HONG KONG: AIA Group has agreed to buy a 24.99 per cent equity stake in China Post Life Insurance for 12 billion yuan (US$1.86 billion), the Asia-focused insurer said in a stock exchange filing on Tuesday (Jun 29).
AIA said its wholly owned Chinese life insurance business would remain independent of this investment which would increase its exposure to the Chinese life insurance market.
China Post Life is a subsidiary of China’s postal service operator, China Post Group and targets Chinese mass market consumers selling its products via banks.
Its value of new business, which measures expected profits from new premiums and is an important gauge of future growth, was 1.866 billion yuan (US$289.11 million) for 2020.
AIA’s China operations, which targets middle-class and affluent customers had a value of new business of US$968 million for 2020, and accounted for 32 per cent of the AIA Group’s total.
Source: Reuters
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