1299.HK - AIA Group Limited

HKSE - HKSE Delayed price. Currency in HKD
75.350
-0.400 (-0.53%)
At close: 4:08PM HKT
Stock chart is not supported by your current browser
Previous close75.750
Open75.700
Bid75.350 x 0
Ask75.400 x 0
Day's range75.050 - 76.850
52-week range58.200 - 88.500
Volume30,159,169
Avg. volume27,334,708
Market cap910.906B
Beta (3Y monthly)1.04
PE ratio (TTM)36.99
EPS (TTM)2.037
Earnings date19 Aug 2019 - 23 Aug 2019
Forward dividend & yield1.18 (1.57%)
Ex-dividend date2019-09-09
1y target est10.00
  • AIA Can Withstand Hong Kong Visitor Hit
    Bloomberg

    AIA Can Withstand Hong Kong Visitor Hit

    (Bloomberg Opinion) -- Turbulent times should mean good business for insurers as people try to protect themselves against the hazards of an uncertain world. Hong Kong’s summer of unrest has proved anything but happy for shares of AIA Group Ltd., the city’s biggest seller of policies. The company may prove more resilient than investors are giving it credit for.AIA has slumped more than 16% from its July 19 peak, among the worst performers on Hong Kong’s Hang Seng Index in that period. The insurer has the third-highest weighting in the benchmark after HSBC Holdings Plc and Tencent Holdings Ltd., which have both lost less than 9% over the same time frame. AIA’s steepening decline is unusual for a stock that has mostly seen steady gains since it was spun out of American International Group Inc. after the financial crisis in 2010.Blame the Hong Kong protests. Anti-government demonstrations have led to a precipitous fall in mainland Chinese visitors to the semi-autonomous city. These tourists are an important source of business for Hong Kong insurers, whose dollar-based products offer a hedge against the falling yuan and a route outside China’s restrictive capital controls. Chinese tour groups to Hong Kong for the Golden Week holiday starting Oct. 1 are set to plunge 86% from a year earlier, Jinshan Hong and Qian Ye of Bloomberg News reported last week, citing the city’s Travel Industry Council.Policies sold to mainland visitors accounted for 26% of total new premiums received from individuals in the first six months of 2019, according to Hong Kong’s Insurance Authority. While AIA sells insurance across Asia, Hong Kong contributed 40% of its new business value in the first half, Michael Chang of CGS-CIMB Securities Ltd. reckons. Of this, mainland Chinese visitors accounted for 20%, Chang estimates.The physical presence of customers in Hong Kong is important because, unlike most financial assets, the city’s regulators require insurance to be sold face-to-face, at least to new clients. AIA, Prudential Plc and China Taiping Insurance Holdings Co., a state-controlled company based in Shanghai, are among the most reliant on mainland visitors, according to Bloomberg Intelligence analyst Steven Lam.There’s more to AIA’s China exposure than sales made in Hong Kong, though. The company’s new business value in China surged 26% in the first half to account for 29% of AIA’s total. Demand for insurance is surging in the mainland as incomes rise while health and retirement systems remain under-developed.Until recently, AIA had failed to make much headway in a market that’s dominated by state behemoths such as China Life Insurance Co., despite being the only foreign insurer allowed to operate without a partner (thanks to roots that stretch back to 1919, when AIG was founded in Shanghai). That may be starting to change as the government, under pressure from slowing economic growth, opens its financial markets further to overseas companies.This year, the government loosened regulations that restricted AIA to five geographical regions: Beijing, Shanghai, Shenzhen and the provinces of Jiangsu and Guangdong. The insurer has now moved into new provinces and started selling policies in Tianjin municipality and in the city of Shijiazhuang in Hebei province. (German insurer Allianz SE  has been given the green light to set up the first wholly foreign-owned insurance holding company in the country.)In any event, the collapse in Chinese visitors to Hong Kong is likely to ease even if the protests continue. Investment-linked insurance products denominated in the Hong Kong dollar – which is pegged to the greenback – offer a perennial hard-currency allure for mainland individuals with few opportunities to diversify at home. Insurers in the city also sell policies denominated in the U.S. dollar itself. AIA’s new business value in Hong Kong jumped 19% in the first half.The slide in AIA stock has taken its price to embedded value to 1.9 times, from a peak of 2.4 times at the end of June. That’s still a premium to rivals such as Ping An Insurance (Group) Co., at 1.3 times, and China Life at 0.5 times, according to data compiled by Bloomberg. Prudential, weighed down by its exposure to the slower-growing U.K. market, trades at 0.7 times embedded value. Still, 19 of 22 analysts tracked by Bloomberg rate AIA stock a buy, with only one sell recommendation.This slump looks to have limits.        To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • If You Had Bought AIA Group (HKG:1299) Shares Five Years Ago You'd Have Made 85%
    Simply Wall St.

