AIA Likely to Post Modest Contraction in 3Q New Business Value
Dow Jones
Oct 06
0737 GMT - AIA's value of new business is likely to deliver a modest contraction for 3Q, due to a high base and disruptions in the bancassurance channel, Citi analysts Michelle Ma and Amy Jy Chen say in a note. The high base likely stems from Hong Kong, Thailand and mainland China in the same period last year, and disruption should be attributed to regulatory changes. Base effects are then likely to normalize in 4Q, with solid growth returning in the last quarter of the year, the analysts say. They remain upbeat on AIA's medium-term outlook, citing operational resilience and sustainable growth. Citi retains its buy rating and 103.00 Hong Kong dollar target price. Shares fall 0.4% to HK$68.65.
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