Insurers Stepping into the Spotlight

Insurers might not be the life of the party typically, but in Hong Kong, heavyweights like AIA, Prudential, and FWD are changing that narrative. These companies recorded impressive double-digit growth in new business during the first half of 2025, signaling a robust resurgence in demand as Chinese mainlanders increasingly seek better investment opportunities across the border.

Staggering Growth Figures!

AIA, the colossal $98 billion insurance giant, amazed the market by reporting its value of new business reached $1.1 billion from January to June—an astounding 24% increase compared to last year. Prudential also shined, with a 16% uptick to $540 million, while Richard Li’s FWD brand nearly doubled its figure to $267 million during the same period! These performances not only reflect strong recovery but also edge past pre-pandemic results for AIA, putting Prudential in a race to catch up.

Recovering Markets and New Opportunities

It’s been over five years since the pandemic disrupted the industry, particularly affecting sales driven by in-person visits from mainland clients. Despite this, more than 17.8 million visitors flocked to Hong Kong in the first half of the year, though that number is still below the over 50 million who visited in 2018. Fortunately, the market is expanding as over 100,000 professionals have moved to Hong Kong since January 2024, bolstering local sales.

More Attractive Products and Higher Investments!

Hong Kong's insurance products are proving more appealing than ever. With China’s one-year loan prime rate at a mere 3% and ongoing issues in the property market, savers are turning their eyes toward more lucrative options. Hong Kong insurers, for example, can provide returns up to 6.5% on specific long-term plans! Additionally, AIA noted that the average policy size for its mainland clients has surged to $20,000 this year, nearly double pre-pandemic levels.

Market Performance: A Look at the Numbers

Since the beginning of the year, Prudential and AIA’s Hong Kong shares surged by 66% and 29%, respectively, outperforming the Hang Seng index, which climbed by 27%. Despite this triumph, both stocks have yet to reach their end-of-2019 values. Meanwhile, FWD, which debuted on the stock exchange in August, has seen its shares rise at nearly twice the rate of the benchmark, showcasing the favorable valuation of its offering.

Insurers' Comeback: A Party in Full Swing!

The road to recovery for these insurers may be winding, but things are finally heating up, signaling a promising future in Hong Kong’s insurance market!