Morgan Stanley: Expects AIA Group's new business value in the third quarter to increase by 15% year-on-year at constant exchange rates, rating "Overweight"

Morgan Stanley released a research report stating that it expects AIA Group's new business value in the third quarter to increase by 15% year-on-year at constant exchange rates, continuing the momentum of a 14% year-on-year increase in the first half of the year. The firm currently maintains an "Overweight" rating on AIA, with a target price of HKD 96. The firm anticipates that the Hong Kong and Thailand markets will continue to be growth drivers, with the Hong Kong market expected to achieve a 20% increase in new business value at constant exchange rates in the third quarter, due to the launch of popular new participatory products. The new business value in the mainland market is expected to increase by 9% year-on-year, with healthy demand anticipated due to a new round of interest rate cuts, along with regional business expansion and growth in the bancassurance channel. The firm also expects the new business value in the Thailand market to achieve a 20% year-on-year increase during the quarter, as the annualized premium equivalent in July and August grew by 13% year-on-year, with some medical products maintaining high profit margins, while co-payment rules remain controllable. The Singapore market is expected to achieve a 19% year-on-year increase in new business value, with its new linked products likely to remain attractive