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Oct 31 (Reuters) - Hong Kong-based insurer AIA Group 1299.HK reported a record value of new business (VONB) for the third quarter on Thursday, driven by strong demand for products in its key markets, China and Hong Kong.

The results were underpinned by growing demand for AIA's insurance products in Asia amid a high savings rate, low levels of insurance coverage reach, limited welfare policies and an aging population.

The company's China business, one of AIA's largest markets, saw a 9% increase in new business value, underpinned by active agent numbers.

The company, which reported growth in 15 of its 18 markets during the quarter, said it is expanding its Mainland China business and has received approvals for new provincial branches in Anhui and Shandong.

AIA's Hong Kong business posted a 24% growth, driven by strong demand from domestic customers as well as Mainland Chinese visitors for insurance products.

The division benefited from a surge in customers from Mainland China as they look to capitalise on potentially lower premiums and higher returns in Hong Kong when compared with China.

The agency channel of the Hong Kong business delivered its highest quarterly value of new business (VONB) from Mainland Chinese visitors since the complete removal of travel curbs in

February last year, AIA said.

The insurer's VONB, which gauges expected profits from new premiums and is a key barometer for future growth, on a constant exchange rate basis came in at $1.16 billion for the three months ended Sept. 30, compared with $994 million in the prior year.

"Our continued focus on executing our strategic priorities has further enhanced AIA's competitive advantages, supporting double-digit VONB growth from both our agency and partnership distribution channels," CEO Lee Yuan Siong said.

(Reporting by John Biju in Bengaluru; Editing by Alan Barona and Maju Samuel)

((John.Biju@thomsonreuters.com))