友邦保險將銷售擴展至中國 10 個省市，押注 2.26 億中產階級客戶增長

Recently Yahoo News on-line reported the following:

AIA to expand its insurance sales to 10 Chinese cities and provinces, betting on 226 million middle-class customers for growth

Georgina Lee

South China Morning Post

Tue., August 17, 2021, 1:11 a.m.

AIA, the largest insurer in Hong Kong by capitalization, is planning to expand in mainland China to capture the growth opportunity of a region that contributes to the lion’s share of its operating profit.

The insurer, which traces its roots to 1919 in Shanghai, is awaiting regulatory approvals to expand to 10 more provinces and municipalities in mainland China, with the potential to serve 226 million potential customers with income levels defined as “middle class,” executives said.

The plan shows how China, the first major global economy to emerge from Covid-19 lockdowns, underpins AIA’s corporate earnings as it looks for growth. The new delta strain of the coronavirus disease had been identified in China, resulting in new confirmed cases in Jiangsu and Henan provinces in recent days. Even so, AIA remained confident that China’s near-term growth outlook remained positive, said its regional chief executive Jacky Chan during a media call in Hong Kong.

“We believe that Covid would remain under control in China,” he said. “We saw that our digital sales and our online engagement in China have been well-received (throughout) the pandemic.”

AIA’s first-half net profit rose 47 per cent to US$3.2 billion, beating the analyst estimates in a Bloomberg poll. Sales increased 23 per cent to US$24.2 billion.

New business grew 22 per cent to US$1.8 billion, in stark contrast to the 37 per cent decline a year ago. All 18 markets that AIA operates in, except Hong Kong, said new businesses grew at a faster pace in the first half than pre-pandemic levels. In mainland China, the biggest earnings driver, new business value grew 15 per cent to US$738 million from last year.

AIA raised its interim dividend by 8.6 per cent to 38 Hong Kong cents. The company’s shares rose before interim results were announced, closing 3 per cent higher amid a declining market to HK$96.95.

AIA sells life insurance policies in Beijing, Shanghai, Shenzhen, Tianjin, Shijiazhuang and throughout the provincial powerhouses of Guangdong and Jiangsu. It launched its Sichuan branch in March and received the regulator’s approval to open another one in Hubei province.

AIA raised US$20.5 billion in Hong Kong in 2010, in what still counts as the world’s sixth-largest initial public offering (IPO). The city remains AIA’s biggest single contributor of operating profit, increasing in value by 5 per cent in the first half.

 “We have been in Hong Kong for over 90 years, so we remain very committed to the Hong Kong market [particularly in light of its] integration into the Greater Bay Area (GBA),” said group chief executive and president Lee Yuan Siong.

 The GBA, a cluster of 11 cities in southern China including Hong Kong and Macau, has a combined economy of US$1.75 trillion and a population of 70 million people.

Hong Kong’s insurance used to get a lift from mainland Chinese visitors, who were driven by the dearth of investible options to flock to the city to park their assets. Those numbers have dwindled, as mainland Chinese visitors stayed away during Hong Kong’s 2019 street protests, and during the travel lockdowns to contain the coronavirus pandemic. Excluding sales to Chinese visitors, new business value rose 16 per cent, to US$313 million in Hong Kong.

Commenting on the impending introduction of the anti-sanctions law in Hong Kong, company executives said they remained confident that the incorporation of the new law into the city’s mini constitution would not cause “material change” to their businesses.

The standing committee of the National People’s Congress, China’s top legislative body, is expected to adopt the law into the mini constitutions of Hong Kong and Macau at its next four-day meeting beginning on Tuesday, bringing them in line with mainland law.

“We are confident that we are operating fully in compliance with all the rules applicable to the group,” said AIA general counsel Mitch New.

Translation

友邦保險(AIA)是香港市值最大的保險公司，正計劃在中國大陸擴張，以抓住該地區的增長機會，該地區佔其營業利潤的最大份額。

友邦高管們表示，這家保險公司的歷史可以追溯到 1919 年的上海，目前正在等待監管部門的批准，將業務擴展到中國大陸的另外 10 個省市，有可能為 2.26 億收入水平被定義為“中產階級”的潛在客戶提供服務。

該計劃顯示了中國作為第一個擺脫 Covid-19 封鎖的全球主要經濟體，如何在 AIA 尋求增長的過程中, 支撐其企業盈利。中國已經發現了新的冠狀病毒病 Delta 株，導致最近幾天江蘇和河南省出現了新的確診病例。即便如此，其區域首席執行官Jacky Chan在香港的媒體電話會議上表示, 友邦保險仍然相信中國的近期增長前景仍然樂觀。

他說：“我們相信，新冠病毒在中國仍將受到控制”; “可以看到我們的銷售數字, 和我們在中國的行動, 在整個病毒大流行中都受到了好評。”

友邦保險上半年淨利潤增長 47% 至 32 億美元，超出彭博調查分析師的預期。銷售額增長了 23%達到 242 億美元。

新業務增長 22% 至 18 億美元，與一年前下降 37% 形成鮮明對比。友邦保險經營的所有 18 個市場（香港除外）均表示，上半年新業務的增長速度高於病毒大流行前的水平。中國大陸是最大的盈利驅動因素，其新業務價值比去年增長 15% 至 7.38 億美元。

友邦保險將中期股息上調 8.6% 至 38 港仙。該公司股價在中期業績公佈前上漲，在跌市情況下仍高收3%至 96.95 港元。

友邦保險向在北京、上海、深圳、天津、石家莊, 以及廣東和江蘇省內高成就者銷售人壽保險單。它於 3 月開設了四川分公司，並獲得監管機構批准在湖北省開設另一家分公司。

在2010 年，友邦保險在香港籌集了 205 億美元，至今仍是全球第六大首次公開募股 (IPO)。該市仍然是友邦保險營業利潤的最大單一貢獻者，上半年價值增長了 5%。

友邦保險集團首席執行官兼總裁李源祥示：“我們在香港已有 90 多年的歷史，因此我們仍然非常致力於香港市場（尤其是考慮到）融入大灣區（GBA）。”

大灣區是由包括香港和澳門在內的華南 11 個城市所組成，經濟總量達 1.75 萬億美元，人口達 7000 萬。

香港的保險過去常常受到中國大陸遊客的寵愛，他們因缺乏可投資的選擇而湧入香港存放資產。由於中國大陸遊客回避 2019 年香港街頭抗議, 以及為遏制冠狀病毒大流行而實施的旅行封鎖，遊客數字已經減少。不包括對中國遊客的銷售額，香港的新業務價值增長了 16%，達到 3.13 億美元。

在評論即將在香港實施反制裁法時，公司高管表示，他們仍然相信將新法律納入該市的小型憲法不會對其業務造成“重大變化”。

中國最高立法機構全國人民代表大會常務委員會預計將在周二開始的下一次為期四天的會議上將該法律納入香港和澳門的微型憲法，使其​​與大陸法律保持一致。

友邦保險法律總顧問 Mitch New 表示：“我們相信，我們的運營完全遵守所有適用於集團的法規。”

              So, AIA, the largest insurer in Hong Kong by capitalisation, is planning to expand in mainland China to capture the growth opportunity of a region that contributes to the lion’s share of its operating profit. I am wondering why AIA could attract customers in China as there are also local insurance companies competing for business.

Note: Lee Yuan Siong (李源祥) before joining AIA was an executive director of Ping An Insurance (Group) Company of China, Ltd. During his more than 15 years with Ping An, he held several senior management positions including Chairman and CEO of Ping An Life.