Stands to gain most from the US rate hike
- We estimate the increase in US 10-year bond yield spot rate will push up AIA’s long-term investment return curve by 26bps h-o-h and enhances its interest rate sensitivity
- Outperformed most of its insurers/banking peers in previous US rate cycles, and we expect déjà vu
- AIA China to see moderate start in 1Q22F on a high base, while HK and Thailand to see continuous growth from domestic segment and protection product migration
- Revise up FY21/22 VONB growth assumption by 3%-4% to +17%/+15% y-o-y, and lift TP to HK$127. Reiterate BUY