Research Ideas

AIA Group Ltd (1299 HK) Executing on its China roadmap

• Proposal to invest USD1.86bn to acquire a 24.99% stake in China Post Life extends its mass market reach. Transaction is pending regulatory approvals and will be funded by internal resources.

• Recent addition of a Hubei branch license & latest China Post Life investment plan adds positively to its medium term China growth story.

• Remains our preferred Asia insurance sector pick, where we continue to expect a gradual recovery from pandemic disruptions across Asia while firmer growth expectations in China should drive the group’s new business value growth over the medium term as it expands towards its target of 12 new regions by 2030E.