[ET Net News Agency, 23 June 2020] S&P Global Ratings believes AIA Group Ltd.'s (01299)
conversion of its Shanghai branch into a wholly owned life insurance subsidiary in
mainland China will expedite the group's business expansion in the market.
The credit rating agency expects the China operations to continue to be a key
contributor to AIA group's value of new business, accounting for 26% of the total in 2019
and 18% of operating profit. The China subsidiary will allow AIA (A/Positive/A-1; core
operating subsidiaries rated local currency: AA-/Stable/--) to expand its footprint across
all territories in the country, subject to regulatory approval at the territories level.
Including Tianjin and Shijiazhuang, where the group received approvals in 2019, AIA has
operations in seven territories in China.
On 19 June 2020, AIA Co. Ltd., a core operating company of AIA group, received approval
from the China Banking and Insurance Regulatory Commission to convert its Shanghai branch
into a wholly owned subsidiary. This new subsidiary will be the first regulator-approved
wholly foreign-owned life insurance company in China. (KL)