Peter ‘s appointment comes on the back of over 26 years’ experience across the life insurance, fund and superannuation industries, both in Europe and in the Asia-Pacific region.  His broad knowledge of the financial services industry will provide a new perspective to the FSC board.

Since joining the AIA Group in 1994, Peter has held a variety of senior executive roles throughout the Asia-Pacific region, before his appointment as Chief Executive Officer for AIA Australia in December 2011.

Under Peter’s leadership AIA Australia has grown to become the fifth largest life insurer in Australia with over $1.4b in annual premiums. The company now covers more than three million Australians with life insurance, and is currently the largest group life insurer by market share.

Commenting on his appointment, Peter Crewe said that the new role will provide an opportunity to ensure that life insurance takes on greater prominence in Australia.

“While there have been improvements recently, underinsurance is still a big issue for Australia. We are trying to address this as a business, and I look forward to working with Greg and my fellow directors to ensure that the standards that are agreed by the FSC for the provision of life insurance benefit all Australians.”

In addition to the appointment to the board of the FSC, Peter is also a board member of the Australian Science Media Centre, an independent, not-for-profit service for the news media, giving journalists direct access to evidence-based science and expertise.

Greg Cooper, chairman of the Financial Services Council said: “Peter brings extensive Australian and International experience in the life insurance industry to the FSC board.”

“He will be part of a critical stage in the growth of Australia’s financial services industry as it expands from $2 trillion today, to $3 trillion by 2020,” Mr Cooper said.

The Financial Services Council board now includes:

• Chairman: Greg Cooper  – CEO, Schroder Investment Management Australia Limited
• Deputy Chairman:  Brad Cooper – CEO, BT Financial Group;
• Directors: Brian Benari – MD and CEO of Challenger Limited; David Bryant:  CEO & CIO of Australian Unity Investments; Robin Burns – MD, Equity Trustees Limited; Andrew Hagger – group executive, NAB Wealth and CEO MLC Limited; John James – MD and Chairman of Vanguard investments; Brett Jollie – MD, Aberdeen Asset Management Australia Limited; Geoff Lloyd –CEO and MD, Perpetual Limited; Annabel Spring – Group Executive, Wealth Management, Commonwealth Bank of Australia; Geoff Summerhayes – CEO Suncorp Life; and,  Maria Wilton – MD, Franklin Templeton Investments Australia Ltd.

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Peter Crewe

Life insurance specialist AIA Australia continues its path of solid performance, as AIA Group Limited yesterday announced a record value of new business (VONB) for the third quarter ending 31 August 2013.

The Hong Kong listed entity reported a 26 per cent increase in the value of new business (VONB) to US$379 million, as well as a 21 per cent increase in annualised new premium to US$839 million and a VONB margin of 44.7 per cent.

Recently awarded ANZIIF’s 2013 Life Insurance Company of the Year, AIA Australia continues to perform strongly in the local group insurance market, with 24.3 per cent of in-force business. Its retail in-force business has grown by more than double the market over the last 12 months – 23 per cent for AIA Australia compared to broader retail market growth of 10 per cent[2].

Commenting on the results AIA Australia chief executive, Peter Crewe, said:“AIA Group has delivered another outstanding set of results, and the team at AIA Australia is playing a big part in this. We have consistently had double-digit growth over the last four years, and that all stems from our ability to provide exceptional value to our customers and partners.”

Highlights of AIA Group’s performance in the 3^rd quarter include:

• 26 per cent increase in value of new business (VONB) to US$379 million
• 21 per cent growth in annualised new premium (ANP) to US$839 million
• 44.7 per cent VONB margin, an increase of 2.1 percentage points (pps)
• Total weighted premium income (TWPI) growth of 14 per cent to US$4,409 million.

“As an industry, it is important for us to keep focused on helping people get access to cover and having a more secure financial future. This is what drives us every day at AIA Australia. These results show that we are making good progress in achieving this objective”, Mr Crewe concluded.

Summary of the third quarter

VONB increased by 26 per cent to US$379 million compared with the third quarter of 2012, as AIA continued to optimise both new business volume and margin to deliver sustainable growth.

