Hong Kong’s multinational insurance and finance corporation AIA Group Limited (AIA) acquired 24.99% stake for $1.86bn in China Post Life, the life insurance arm of the China Post Group as it expands its presence in China, subject to regulatory approval. “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 group chief executive and president, Lee Yuan Siong. The acquisition allows AIA to “capture additional areas of growth and benefit from the substantial potential for value creation,” Lee added.
AIA obtained approval from the China Banking and Insurance Regulatory Commission (CBIRC) on June 22 to commence establishing a new branch in the province of Hubei. Bank of East Asia (BEA) also announced the sale of its life insurance unit to AIA. BEA will receive $653mn in cash from the sale and receive exclusive rights as distributor of AIA’s life insurance and long-term savings products.