Core Viewpoint - AIA Group is accelerating its expansion in the mainland China market, recognizing it as a crucial area with significant potential for growth [2][3]. Group 1: Market Potential and Expansion Strategy - Mainland China is identified as the most important market for AIA, with a substantial growth potential. Since 2019, AIA has added nine new regions, now operating in 14 areas [3]. - AIA's new business value in mainland China reached USD 743 million in the first half of 2025, with post-tax operating profit at USD 873 million, ranking second among AIA's market segments [2]. - The company aims for a compound annual growth rate (CAGR) of 40% for new business value from new regions between 2025 and 2030, driven by low insurance penetration and a strong agent network [3][8]. Group 2: Investment in Subsidiaries and Asset Management - AIA has made significant investments in China Post Insurance, becoming its second-largest shareholder with an investment of RMB 12.033 billion in 2022 [5]. - The registered capital of China Post Insurance increased to RMB 32.643 billion, making it the fourth-largest in the life insurance industry [5]. - AIA is establishing an asset management company to enhance investment strategies, aiming to professionalize asset allocation and collaborate with third-party investment institutions [6]. Group 3: New Institutional Development - AIA Life has launched a new institutional acceleration plan, opening new provincial branches in Anhui, Shandong, Chongqing, and Zhejiang, increasing the number of new institutions to nine since 2019 [8]. - The company has set a target of a 40% CAGR for new institutions over five years, supported by a solid business model and advanced technology [8][9]. - The active growth of new agents and supervisors is seen as a key factor for sustainable growth, with a reported 11% increase in active new agents and a 71% increase in new supervisors [9]. Group 4: Product Strategy in Low-Interest Environment - AIA is adapting to the low-interest-rate environment by managing interest rate risks and adjusting product structures to lower liability costs [10]. - The company emphasizes the importance of dividend insurance as a strategy to reduce interest rate sensitivity and provide better returns for clients [10][11]. - As of Q2 2025, 43% of new business value from the agent channel came from traditional protection products, 41% from dividend insurance, and 14% from tax-advantaged products [10].

Core Insights - AIA Group reported a new business value of $2.838 billion for the first half of 2025, representing a 14% year-on-year increase, with a new business value margin rising by 3.4 percentage points to 57.7% [2][4] - In mainland China, AIA's new business value reached $743 million, showing a 10% growth before accounting for economic assumption changes, with a second-quarter acceleration to 15% year-on-year growth [5][6] - AIA plans to expand into one to two new regions in mainland China annually, capitalizing on significant growth potential in early-stage markets [6][7] Financial Performance - AIA's after-tax operating profit for the first half of 2025 was approximately $3.609 billion, with earnings per share increasing by 12% [2] - The new business value in the Hong Kong market was $1.063 billion, marking a 24% increase, while Thailand's market saw a 35% growth to $522 million [4][5] Market Expansion Strategy - AIA's new regions contributed to a 36% year-on-year increase in new business value since 2019, with a compound annual growth rate exceeding 40% over the past three years [6][7] - The company has established a team of over 1,700 new agents in newly opened regions, targeting a customer base of 100 million [6] Product Strategy - AIA is shifting its investment management to a dedicated asset management company, AIA Asset Management, set to launch by the end of this year [3][9] - The company is optimizing its product structure, with 87% of new business value from long-term savings products coming from participating products, which provide higher expected long-term returns [8][10]

Core Viewpoint - AIA's subsidiary, AIA Life, has demonstrated strong growth in the Chinese insurance market, with several key operational indicators showing steady improvement in the first half of 2025 [1][2]. Group 1: Financial Performance - AIA Life achieved insurance business revenue of RMB 49.708 billion in the first half of 2025, representing a year-on-year growth of 14.1% [2]. - The new business value for the first half of 2025 was USD 743 million, with a 10% increase before accounting for economic assumption changes, and a 15% growth in the second quarter [2]. - The new business value margin was 58.6%, an increase of 2 percentage points year-on-year [2]. - As of the end of the second quarter of 2025, AIA Life's comprehensive solvency adequacy ratio was 410.03%, and the core solvency adequacy ratio was 287.82%, maintaining a AAA risk rating for two consecutive quarters [2]. Group 2: Market Potential - By 2030, the middle class and affluent population in mainland China is expected to exceed 550 million, with a significant increase in the aging population, projected to reach 40% by 2050 [3][5]. - There is a substantial gap in health and pension insurance, with a life insurance protection gap exceeding USD 600 billion and a health insurance protection gap exceeding USD 1.4 trillion by 2024, accounting for 50% of similar gaps across Asia [3][5]. Group 3: Competitive Advantages - AIA Life's marketing agent team is a key competitive advantage, with the average new business value per agent in 2024 being 2.9 times higher than the industry average [8]. - Since 2017, the new business value generated by AIA Life's agents has increased by 60%, while the market has declined by over 40% during the same period [10]. - AIA Life focuses on customer lifetime value with a differentiated product portfolio that meets various life stage needs, with over 90% of agents selling protection policies [11][13]. Group 4: Innovation and Technology - AIA Life has upgraded its "Health You Walk" app to "AIA You Share," transforming it into a comprehensive digital platform for customer interaction, facilitating over 5 million online customer interactions in 2024 [23][25]. - The integration of artificial intelligence in the "AIA You Share" platform has improved customer resource integration and marketing efficiency, achieving a 19% conversion rate for high-intent customer leads [25][30]. Group 5: Strategic Expansion - AIA Life plans to expand into new markets, targeting 1-2 new provinces annually from 2025 to 2030, with a goal of achieving a compound annual growth rate of 40% in new business value in these regions [35]. - The company has established 14 provincial-level institutions and aims to leverage its marketing channels and differentiated bancassurance models to drive growth in new markets [33][35].