    If You Had Bought AIA Group (HKG:1299) Shares Five Years Ago You'd Have Made 85%

    While AIA Group Limited (HKG:1299) shareholders are probably generally happy, the stock hasn't had particularly good...

  • Be Sure To Check Out AIA Group Limited (HKG:1299) Before It Goes Ex-Dividend
    Simply Wall St.

    Be Sure To Check Out AIA Group Limited (HKG:1299) Before It Goes Ex-Dividend

    Readers hoping to buy AIA Group Limited (HKG:1299) for its dividend will need to make their move shortly, as the stock...

  • How Much Are AIA Group Limited (HKG:1299) Insiders Taking Off The Table?
    Simply Wall St.

    How Much Are AIA Group Limited (HKG:1299) Insiders Taking Off The Table?

    We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...

  • Bloomberg

    The Cable Cowboy Sparks a War in Switzerland

    (Bloomberg Opinion) -- John Malone’s plan to sell Liberty Global Plc’s Swiss operation to Sunrise Communications Group AG has triggered open warfare at the buyer. Sunrise faces two big challenges: Getting the deal done, and stabilizing its shareholder register.Freenet AG, Sunrise’s biggest investor, says the 6.3 billion-franc ($6.4 billion) acquisition is too expensive and doesn’t like the 4.1 billion-franc rights offering arranged to fund it.The German mobile phone company, however, has particular reasons to object. Its high leverage means it probably can’t afford to cough up for the fundraising. If anything, it has an incentive to sell rather than buy Sunrise stock. Whatever Freenet’s motivations, it plans to vote its 25% stake against the rights offering – but the motion only requires simple majority approval to proceed.Sunrise is straining to prevent other investors from taking Freenet’s side. It has accused Freenet’s chief executive officer and chief financial officer, who both sit on its board, of conflicts of interest. It has shut them out of further discussion on the deal, an astonishing move. Meanwhile, it has unearthed further cost savings to help justify the price, which, while no bargain, already seemed justifiable after factoring in the potential gains. But this isn’t the central issue: Sunrise says Freenet’s directors had recently accepted that it would be hard to push for a discount.Sunrise has made reasonable steps to address the main problem: The size of the rights offering. The company has proposed substituting 1 billion francs of the stock sale with a so-called mandatory convertible bond – debt that would turn into equity at a later date when, hopefully, Sunrise’s share price is higher than it is today. This can only be the start.The Zurich-based telecommunications company rightly suggests that it could use more debt to fund the deal. Leverage would be three times Ebitda under the current structure; something closer to four times seems tolerable. That additional step might not be enough for Freenet, but could keep other shareholders onside.There’s a lot at stake. If the transaction falls through, the damage would be worse for Sunrise than Liberty. Malone has better options than renegotiating a fresh sale at a lower price, and isn’t under pressure to raise cash. The Swiss business itself has at least stabilized after is lost subscribers.For Sunrise CEO Olaf Swantee, being shunned by a majority of his investors would leave him in a tight spot. Ambitious CEOs can survive shareholder rebellions: Think of Tidjane Thiam’s aborted tilt at Asian insurer AIA Group Ltd. when he ran Prudential Plc. But a failed deal and a running battle with a financially strained and sizable investor isn’t sustainable.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • HSBC's Biggest Bid in Years Could Get Even Bigger
    Bloomberg

