption. Government incentives and subsidies (60%) and extended warranty and maintenance packages (58%) are seen as effective measures to make EVs more financially attractive.
The data is based on YouGov Surveys conducted online in January, with samples ranging from 510 to 2,044 adults aged 18+ in 17 markets.
&nbsp;

Insurance incentives sweeten EV deal for consumers

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Chubb, the insurer for Baltimore's Francis Scott Key Bridge, is preparing to pay $350m to Maryland following its collapse in March, reported Reuters.
This payout, likely to be authorised soon, marks the first significant compensation related to the incident. Analysts anticipate total insurer payouts could reach $4b, constituting a record shipping insurance loss.
The bridge collapse, resulting in six deaths, occurred when a Singapore-flagged container ship collided with it. The FBI has initiated a criminal investigation into the incident, leading to the closure of a major US port.
Reports suggest that Chubb, Maryland, and the victims' families may pursue legal action against the ship owner and others to recover losses. Chubb has refrained from commenting on this matter upon Reuters' request.
Baltimore's mayor and city council have already filed a lawsuit against the ship's owner and operator, alleging negligence in the incident.

Chubb, Maryland to discuss $350m compensation deal: Report

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