Bank of America Securities released a research report stating that it maintains AIA's (01299) “buy” rating, with a target price of HK$92.2.
The bank expects the value margin of AIA China's new business under AIA Insurance to reach 56% in 2024 and 55% in 2025, up from 51% in 2023. In addition to benefiting from lower banking insurance fees and guaranteed interest rates, the bank believes that AIA China's strong growth in pension insurance sales is the main driving force.
According to the report, according to domestic media reports, AIA China's premium income for the first year of pensions from January to October 2024 exceeded 2.4 billion yuan, ranking first in the industry. Although AIA China is a boutique insurance company, its sales ranking may not last long compared to Chinese insurance companies with larger agency teams. However, the bank believes that AIA can maintain competitiveness among high-end customers, and pension products can drive the value growth of its new business in 2025.