    HSBC's Biggest Bid in Years Could Get Even Bigger

    (Bloomberg Opinion) -- Since getting burned in the financial crisis, HSBC Holdings Plc has been in sell rather than buy mode. But now that it’s out shopping, the bank is looking to splurge. HSBC is eyeing the Asian assets of struggling British insurer Aviva Plc, which could be worth between $3 billion and $4 billion, Bloomberg reporters Dinesh Nair, Manuel Baigorri and Stefania Spezzati wrote Thursday. That would make it one of the bank’s largest purchases since it bought subprime lender Household International for $15.5 billion in 2003.The London-based lender should be prepared to pay even more: Aviva is sure to have many suitors. While the company had a difficult run in Asia, a buyer with more regional presence could better navigate the regulatory hurdles of a fractured market. The bulk of Aviva’s Asian assets are in Singapore, where a large pool of affluent residents has helped gross written premiums rise 13% per year industry-wide, according to Bain & Co. Aviva has 885,000 customers in the Southeast Asian country and was the sixth-largest insurer in Singapore last year – ahead of HSBC. The company accounted for 4.2% of the city-state’s insurance assets in 2018, says Bloomberg Intelligence analyst Steven Lam.A rare, large asset like Aviva is bound to pique the interest of FWD Group Ltd., which Hong Kong billionaire Richard Li built from the ashes of Dutch insurer ING Groep NV’s Asian businesses. FWD, widely believed to be preparing for an initial public offering, has been busy buying assets: Late last year, it snapped up an 80% stake in Commonwealth Bank of Australia’s Indonesian life insurance arm for A$426 million ($302 million). The Japanese, meanwhile, have been avid acquirers of Southeast Asian insurance assets for years, as low growth and negative bond yields at home crimp the savings of its aging population. Just this week, Japan's Taiyo Life Insurance Co. said it will buy 35% of Myanmar's Capital Life Insurance Ltd. Tokio Marine Holdings Inc. bought the Thai and Indonesian businesses of Sydney-based Insurance Australia Group Ltd. for about A$525 million ($355 million) last year, and has been open about its Southeast Asian ambitions.It makes sense that HSBC is eager to jump in: Its chairman, Mark Tucker, is an insurance supremo, having run AIA Group Ltd. and Prudential Plc previously. The recent protests in Hong Kong are pressuring the bank, which gets more than half of its pretax profit from the former British colony, to diversify, as other firms with big bases in the city have done. On Thursday, HSBC broke its silence and called for a peaceful resolution to the tensions in a newspaper ad.With the midpoint of the $3 billion to $4 billion price range amounting to 22 times Aviva's 2018 adjusted operating profit, these jewels aren’t coming cheap. That’s the same level at which AIA, Asia’s biggest insurer, trades. Bidders should prepare for a price war.To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Could AIA Group Limited (HKG:1299) Have The Makings Of Another Dividend Aristocrat?
    Simply Wall St.

    Could AIA Group Limited (HKG:1299) Have The Makings Of Another Dividend Aristocrat?

    Is AIA Group Limited (HKG:1299) a good dividend stock? How can we tell? Dividend paying companies with growing...

  • Reuters - UK Focus

    UPDATE 1-British insurer Aviva looking to sell Asia business - sources

    HONG KONG/LONDON, Aug 1 (Reuters) - British life and general insurer Aviva is looking to sell its Asia business, valuing the unit at more than $2 billion, two sources familiar with the matter told Reuters. Aviva is working with a financial adviser on a possible sale, with a formal process likely to begin in the fourth quarter, the sources said. There is no certainty of a sale, which will depend on the outcome of a review of the Asian business to be completed by the end of this quarter, the sources said.

  • Investing for Retirement? This Asian Insurance Giant Has Grown its Dividend 370% in 8 Years
    Motley Fool

    Investing for Retirement? This Asian Insurance Giant Has Grown its Dividend 370% in 8 Years

    Want reliable income in retirement? Here's why investors should consider this Asian insurance stock that is growing dividends fast.

  • Bloomberg

    Singapore-Backed AI Firm Taiger Wins $25 Million From Investors

    (Bloomberg) -- Taiger, an artificial intelligence startup whose clients include Bank of America Corp, AIA Group Ltd. and Banco Santander SA, has raised $25 million of funding for its expansion.The company’s valuation will reach $110 million after the investment, according to a statement from the Singapore-based startup. The series B funding round has been led by PacificBridge Asset Management, an affiliate of U.S. buyout firm TPG Capital, and Hong Kong-based merchant bank and asset manager MCM Investment Partners.The Singaporean government, an anchor investor in Taiger via its SGInnovate organization, has also committed funds to help boost the company’s growth in its home country. Taiger also plans to launch its services in South Korea and Japan, and further expand its footprint in the Americas specifically Mexico.Taiger’s AI solutions use human-like logic to automatically read, understand and extract information, helping companies and government agencies reduce operating costs and optimize processing time. The startup expects to keep up its revenue growth momentum by expanding in areas such as the legal sector, according to its founder and chief executive officer Sinuhe Arroyo.“We expect to close a number of new international clients later this year,” he said in the statement.To contact the reporter on this story: Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.netTo contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, Yudith HoFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Is There Now An Opportunity In AIA Group Limited (HKG:1299)?
    Simply Wall St.

    Is There Now An Opportunity In AIA Group Limited (HKG:1299)?

    AIA Group Limited (HKG:1299) saw a double-digit share price rise of over 10% in the past couple of months on the SEHK...

  • Is AIA Group Limited (HKG:1299) Potentially Underrated?
    Simply Wall St.

    Is AIA Group Limited (HKG:1299) Potentially Underrated?

    I've been keeping an eye on AIA Group Limited (HKG:1299) because I'm attracted to its fundamentals. Looking at the...

  • Reuters

    AIA Group posts 18 percent rise in first-quarter value of new business, boosted by China

    AIA's value of new business, which measures expected profits from new premiums and is a key gauge for future growth, rose to $1.17 billion for the three months ended March 31, up from $1.02 billion a year earlier. The insurer, originally founded in Shanghai nearly 100 years ago and the first foreign insurer to be granted a licence in China, has been expanding its presence in China amid Beijing's broader agenda to open up its financial sector to greater foreign participation. The company said in a statement to the stock exchange that the value of new business in Hong Kong, its key market, generated "double-digit" growth, but did not give a number.