Each of the geographic market segments delivered double-digit growth in VONB over the quarter, building on the very strong performance in the first half of the year. Highlights of the quarter include the ongoing positive momentum achieved by AIA in Hong Kong and China, the excellent growth from the Philippine and Indonesian businesses, and sustained improvements in the Korean operation.

AIA delivered a strong increase of 21 per cent in ANP to US$839 million in the third quarter. VONB margin improved by 2.1 percentage points to 44.7 per cent compared with 42.6 per cent in the third quarter of 2012. Margin expansion was achieved mainly through a positive improvement in product mix.

AIA’s proprietary agency channel accounted for 71 per cent of VONB in the third quarter and was a key driver of the overall VONB growth. The successful delivery of the Premier Agency strategy continued with growth in both the number of active agents and agent productivity in the third quarter. AIA continued to review its agency compensation structure in Thailand, as previously highlighted in the interim results announcement. Partnership distribution also reported solid growth, benefiting from strong banc assurance and group insurance results and the ongoing restructuring of the direct marketing channel in Korea.

TWPI increased by 14 per cent to US$4,409 million, compared with the third quarter of 2012.

Outlook

Macroeconomic fundamentals in Asia remain robust. Debate over the timing of supportive US monetary policy caused capital market volatility in the third quarter and tested those countries running current account deficits. Asian central banks responded appropriately, as they have the ability and resolve to continue to respond proactively to global liquidity challenges. The larger Asian economies continue to benefit from rebalancing toward domestic sources of growth, while more trade-dependent economies should benefit from a pick-up in global trade emanating from a more positive economic outlook in China and Japan.

Demographic drivers remain strong and AIA is confident in the immense growth potential for life insurance in Asia. The substantial upside from low insurance penetration, rapid urbanisation, increasing household incomes and the opportunity to reduce the substantial savings and protection gaps across the region will continue to provide AIA with significant growth opportunities. AIA’s strong performance since the IPO in 2010 demonstrates the success of its strategy and its advantaged position in the region. It is exceptionally well-positioned to benefit from the expanding demand for its products and services to create sustainable value for shareholders.

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Peter Crewe

Life insurance specialist AIA Australia has been named ‘Life Insurance Company of the Year’ at the 10th Annual Australian Insurance Industry Awards – the second in as many years.

In front of over 800 industry leaders, Government and association representatives, AIA Australia won the ‘Life Insurance Company of the Year’ category, ahead of fellow finalists BT Financial Group and MLC/NAB Wealth. Hosted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF), the awards honor the achievements of companies and individuals within the Australian insurance market.

A panel of 16 industry experts—all leaders in their field – named AIA Australia the winner of this award for its responsiveness to customer needs, financial strength, innovative approach to technology and demonstrated effort to improve the image of the industry for customers and intermediaries in Australia.

Commenting on the win Peter Crewe, Chief Executive Officer, AIA Australia said he was honored to be recognised for a second consecutive year among the industry’s finest, and attributed the award to AIA Australia’s commitment to building long term and highly valued partnerships with its clients and customers.

“I am proud of the team at AIA Australia for their efforts and contributions which have led to this award. To win in consecutive years demonstrates that we continue to be successful in building trusted business partnerships that deliver the market leading products and services in an environment of significant industry change”, Mr. Crewe said.

AIA Australia’s performance has continued to be strong over the last 12 months. Recent Plan for Life figures  (Y/E 30 March 2013) show that retail in-force business has grown by more than double the market rate (23% for AIA compared to broader retail market growth  of 10%). On the Group front, AIA Australia remains number one for market share, with just short of 25 per cent of Group Risk Premium Inflows.[1]

The ANZIIF award is the latest of a long list of achievements for Australia’s fastest growing life insurer, which in the last 12 months also won the 2012 Smart Investor Life Insurer of the Year, 2012 ANZIIF Life Company of the Year and the 2011 Super Review/ Heron Partnership Group Insurer of the Year awards.

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[1] 24.68 per cent Market Share for AIA Australia, Group Risk Premium Inflows as at Y/E March 2013, Plan for Life statistics.

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