By Clarence Leong
AIA Group Ltd. is investing $1.86 billion in China Post Life Insurance Co. to acquire a 24.99% stake and increase its exposure to the Chinese life insurance market.
Wholly owned unit AIA Co. will acquire the stake in China Post Life. The deal is subject to regulatory approvals, AIA said Tuesday. The all-cash investment will be financed from AIA's internal resources.
China Post Life, a unit of China Post Group Co., has a distribution partnership with Postal Savings Bank of China Co. and access to a network of around 40,000 financial outlets and more than 600 million retail customers in China, AIA said.
As part of the deal, AIA will have the right to nominate one nonexecutive director to China Post Life's board of directors. The companies will explore further business opportunities.
AIA said its life-insurance unit in China--AIA Life Insurance Co.--will remain independent from the latest investment.
China Post Life's value of new business was 1.87 billion yuan ($289.6 million) in 2020.
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(END) Dow Jones Newswires
June 29, 2021 05:57 ET (09:57 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.