AIA Group 1299 02 (Jun 20 - Dec 27)

[winston]

not vested

AIA (01299.HK) Opens 1.94% Higher, CLSA: 1Q VONB Beats Expectations

CLSA published a research report stating that AIA's Value of New Business (VONB) in 1Q increased 13% YoY (at constant exchange rates) and 17% YoY (at actual exchange rates), both 4% above market expectations.

During the period, Annualized New Premium (ANP) recorded strong growth of 20% (at actual exchange rates), while VONB margin edged down 1.5 ppts to 56%.

Related News: AIA (01299.HK) 1Q26 Value of New Business USD1.757B Beats; Up 17% YoY at Actual FX, Up 13% at Constant FX

The broker noted that AIA Hong Kong and AIA China both achieved outstanding VONB growth of over 20% in 1Q.

Among them, AIA China's VONB rose 26%, driven by strong demand for long-term savings products, while VONB from protection products also increased 17%.

AIA Hong Kong's VONB grew 21%.

Despite overall weakness in the industry broker channel, AIA Hong Kong still recorded YoY and QoQ growth in VONB, and its performance should outperform peers.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research> UBS: AIA (01299.HK) Mainland Visitor Business Differs from Cross-border Securities Trading; Reiterates Buy Rating

UBS issued a research report noting that, as cross-border securities trading regulations tighten, some investors are concerned about regulatory risks related to Hong Kong mainland visitor (MCV) insurance business, which contributed 51% of AIA Hong Kong's value of new business (VNB) in 2025 (or 20% of AIA Groups VNB).

AIA (01299.HK) stated that the mainland visitor insurance business has operated under a well-established framework since 2004, with the core requirement being physical presence (i.e., purchases must be conducted within Hong Kong).

In addition, AIA emphasized policy direction toward integration into the Greater Bay Area, such as establishing insurance service centers in the region.

UBS believes these comments are consistent with its previous views, adding that the core demand drivers for Hong Kong insurance among mainland visitors include higher expected returns (6% to 6.5%, compared with around 3.5% in mainland China) and access to a broader range of investment options.

The bank further noted that, in terms of competitive landscape, AIA Insurance's market share by annualized new premium (ANP) declined by 3.3 ppts to 12% between 2023 and 2025, mainly due to certain companies significantly expanding their broker channels and bancassurance players being able to reach mainland visitors earlier in the customer journey (i.e., at the bank account opening stage).

AIA Insurance adopts a disciplined approach to channel distribution and prioritizes value creation, with market share not serving as its key performance indicator (KPI).

Amid the deposit migration trend in mainland China, AIA Insurance remains focused on long-term protection and savings products rather than short-term deposit-substitute offerings.

On regional expansion, the company previously guided that regions newly entered since 2019 (such as Sichuan Province) could achieve a compound annual growth rate of 40% in VNB between 2025 and 2030.

UBS currently maintains a Buy rating on AIA, with a 12-month TP of HKD104.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN