Haitong Securities International·2025-05-26 15:38Investment Rating - The report initiates coverage with an OUTPERFORM rating, setting a target price of HK$97.80, which represents a potential upside from the current price of HK$64.85 [2][3]. Core Insights - AIA Group is recognized as the largest independent listed life insurance group in the Pan-Asian region, with strengths in elite agent models, rapidly growing partner distribution channels, multi-regional presence, high-quality customer and product structure, and robust profitability [3][8]. - The company has shown strong growth momentum in its core markets, particularly in mainland China and Hong Kong, with a focus on high-end products and services [5][49]. Company Overview - AIA Group operates in 18 markets across Asia-Pacific, with total assets reaching US$305 billion and a net operating profit of US$6.605 billion for 2024, reflecting a year-on-year growth of 6.3% [9][10]. - The new business value for 2024 was US$4.712 billion, up 18% year-on-year, with a value rate of 54.5% [9]. Product Analysis - AIA offers a diverse product portfolio covering various insurance needs, including accident, medical, disease, life, retirement, and wealth management products, with a strong emphasis on high-end market segments [15][18]. - The traditional protection products remain the core of AIA's offerings, contributing 39% to the new business value in 2024, with a stable profit margin [18][20]. Channel Analysis - The agent channel is the primary source of new business value, contributing 74% in 2024, with a year-on-year growth of 16% [24][25]. - AIA's partner distribution channels, including bancassurance, have seen significant growth, with a 28% increase in new business value in 2024 [32][31]. Regional Layout - AIA's expansion strategy in mainland China includes opening 1-2 new provincial branches annually, targeting high-net-worth clients through elite agents and strategic partnerships [43][38]. - The Hong Kong market has shown strong growth, with new business value increasing by 23% in 2024, driven by both local demand and visitors from mainland China [49][50].