AIA acquires US$1.86 billion stake in life insurance arm of China Post Group as it expands presence in the mainland
- Hong Kong’s biggest publicly traded life insurer will buy a 24.99 per cent stake in China Post Life Insurance as it expands its presence in the mainland
- China Post Life has access to a retail distribution network of around 40,000 financial outlets across the country, reaching over 600 million customers
AIA Group has announced plans to acquire a stake in the life insurance arm of the China Post Group for 12 billion yuan (US$1.86 billion) as it continues to expand its presence in mainland China.
“AIA’s investment in China Post Life is highly complementary to our strategy in China and enables the group to capture significant upside from additional distribution channels and customer segments,” said Lee Yuan Siong, group chief executive and president in a statement.
The investment in China Post Life would enable AIA to “capture additional areas of growth and benefit from the substantial potential for value creation,” Lee said.
China Post Life, a subsidiary of China Post Group, is a bank-affiliated life insurer with a focus on the country’s mass-affluent market – people at the high-earning end of the mass market. Through its distribution partnership with the Postal Savings Bank of China, the insurer has access to a retail distribution network of around 40,000 financial outlets across the country, reaching over 600 million customers.