AIA Group has announced that AIA China has received approval from the provincial bureaux of Anhui Province and Shandong Province to begin preparations to establish a new branch in each of the two provinces.
Anhui province in eastern China has a gross domestic product of CNY4.7tn ($659bn) and a population of over 60m, of which around 17m are middle-class consumers. The province is strategically located to play a key role in the Yangtze River Delta integration plan, which has accelerated the development of this new economic zone. Hefei, the provincial capital, has attracted a growing pool of skilled professionals from across the country to its emerging sectors, including new energy vehicles, green industries and information technology, driving an increased demand for comprehensive insurance solutions.
Shandong is the second most populous province in mainland China with more than 100m residents, of whom over 30% are middle-class or above. It is the third largest provincial economy with a gross domestic product of more than CNY9.2tn and life insurance premiums amounting to CNY164.9bn in 2023. The large population and growing middle-class have propelled strong demand for life insurance. With its economic scale, Shandong is a driver of China’s continued reform and opening up, creating a favourable operating environment for foreign enterprises.
AIA Group chief executive and president Lee Yuan Siong said, “Mainland China remains one of the most attractive markets for life and health insurance in the world. AIA has significant headroom to grow within our existing footprint and in our new geographies.”
Mr Lee also said, “We are pleased to receive regulatory approval to expand into Shandong, after recent approval to prepare for a new branch in Anhui. Following our planned entry in Shandong, AIA will have access to over 60% of mainland China’s life insurance market.”
Branch operations in Anhui and Shandong will commence once final regulatory approvals are secured.
AIA China has operations in Beijing, Guangdong, Jiangsu, Shanghai, Shenzhen and has expanded into new geographies including Hebei, Henan, Hubei, Sichuan and Tianjin. AIA China received regulatory approval to become the first wholly foreign-owned life insurance company in mainland China in 2020.