JP Morgan believes that Tata AIA under AIA insurance (01299) has huge potential for profit expansion.
Smart Financial News APP learned that JPMorgan released a research report stating that it has a "shareholding" rating for AIA insurance (01299) and believes that its subsidiary Tata AIA has huge potential for profit expansion, and set a target price of HKD 92. Assuming that Tata AIA's annualized new premium (APE) growth rate in the 2024 fiscal year increased by 15% year-on-year and APE increased by 30% year-on-year from 2025 to 2023. Based on AIA's current shareholding in Tata AIA, it will contribute 12% to the group's new business value (NBV) in the 2030 fiscal year.
JP Morgan also pointed out that if the Indian government allows composite licensing system, local life insurance companies will be able to add more supplementary insurance to major policies, and related factors will be the key catalyst for AIA's share price. The bank also expects that Tata AIA's NBV profit margin in the 2023 fiscal year will be about 25%, and the NBV scale in the 2025 fiscal year will reach USD 0.3 billion to USD 0.4 billion. Under AIA's 49% shareholding, it will contribute 4% to 7% of the group's NBV.