Hong Kong-based AIA Group has agreed to purchase a stake in China Post Life Insurance, adding to its portfolio of holdings in mainland insurers.
AIA will buy a 24.99 percent stake in China Post Life for about $1.9 billion, according to a filing to the Hong Kong exchange yesterday, representing 1.34 times the Chinese insurer’s book value on a pre-money basis as of 2020-end.
China Post Life is a subsidiary of China Post Group and bank-affiliated life insurer focused on China's mass affluent market. It has over 600 million retail customers and access to a retail distribution network of around 40,000 financial outlets in China.
China Expansion
This marks the second Asian deal for AIA this year after it agreed to buy Bank of East Asia’s life insurance arm in March.
Acquisitions aside, it also won regulatory approval this month to set up a new branch in the Hubei province with plans to expand to two new regions in China a year.
