Damo: AIA (01299)'s new business value fell 5% in the third quarter, roughly in line with expectations to maintain an “gain” rating

The Zhitong Finance App learned that Morgan Stanley released a research report saying that AIA Insurance (01299)'s new business value for the third quarter fell 5% to US$1,415 billion at a fixed exchange rate, which was roughly in line with the 4% decline expected by the market, but slightly lower than the bank's forecast of 3%. It maintained an “increase in holdings” rating, with a target price of HK$101.

AIA Insurance's new business annualized premiums fell 13%, but profit margins improved sharply by 5.3 percentage points year over year to 63.3%. The bank mentioned that the high base numbers in mainland China and Hong Kong were the main factors dragging down AIA, while other markets recorded 18% growth. Management is confident in the fourth quarter's performance, with growth accelerating to 25% in September.