AIA Group Limited logo is displayed on an observation wheel in Hong Kong, Nov 18, 2021. (PHOTO / AP)

AIA Group reported a 33 percent jump in its annual value of new business on Thursday as the company benefited from strong demand for its insurance products in Hong Kong.

The Asia-focused insurer benefited from a surge in customers from the Chinese mainland who travelled to buy offshore products as they look to capitalize on potentially lower premiums and higher returns in the Hong Kong Special Administrative Region.

On a constant exchange rate basis, AIA's VONB, which gauges expected profits from new premiums and is a key barometer for future growth

Mainland tourists spent HK$59 billion ($7.54 billion) on insurance policies in Hong Kong last year, according to data from the territory's Insurance Authority.

READ MORE: Manulife sees growth potential for insurance sector in GBA

On a constant exchange rate basis, AIA's VONB, which gauges expected profits from new premiums and is a key barometer for future growth, rose to $4.03 billion for the year ended Dec 31, from $3.09 billion a year earlier.

Hong Kong, one of AIA's largest contributor in terms of profits for 2023, reported an 82 percent annual increase in VONB.

VONB in partnership distribution channel in Hong Kong more than tripled compared with the prior year, the company said.

The company's full-year operating profit after tax rose 2 percent to $6.21 billion.

READ MORE: Manulife emerges as new leadership force in HK insurance

AIA declared a final dividend of HK$1.19 per share, compared to a final divided of HK$1.13 declared last year.