[ET Net News Agency, 18 November 2019] Daiwa Research lifted its target price for AIA
Group (01299) to HK$97 from HK$95 and maintained its "buy" rating.
Despite rising competition and industry-wide price cuts in critical illness products in
China's life insurance industry, AIA has remained largely disciplined in its pricing and
highlighted its unique agency team as its biggest advantage and that it can afford not to
engage in a price war but still deliver much higher VNB growth than domestic peers, said
the research house.
Daiwa added that AIA sells only life insurance and hence its agents' skills and
incentives are fully aligned with VNB (value of new business) creation. (KL)