Milliman study: Protection-oriented product strategies lead to continued embedded value growth for life insurers in Asia, despite challenges

Milliman, Inc.
2019-09-18 10:00 1373

HONG KONG, Sept. 18, 2019 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today announced the findings of its annual study on reported year-end 2018 embedded value (EV) and value of new business (VNB) results for 52 major multinational and domestic life insurers across Asia. The report highlights trends in published EV results, including a total growth in reported EV in 2018 of 5.3% to USD 756 billion and a VNB growth of 1.5%. The Milliman 2018 Embedded Value Results: Asia report provides in-depth analysis of the EV methodologies and assumptions adopted, as well as the impact of key regulations and other market developments in the region. This year's edition includes the Japanese market, which was previously excluded from the Asia report and included as part Milliman's Europe report.

"As yield curves remain at historically low levels throughout Asia, it is the companies that have successfully transitioned away from the traditional guaranteed long-term savings products that have typically reported the highest growth in EV and VNB," said Milliman principal and consulting actuary Paul Sinnott. "This has been significant in both China and India, markets that lead EV growth in Asia, primarily as a result of companies selling more protection-oriented business. Several companies in South East Asia also improved results through enhancing distribution channels' productivity. Unfavourable interest rate movements led to a decrease in EV and VNB results in a few countries."

A copy of the report detailing these and other pertinent trends is available for download on

A few key insights from the Asia report include:

  • China and India continue to report the highest EV growth in the Asia region. The regulatory clampdown on the sale of high-guarantee short-medium term universal life products in China last year had very little effect on results given their lack of profitability, while the increased focus on protection business has helped drive positive EV growth.
  • Total reported VNB for Asia stood at USD 52.6 billion in 2018, compared with USD 51.8 billion in 2017, representing a growth of 1.5%.
  • At 22% India produced the highest VNB growth, on a constant currency basis, across Asia in 2018 mainly as a result of companies' continued focus on writing profitable protection business.
  • Hong Kong(China), Taiwan(China) and Malaysia reported the highest new business margin growth of 7%, 5% and 4%, respectively, in 2018.

About Milliman
Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe including multiple offices in Asia & the Middle East. For further information, visit

Source: Milliman, Inc.
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