  • Reuters

    BRIEF-AIA Group Says Q1 Value Of New Business $1,169 Mln

    May 10 (Reuters) - AIA Group Ltd: * REPORTS 11 PER CENT INCREASE IN ANNUALISED NEW PREMIUMS (ANP) TO US$1,827 MILLION IN Q1 * Q1 VALUE OF NEW BUSINESS (VONB) $1,169 MILLION VERSUS $1,021 MILLION * VONB ...

  • Should You Be Tempted To Sell AIA Group Limited (HKG:1299) Because Of Its P/E Ratio?
    Simply Wall St.

    Should You Be Tempted To Sell AIA Group Limited (HKG:1299) Because Of Its P/E Ratio?

    Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! This article is written for those who want to get better at using price to earnings ratios (P/E ratio...

  • Exclusive: Foreign insurers gear up to tap China's $1.6 trillion pensions business - sources
    Reuters

    Exclusive: Foreign insurers gear up to tap China's $1.6 trillion pensions business - sources

    Foreign insurers including Generali and Prudential Plc are in early talks with authorities to enter China's private pensions sector, people with knowledge of the matter said, as Beijing opens up to overseas companies. Hong Kong-based AIA Group and Manulife Financial are also considering similar moves, they said. Beijing gave approval to the first foreign joint-venture firm to establish a pensions insurance business last month and two of the people said China has been running pilot projects in three provinces involving foreign firms.

  • Could The AIA Group Limited (HKG:1299) Ownership Structure Tell Us Something Useful?
    Simply Wall St.

    Could The AIA Group Limited (HKG:1299) Ownership Structure Tell Us Something Useful?

    Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! If you want to know who really controls AIA Group Limited (HKG:1299), then you'll have to look at the makeup of its share reg...

  • Introducing AIA Group (HKG:1299), The Stock That Zoomed 124% In The Last Five Years
    Simply Wall St.

    Introducing AIA Group (HKG:1299), The Stock That Zoomed 124% In The Last Five Years

    When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, ifRead More...

  • Reuters

    AIA Group's 2018 value of new business rises 22 pct, beats forecasts

    AIA Group Ltd, the world's second-largest life insurer by market value, posted a 22 percent increase in its 2018 new business value, boosted by expansion in China and surging demand for insurance in Hong Kong, its home market. AIA's value of new business, which measures expected profits from new premiums and is a key gauge for future growth, rose to $3.96 billion in 2018, up from $3.21 billion in 2017, the company said in a statement on Friday. Analysts had expected Hong Kong-based AIA to post a 19 percent jump in value of new business to $3.83 billion, according to Refinitiv data.

  • Reuters

    BRIEF-AIA Group Says FY VONB US$3,955 Mln, Up 22 Pct

    March 15 (Reuters) - AIA Group Ltd: * FY 22 PER CENT GROWTH IN VONB TO US$3,955 MILLION * FY ANNUALISED NEW PREMIUMS BY 15 PER CENT TO US$6,510 MILLION * FY VONB MARGIN UP 3.7 PPS TO 60.0 PER CENT * ANNOUNCES ...

  • AIA Group Limited (HKG:1299) Investors Are Paying Above The Intrinsic Value
    Simply Wall St.

    AIA Group Limited (HKG:1299) Investors Are Paying Above The Intrinsic Value

    Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Insurance stocks such as 1299 are hard Read More...

  • Reuters

    Exclusive: China's Union Life to sell majority stake, draw local, overseas bidders -sources

    China's Union Life Insurance is planning to sell a controlling stake that could be snapped up by locals or foreigners looking to tap into the country's growing demand for insurance products, three people familiar with the matter told Reuters. A majority sale to an offshore company would mark a rare purchase of a financial services firm in China by a foreigner, indicating Beijing's push to ease ownership rules and attract investors to the world's No.3 insurance market were paying off. Union Life, expected to be valued at $1.5 billion to $2 billion, plans to sell as much as 51 percent, with an option to raise that to 100 percent later, the people said, declining to be named as the details are not public yet.

  • Economic Impact of Mini Trade Deal Is Quite Limited, Says AIA Group’s CIO
    Bloomberg

    Economic Impact of Mini Trade Deal Is Quite Limited, Says AIA Group’s CIO

    Oct.10 -- Mark Konyn, chief investment officer at AIA Group, discusses the U.S.-China trade negotiations and how they’re impacting markets. He speaks on “Bloomberg Markets: China Open.”

By using Yahoo, you agree that we and our partners can use cookies for purposes such as customising content and advertising. See our Privacy Policy to learn more