(Yicai) March 15 -- The demand for insurance products from middle-class families in China is huge, according to the chief executive officer and president of multinational insurance giant AIA Group.

“I am very optimistic about the development of China’s insurance market, as the demand for insurance and long-term insurance and savings products from Chinese middle-class families is huge,” Li Yuanxiang told Yicai in a conference call.

AIA Life Insurance, AIA’s unit in the Chinese mainland, increased the total value of business revenue from new products by 20 percent last year compared to the previous one, while that from its new bancassurance products more than tripled.

“This growth momentum is very strong, and we are confident that we can continue it this year,” Li noted.

AIA yesterday released its annual earnings report for 2023 yesterday. Its net profit widened 13 percent to USD3.8 billion and revenue rose 7 percent to USD38 billion last year from the year before.

AIA Life logged a very strong performance last year. Its annualized premiums from new products soared 62 percent in the period, with a premium business income of CNY60.8 billion (USD8.5 billion), up over 19 percent. The unit achieved a net profit of CNY4.3 billion (USD598 million).

The business revenue from new products at AIA Hong Kong rose 82 percent to USD1.4 billion last year from the previous one, thanks to the return of visitors from the Chinese mainland after the border reopening in February and an increase in local customers.

AIA invested CNY12 billion in bank-affiliate life insurer China Post Life for a 25 percent stake in 2022. Since then, AIA has made significant investments in the Chinese firm, helping it quadruple its business revenue from new products last year from 2020. AIA expects China Post Insurance to maintain strong growth.

Editor: Futura Costaglione