＜Research＞JPM: AIA (01299.HK)'s Tata AIA Subsidiary Excavates Potential Value in India Life Insurance Mkt

　　JPMorgan commented that it believed Tata AIA, a subsidiary of AIA (01299.HK) +0.150 (+0.285%) Short selling $424.62M; Ratio 19.715% , has significant potential for profit expansion. The broker assumed Tata AIA's annual premium equivalent (APE) would grow by 15% YoY in FY24 and 30% YoY from FY25 to FY30. Based on AIA's current stake in Tata AIA, the subsidiary would contribute 12% to the group's new business value (NBV) in FY30.

　　JPM also noted that if the Indian government allowed a composite licence regime, local life insurers would be able to add more riders to their primary policies, and the associated factors would be a key catalyst for AIA's share price. The broker also expected Tata AIA to generate NBV margins of around 25% in FY23 and an NBV size of US$300 million to US$400 million by FY25. With AIA's 49% stake, it will contribute between 4% and 7% of the group's NBV.

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　　Taking into account the above factors, JPM gave AIA a target price of HK$92 and rated it Overweight.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 16:25.)

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