INCREASE IN EMBEDDED VALUE, VALUE OF NEW BUSINESS REFLECTS ASIAN ECONOMIC RECOVERY - STUDY

KUALA LUMPUR, July 23 (Bernama) -- Milliman, a premier global consulting and actuarial firm in its latest report revealed that embedded value (EV) and value of new business (VNB) increased across most Asian markets last year.

This is according to its 2023 embedded value results: Asia report which examines the EV and VNB results disclosed by major multinational and domestic life insurers across Asia Pacific.

According to a statement, the report also analyses and discusses the EV methodologies and assumptions used, and the impact of changes to key regulations in the region.

Milliman Principal and Consulting Actuary, Heerak Basu said an overall increase in EV and VNB across the region in 2023 reflects the bounce back of many economies.

“With the easing of Covid restrictions and the return of Mainland Chinese visitors, Hong Kong’s VNB more than doubled, while India, Japan and Taiwan showed double-digit EV growth in 2023,” he said.

Among key insights from the report stated that the majority of insurers in Asia reported EV growth in 2023, with increases ranging from one per cent to 24.1 per cent.

In line with global trends, bond yields decreased during 2023 in most of the Asian markets, which led Chinese insurers to decrease their investment return and discount rate assumptions for that year, with mixed responses in other markets.

Furthermore, the report found that VNB experienced an overall growth of 9.9 per cent in the Asia region, with double-digit growth in Indonesia and Thailand and 102.8 per cent growth in Hong Kong.

Founded in 1947, Milliman has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, as well as employee benefits.

-- BERNAMA