AIA buys stake in life arm of China Post Group

AIA Group has announced plans to acquire a stake in the life insurance arm of the China Post Group for USD1.86 billion as it continues to expand its presence in mainland China.

Hong Kong’s biggest publicly traded life insurer will buy a 24.99 percent stake in China Post Life Insurance through its wholly owned subsidiary, AIA Company, subject to regulatory approval, according to a filing.

“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 Lee Yuan Siong, group chief executive and president in a statement to the China Morning Post.

The investment in China Post Life would enable AIA to “capture additional areas of growth and benefit from the substantial potential for value creation,” Lee said.