AIA Group has agreed to invest RMB12,033m (US$1,860m) through its wholly-owned subsidiary, AIA Company Limited, for a 24.99% equity stake, post investment, in China Post Life Insurance.
The investment will be financed on an all-cash basis from internal resources.
A statement on AIA's website read: "AIA’s investment in China Post Life increases the group’s exposure to the growth opportunities in the Chinese life insurance market and enables AIA to capture the significant value available from distribution channels and customer segments that are complementary to our existing strategy in China. The group’s operations of AIA China will remain entirely independent of this investment."
The transaction is subject to securing all necessary regulatory approvals.