AIA acquires a 25% stake in China Post Life Insurance

AIA is investing around $1.86 billion for a 24.99% equity stake in China Post Life Insurance . The total value of the proposed investment represents a valuation of 1.34x China Post Life book value.

China is one of the largest life insurance markets globally where AIA China has a business unit focused on providing protection and long-term savings products to the middle-class and affluent customer segments through its Premier Agency model.

AIA’s investment in China Post Life will allow it to capture the value available from distribution channels and customer segments that are complementary to its existing strategy in China. The Group’s operations of AIA China will remain entirely independent of this investment.

China Post Life is a subsidiary of China Post and is a bank-affiliated life insurer focused on the mass and emerging mass-affluent market in China. Through its distribution partnership with Postal Savings Bank of China (“PSBC”), it has access to the largest retail financial distribution network of around 40,000 financial outlets nationwide and more than 600 million retail customers. China Post Life currently distributes in 21 provinces, covering 80% of the PSBC network.

AIA and China Post have also entered into a Business Cooperation Framework Agreement to explore additional business opportunities.